Bank Annuity Income Jumps
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Copyright 2009 SourceMedia, Inc.All Rights Reserved Bank Investment Consultant
February 2009
UPFRONT NEWS; Pg. 9 Vol. 17 No. 2
572 words
Bank Annuity Income Jumps
Paul Menchaca
Bank annuity commissions and fees rose to $814 million in the first nine months of 2008 from $714.9 million in the first three quarters of last year, according to the Michael White-Symetra Bank Fee Income Report.
The 14% increase proved to be a silver lining for banks, which also saw income earned from the sale and servicing of mutual funds and annuities decline 8% in the first three quarters to $4 billion from $4.3 billion. Compiled by Michael White Associates, LLC (MWA) and sponsored by Symetra Financial, the report measures and benchmarks banks' performance in generating insurance, securities brokerage, annuity and mutual fund fee income.
Not surprisingly, most of the report's findings were not positive: Banks' $1.2 billion in third-quarter mutual fund and annuity fee income was down 18% from $1.4 billion in the second quarter 2008. Banks with over $10 billion in assets recorded $3.5 billion in mutual fund and annuity fee income for three quarters of 2008, down 8.8% from $3.87 billion for the same period in 2007.
This subset-banks with over $10 billion in assets-had the highest participation rate (71.3%) of any asset class of banks engaged in mutual fund and annuity sales and servicing activities. Their annuity commissions of $649.3 million grew 14.5% from $567.2 million the prior year's first three quarters and constituted 79.8% of total bank annuity commissions reported.
Nationally, Bank of America ranked first at the end of the third quarter, earning $1.42 billion in mutual fund and annuity fee income, down 9.1% from $1.56 billion in 2007. Wachovia Bank, Wells Fargo Bank, U.S. Bank and JPMorgan Chase rounded out the top five in combined mutual fund and annuity earnings.
The Michael-White Symetra Report is based on data from all 7,565 commercial and FDIC-supervised savings banks operating at the end of third quarter 2008.
Bank annuity commissions and fees rose to $814 million in the first nine months of 2008 from $714.9 million in the first three quarters of 2007, according to the Michael White-Symetra Bank Fee Income Report.
The 14% increase proved to be a silver lining for banks, which also saw income earned from the sale and servicing of mutual funds and annuities decline 8% in the first three quarters to $4 billion from $4.3 billion. Compiled by Michael White Associates, the report measures banks' fee income from insurance, securities brokerage, annuity and mutual funds.
Not surprisingly, most of the report's findings were not positive: Banks' $1.2 billion in third-quarter mutual fund and annuity fee income was down 18% from $1.4 billion in the second quarter 2008. Banks with over $10 billion in assets recorded $3.5 billion in mutual fund and annuity fee income for three quarters of 2008, down 8.8% from $3.9 billion for the same period in 2007.
But at the same time, these banks saw their annuity commissions of $649.3 million grow 14.5% from $567.2 million in the prior year's first three quarters. This constitutes 79.8% of total bank annuity commissions.
Nationally, Bank of America ranked first at the end of the third quarter, earning $1.42 billion in mutual fund and annuity fee income, down 9.1% from $1.56 billion in 2007. Wachovia, Wells Fargo, U.S. Bank and JPMorgan Chase rounded out the top five in combined mutual fund and annuity earnings.
The report is based on data from all 7,565 commercial and FDIC-supervised savings banks operating at the end of third quarter 2008.
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
Terms and Conditions Privacy Policy
February 2009
UPFRONT NEWS; Pg. 9 Vol. 17 No. 2
572 words
Bank Annuity Income Jumps
Paul Menchaca
Bank annuity commissions and fees rose to $814 million in the first nine months of 2008 from $714.9 million in the first three quarters of last year, according to the Michael White-Symetra Bank Fee Income Report.
The 14% increase proved to be a silver lining for banks, which also saw income earned from the sale and servicing of mutual funds and annuities decline 8% in the first three quarters to $4 billion from $4.3 billion. Compiled by Michael White Associates, LLC (MWA) and sponsored by Symetra Financial, the report measures and benchmarks banks' performance in generating insurance, securities brokerage, annuity and mutual fund fee income.
Not surprisingly, most of the report's findings were not positive: Banks' $1.2 billion in third-quarter mutual fund and annuity fee income was down 18% from $1.4 billion in the second quarter 2008. Banks with over $10 billion in assets recorded $3.5 billion in mutual fund and annuity fee income for three quarters of 2008, down 8.8% from $3.87 billion for the same period in 2007.
This subset-banks with over $10 billion in assets-had the highest participation rate (71.3%) of any asset class of banks engaged in mutual fund and annuity sales and servicing activities. Their annuity commissions of $649.3 million grew 14.5% from $567.2 million the prior year's first three quarters and constituted 79.8% of total bank annuity commissions reported.
Nationally, Bank of America ranked first at the end of the third quarter, earning $1.42 billion in mutual fund and annuity fee income, down 9.1% from $1.56 billion in 2007. Wachovia Bank, Wells Fargo Bank, U.S. Bank and JPMorgan Chase rounded out the top five in combined mutual fund and annuity earnings.
The Michael-White Symetra Report is based on data from all 7,565 commercial and FDIC-supervised savings banks operating at the end of third quarter 2008.
Bank annuity commissions and fees rose to $814 million in the first nine months of 2008 from $714.9 million in the first three quarters of 2007, according to the Michael White-Symetra Bank Fee Income Report.
The 14% increase proved to be a silver lining for banks, which also saw income earned from the sale and servicing of mutual funds and annuities decline 8% in the first three quarters to $4 billion from $4.3 billion. Compiled by Michael White Associates, the report measures banks' fee income from insurance, securities brokerage, annuity and mutual funds.
Not surprisingly, most of the report's findings were not positive: Banks' $1.2 billion in third-quarter mutual fund and annuity fee income was down 18% from $1.4 billion in the second quarter 2008. Banks with over $10 billion in assets recorded $3.5 billion in mutual fund and annuity fee income for three quarters of 2008, down 8.8% from $3.9 billion for the same period in 2007.
But at the same time, these banks saw their annuity commissions of $649.3 million grow 14.5% from $567.2 million in the prior year's first three quarters. This constitutes 79.8% of total bank annuity commissions.
Nationally, Bank of America ranked first at the end of the third quarter, earning $1.42 billion in mutual fund and annuity fee income, down 9.1% from $1.56 billion in 2007. Wachovia, Wells Fargo, U.S. Bank and JPMorgan Chase rounded out the top five in combined mutual fund and annuity earnings.
The report is based on data from all 7,565 commercial and FDIC-supervised savings banks operating at the end of third quarter 2008.
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
Terms and Conditions Privacy Policy
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