Banks’ mutual fund and annuity fee income dropped 10.6% last year, according to a study by Michael White Associates LLC.
Based on data reported by all 8,000 commercial and FDIC-regulated savings banks, MWA, Radnor, Pa., found banks’ mutual fund and annuity fee income fell from $5.6 billion in 2004 to a little over $5 billion last year.
Only 25% of the surveyed banks actually earned mutual fund or annuity fee income, MWA found.
Banks will $10 billion or more in assets had the highest participation, with 74.2% selling mutual funds or annuities and producing $4.5 billion in income from one or both products, more than $500 million less than in 2004. These large banks accounted for 89% of all bank mutual fund and annuity fee income.
Banks under $10 billion in assets recorded $536.2 million or 11% of all bank mutual fund and annuity fee income.
In 2005, the top 5 banks in mutual fund and annuity fee income were Bank of America N.A., Charlotte, N.C.; Wachovia Bank N.A., Charlotte, N.C.; JP Morgan Chase Bank, N.A. New York; Wells Fargo Bank N.A, San Francisco; and U.S. Bank N.A., Minneapolis, Minn.