NU Online News Service, May 28, 2003, 5:11 p.m. EDT – Bank broker-dealers reported lower sales for the first quarter than they reported for the first quarter of 2002, but, by some measures, the banks’ productivity improved, according to the Bank Insurance and Securities Association, Wayne, Pa.
Bank investment reps who hold Series 7 retail licenses generated an average of $23,763 in gross commission revenues per month during the first quarter, down 6% from the average for the first quarter of 2002, BISA says.
Licensed bankers averaged $2,392 in monthly gross commissions, down 13%.
But customers showed some signs of recovering from their recent fear of investment risk.
The share of bank investment revenue coming from mutual funds fell to 12% during the latest quarter, from 14% during the first quarter of 2002, but the share coming from variable annuities increased to 17%, from 13%, and the share coming from stocks and bonds jumped to 18%, from 7%.
The share coming from fixed annuities fell to 41%, from 58%, BISA says.
Bank investment sales showed solid growth when expressed in terms of performance per $1 million in bank retail deposits.
The average bank retail securities program had annualized revenue of $2,462 per $1 million in deposits in the first quarter, up 13% from the first quarter of 2002, BISA reports.
Annualized profit penetration of investment services rose to $1,178 per $1 million of deposits, from $948.