Ameriprise's Advice and Wealth Management unit reported a record-breaking profit margin for the third consecutive quarter.
According to FinancialPlanning.com, the surge in profits largely can be attributed to the Federal Reserve's interest rate hikes and the increasing values and inflows of assets.
However, despite the overall growth, client cash balances decreased by 11% to $42.02 billion, accounting for about 5% of their portfolios, compared to 6.5% in the previous year. Ameriprise's yield on cash assets remained lucrative due to favorable interest rate trends, generating impressive returns of 4.77% for the quarter, according to FinancialPlanning.com. Additionally, the company's efforts to recruit nearly 100 experienced financial advisors in the last three months contributed to the continuous growth of its workforce.
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