NU Online News Service, Aug. 22, 2003, 3:53 p.m. EDT – The stock market rebounded during the second quarter, but registered representatives at bank broker-dealers generated 8% less commission revenue during the quarter than they generated during the second quarter of 2002, according to the Bank Insurance and Securities Association, Wayne, Pa.
Average commission revenue for bank investment reps who hold Series 7 retail licenses fell to $25,708 per month, from $28,058.
Licensed bankers averaged $2,010 in monthly gross commissions, down 23%, BISA reports.
BISA bases the quarterly survey reports on data collected by researchers at Kenneth Kehrer Associates, Princeton, N.J.
Although productivity was down, customers continued to show signs of recovering from their recent fear of investment risk.
The share of bank investment revenue coming from outside mutual funds rose to 12% during the latest quarter, from 10% during the second quarter of 2002, and the share coming from variable annuities increased to 21%, from 13%.
The share coming from fixed annuities fell to 31%, from 56%, BISA says.
Stocks and bonds accounted for 17% of revenue in the second quarter, up from only 8%.
Profit margins for banks’ investment products rose to 37%, from 36%, thanks in large part to the improved sales of variable annuities, BISA says.