Bank holding companies’ income from mutual funds and annuities increased in 2003 despite a drop in the companies’ fund and annuity assets.[@@]
The companies’ annuity and mutual fund fee income increased 10% between 2002 and 2003, to a record $15.4 billion, according to Michael White Associates L.L.C., Radnor, Pa.
Half of the more than 2,000 U.S. bank holding companies generated mutual fund or annuity fee income in 2003, the research firm reports.
Michael White, head of the firm, says the fee income analysis emphasizes income from the bank holding companies’ agency operations rather than the revenue from the companies’ underwriting operations.
About 89% of bank holding companies with more than $10 billion in assets sold proprietary mutual funds and annuities in 2003. Those activities generated about $13 billion in fees. The big bank holding companies accounted for 84% of all 2003 BHC mutual fund and annuity fee revenue.