AMPNEUTRAL

Return on Equity (ROE)

54.4%

Higher than 97% of Financial Services sector peers

Updated 1928h ago

Sector Performance

97th percentile

AMP

54.4%

Sector Median

12.9%

Sector Avg

17.5%

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Deep Analysis

Ameriprise Financial's current Return on Equity (ROE) of 54.4% means that for every dollar of shareholders' equity, the company generated 54.4 cents in profit over the past year — a measure of how efficiently it uses investor capital.

This places the firm at the 100th percentile among Financial Services peers, far above the sector median of 13.9%. Trend data is not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, and the historical series shows only a single value. The combination of an exceptionally high ROE with no trend history creates uncertainty — the metric suggests strong current profitability but offers no insight into whether that level is stable or fading. This ambiguity introduces risk for investors who rely on consistency, while the high level alone could be interpreted as an opportunity if sustained. The 54.4% ROE does not contradict the overall NEUTRAL verdict, as the extremely high level supports a positive view but the lack of trend data prevents a bullish stance, aligning with a neutral assessment.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AMP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AMP's Return on Equity (ROE) compare to its sector?

AMP's Return on Equity (ROE) of 54.4% compares to a Financial Services sector median of 12.9%, placing it in the 97th percentile.

Who are AMP's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: BLK (11.9%), RF (11.9%), HSBC (11.6%), GOLD (10.8%), PRU (10.7%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.