Fee income from a variety of wealth management services provided by bank and thrift holding companies to individuals, families, business and nonprofits grew by 10.5% to some $99 billion in the first three quarters of 2013 over the same period in 2012, according to a new study.
The report, from Michael White Associates and Investment Professionals Inc., was based on data from all 6,891 commercial banks, savings banks and thrifts, and from 1,068 top-tier bank and thrift holding companies that were operating on Sept. 30.
Of the 1,068 BHCs, 573 engaged in wealth management activities.
The study found that 83% of the BHC wealth management programs were on track to earn at least $250,000 in 2013. Of those, 56% had double-digit growth over 2012, and 32% enjoyed growth of more than 20%.
“In the first nine months of 2013 compared to 2012, all components of wealth management showed positive growth,” IPI president Jay McAnelly said in a statement.
McAnelly said optimizing all components of a wealth management program in the current economy was critical.
“Community bank wealth management and investment program managers especially must continue to strengthen retail distribution of these essential products and services to help their banks offset declines in traditional banking revenues such as service charges and net interest margins.”