The advice and wealth management unit of Ameriprise Financial has posted pre-tax adjusted operating earnings of $368m for the fourth quarter of 2018, an increase of 13% compared to $325m in the previous year.

The company attributed the growth to continued strength in client net inflows alongside increased earnings on cash balances.

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The division’s pretax adjusted operating margin increased 180 basis points to 23.3% in the quarter from 21.5% last year.

The unit’s adjusted operating net revenues increased 5% to $1.58bn from $1.51bn a year ago.

The rise is said to be due to “strong client activity, increased adviser productivity and higher earnings on cash balances”.

Adjusted operating expenses at the division rose 2% year-on-year to $1.21bn.

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Total retail client assets dipped 4% to $539bn from $560m last year. Wrap net inflows were $4.5bn, down 10% from the previous year.

Asset Management

Pre-tax adjusted operating earnings in the asset management arm were $153m in the fourth quarter of 2018.

The figure marked a 27% slump compared to $210m in the same quarter of 2017.

The unit’s adjusted operating net revenues were $706m, a 13% decrease from $816m a year earlier.

The fall was said to be due to lower performance fees, markets and the cumulative impact of outflows.

Adjusted operating expenses at the asset management arm increased 9% to $553m on a year-on-year basis.

The unit’s assets under management totalled $431bn at the end of December 2018, a fall of 13% from $495bn last year.

Ameriprise chairman and CEO Jim Cracchiolo said: “Ameriprise delivered solid results in a volatile quarter with our Advice and Wealth Management business driving our growth.

“Ameriprise client flows into fee-based investment advisory remained strong and cash balances increased. As we serve more clients in advice relationships, we’re steadily growing adviser productivity.”