The growth in advice and wealth management earnings was achieved through growth in asset-based fees and expense management, the firm said, while low interest rates and lower transactional revenues contributed to a $10 million drop in pretax earnings.

Operating net revenues from advice and wealth management were flat at $953 million. Total retail client assets grew 4 per cent to $331 billion, including $2.6 billion in wrap net inflows in the quarter and $1.3 billion of higher cash balances compared to a year ago.

Operating expenses improved 1 per cent to $842 million, primarily reflecting lower distribution expenses, Ameriprise said.

The second quarter pretax operating margin increased to 11.6 per cent, compared to 11.3 per cent a year earlier, and from 9.9 per cent in the previous quarter, reflecting improved expenses.

In its earnings release, the firm said it is “committed to maintaining its expense management initiatives while making prudent investments for growth, including investing in the Ameriprise Financial brand, recruiting experienced advisors and transitioning advisors to a new brokerage technology platform.”

The financial firm added 91 advisors during the second quarter – marking a fifth consecutive quarter of growth in advisor numbers there.

In asset management, operating earnings declined 11 per cent year-over-year to $130 million, as assets under management dropped but expenses also fell.

Operating net revenues declined 6 per cent in asset management to $707 million, hit by lower average assets, net outflows and market depreciation. On the other hand, operating expenses improved 5 per cent to $577 million.

The adjusted net pretax operating margin was 33.7 per cent for Q2 in asset management, compared to 34.9 per cent a year earlier and 33.3 per cent sequentially.

Total assets under management in the segment dropped 5 per cent year-over-year to $446 billion.

For its group-wide results, Ameriprise Financial reported net income from continuing operations of $224 million, compared to $319 million a year ago. Results in the quarter included $57 million of “unfavorable items,” the firm said, such as an unusual tax-related item. The year-ago period included an after tax gain of $18 million from an interest rate hedge.