AMPNEUTRAL

AMP Return on Equity (ROE) Analysis

54.4%

Higher than 95% of Financial Services sector peers

Updated 3031h ago·SEC filings & market data

Key Takeaway

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.

Sector Performance

95th percentile

AMP

54.4%

Sector Median

13.3%

Sector Avg

19.5%

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Deep Analysis

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 13.3%, placing it in the 95th percentile.

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

The closest Financial Services peers by Return on Equity (ROE) include: PFG (12.9%), HDB (13.8%), AFL (12.4%), ARES (12.3%), RF (11.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.