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.