The monthly productivity of bank broker-dealers fell 8%, to $25,708, during the second quarter of 2003, from an average of $28,058 in terms of gross investment product revenue in the second quarter last year, reports the Bank Insurance & Securities Association, Wayne, Pa. The survey was conducted by Kenneth Kehrer Associates, Princeton, N.J.
However, bank investment sales during the most recent quarter were up 8% from the first quarter of this year, when the average monthly gross revenue was $23,763 per broker-dealer.
The average licensed branch banker generated monthly gross commissions of $2,010 during the second quarter, down 23% from $2,602 in the same period last year and 16% from the first quarter of 2003, BISA found.
Despite the revenue drop, profit margins for banks investment products rose slightly, from 36% in the second quarter 2002 to 37% in the same period this year. This was largely due to the improved sales of variable annuities, BISA says.
VAs accounted for 21% of bank securities revenue in the second quarter, up 8% over the same period last year.
“For the fourth consecutive quarter, VA revenue exceeded mutual fund revenue in the typical bank brokerage,” BISA said in its quarterly productivity and performance report.