Ameriprise Financial 4Q Profit Up 49 Pct

Ameriprise Financial Inc., an asset management company, said Thursday its fourth quarter 2007 profit jumped 49 percent due to a growing wealthy client business.

Net income for the three months ended Dec. 31 rose to $255 million, or $1.08 per share, from $171 million, or 69 cents per share.

Adjusting the 2007 earnings-per-share figure to exclude non-recurring investment gains and costs of its spinoff, resulted in an adjusted earnings per share of $1.16. Analysts surveyed by Thomson Financial expected adjusted earnings per share of $1.03.

Ameriprise said the fourth quarter of this year would be the last in which it incurs separation costs due to its 2005 spinoff from former parent American Express Co.

"Mass affluent and affluent client assets increased 10 percent over a year ago," the company said in a statement, adding that "financial planning net cash sales among branded advisors" rose 8 percent.

Revenue for the quarter climbed 8 percent to $2.32 billion from $2.14 billion. The company credited continued strong growth in management and financial advice fees plus higher investment income from variable annuity-related hedges.

For the full year, profit gained 29 percent to $814 million, or $3.39 per share, on revenue climbing 8 percent to $8.7 billion.

Shares rose 25 cents to $50.23 in the regular trading session.