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Bank Investment Transaction Sizes Soar

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Banks are reporting a big increase in average investment product transaction sizes for 2003.[@@]

Average transaction sizes increased for almost every investment product category except stock sales, according to the American Bankers Association, Washington.

The average transaction size increased to $31,800 for fixed annuities, up from $22,300 in 2000, when the ABA conducted the previous transaction size survey.

The average increased to $40,300, from $26,300, for variable annuities, and it increased to $16,000, from $13,000, for mutual fund transactions.

The average rose to $39,200, from $22,400, for bond sales, but it fell to $5,800, from $7,500, for stock sales.

American Brokerage Consultants Inc., St. Petersburg, Fla., conducted the study for the ABA.

In addition to looking at average transaction sizes, American Brokerage studied banks’ sources of investment product fee income.

Slightly more than half of banks’ 2003 fee income came from FA sales, 23% came from mutual fund sales and 15% came from VA sales, American Brokerage reports.

Only 11% of banks’ investment product fee income came from sales of stocks and bonds.