In the third quarter, Wachovia reports that the number of Series 7 brokers has stayed flat at 14,635. The number of bank, or Series 6, brokers, stands at 4,447, up 3 percent from the second quarter. The company says that it has seen “growth in high-producing [Series 7] FAs offset by lower-producing FA attrition.”
Overall, the segment including registered representatives — capital management — reports that it had a loss of $499 million on $1.36 billion total revenue.
The amount of annualized revenue per broker is now $522,000, down some 9 percent from the second quarter and 24 percent from a year ago. Broker client assets stand at $1 trillion, a 9 percent fall from the previous quarter but a 24 percent jump from the same period of 2007. And managed account assets stand at $171 billion, an increase of 9 percent, which the company attributes to the A.G. Edwards acquisition and $7.7 billion in net inflows.
Total client assets are down 16 percent, despite a 24 percent drop in the S&P 500, according to the company.
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Retail brokerage core deposits, also called FDIC sweep deposits, rose 75 percent year over year and included $23 billion from the A.G. Edwards deal and solid growth. Annuity sales have expanded 36 percent vs. 2007.
Total assets under management were $209.1 billion as of September 30, down 27 percent from December 31, 2007, driven by net outflows of $40.6 billion as well as $25.0 billion in lower market valuations, according to the company.