Bank annuity commissions and fees rose 14% in the first 3 quarters of 2008, to $814 million from $715 million in the same period last year, according to a quarterly survey.
However, during the same period, income earned from the sale and servicing of both mutual funds and annuities at banks fell 8%, to $4 billion, from $4.3 billion in the first 3 quarters of 2007, according to the survey report, issued by Michael White Associates L.L.C., Radnor, Pa.
The study, sponsored by Symetra Financial Corp., Bellevue, Wash., is based on data from 7,565 commercial and FDIC-supervised savings banks. MWA found that 1,724 or 22.8% of banks were engaged in mutual fund and annuity sales and servicing, down from 23.5% in 2007.
Banks’ mutual fund and annuity income represents only part of the industry’s total income from these products because it does not include data from bank holding companies, MWA notes.