Banks that sold insurance in 2008 reported median net income that was 69% higher than the median net income for all banks.
Researchers at Bank Insurance Market Research Group Inc., Mamaroneck, N.Y., have published that finding in their latest annual review of bank data from the Federal Deposit Insurance Corp.
The Bank Insurance Market researchers’ bank insurance revenue figures exclude annuity sales.
In 2007, the researchers found that net income was 44% higher at banks with insurance sales revenue
The overall median net income for all 7,563 operating banks and savings banks was $686,000 in 2008.
The median for the 3,338 banks and savings banks with some insurance activity was about $1.2 million.
The income disparity held true for banks in all asset size categories except for the over-$10 billion category, the researchers report.
Median net income was 23% higher for banks with insurance activity that have $1 billion to $10 billion in assets, but, for banks with more than $10 billion in assets, the profitability of banks with insurance activity was about the same as the profitability of all banks in that size range, the researchers write.