NU Online News Service, Aug. 12, 5:07 p.m. – Bank broker-dealers brought in more revenue during the second quarter, according to Kenneth Kehrer Associates, Princeton, N.J.
The firm’s latest survey for the Bank Securities Association, Wayne, Pa., found that average gross commission revenues from banks’ full-time retail investment sales representatives reached $28,058 per month during the quarter, up 14% from the second quarter of 2001, and up 11% from the first quarter of 2002.
Variable annuities lost some ground in the bank broker-deal channel, but they gained on mutual funds.
Variable-annuity sales accounted for only 13% of bank securities program revenue in the second quarter, down from 16% in the second quarter of 2001.
But because the share of revenue coming from mutual fund sales also fell, the figures mean that, for the first time, the typical bank brokerage generated as much revenue from variable-annuity sales in the second quarter as from mutual fund sales, the BSA says.
Although the second quarter was a solid quarter, June was a weak month.
Licensed reps, for example, generated an average of $2,118 in gross commissions in June, down from an average of $2,707 in May and an average of $2,980 in April.
Banks earned an average of $203 in brokerage revenue per $1 million of bank retail deposits in May, up from $195 in April.
But, in June, “bank brokerage revenue fell back 16% to $170 per million,” the BSA reports.