Ameriprise to sell Securities America
NEW YORK |
(Reuters) - Ameriprise Financial (AMP.N) boosted its profit during the first quarter and said it plans to sell its Securities America brokerage unit, which took a $118 million charge during the quarter for a legal settlement.
The Minneapolis-based firm reported a first-quarter profit of $241 million, or 94 cents per share, compared with $214 million, or 81 cents a share, a year ago.
Excluding the legal settlement charge, the company made $1.35 per share, up 54 percent from a year earlier thanks to last year's purchase of Columbia Management, improved sentiment among retail clients and increasing productivity from financial advisers.
Analysts were expecting a profit of $1.33 a share, excluding the legal charge, according to Thomson Reuters I/B/E/S.
Revenue was $2.65 billion, compared with $2.27 billion last year.
"Adviser productivity is at record levels, and retail client assets, inflows and activity all improved," said Chief Executive Officer Jim Cracchiolo in a statement .
Ameriprise said it is trying to find an "appropriate buyer" for the Securities America brokerage.
The company took a $118 million pre-tax charge during the quarter, on top of a $40 million pre-tax charge during the fourth quarter, to settle claims with investors who lost money on private placements issued by Medical Capital Holdings Inc and Provident Royalties.
"A sale would allow (Securities America) to focus on growth opportunities in the independent channel and would allow Ameriprise to devote its resources to the Ameriprise branded adviser business," the company said in the statement.
"(Ameriprise's) willingness to provide the financial means for the Medical Capital and Provident Royalties settlement leaves Securities America in a strong financial position to continue operations with no disruptions," said a Securities America spokeswoman in a statement.
(Reporting by Helen Kearney. Editing by Robert MacMillan)
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