Sales of annuities at banks are up modestly from last year.
During the first quarter of 2013, banks generated $790.7 million in annuity sales, up 1.2% from $781.7 million in the same quarter last year, according to the Michael White Bank Annuity Fee Income Report.
The largest bank holding companiesthose with more than $10 billion in assetsaccounted for the bulk of the sales, raking in $735.1 million, or 93% of the industry total. Bank holding companies with between $1 billion and $10 billion in assets generated $47.8 million, while those with between $500 million and $1 billion in assets generated $7.7 million.
A total of 417 bank holding companies reported annuity fee income in the first quarter. Of those, 209 were on track to earn at least $250,000 this year. Of the 209, about half or 105 achieved double-digit growth in annuity fee income for the quarter, according to the report.
Those findings are considerably better than first-quarter 2012, but not quite as high as first-quarter 2011 when 116 institutions or 63.4% of 183 of those on track to earn at least $250,000 in annuity fee income achieved double-digit growth, Michael White, president of Michael White Associates, a consulting and research firm based in Radnor, Pa., said in a statement.
Wells Fargo & Co. was the top producer of annuity fee income in the first quarter, generating $194 million. Morgan Stanley ranked second, with $157 million in annuity sales, followed by Raymond James Financial, which pulled in $81 million.
The report is based on data from 7,019 commercial banks, savings banks and savings associations, and 1,084 large top-tier bank and thrift holding companies with consolidated assets greater than $500 million operating on March 31, 2013.
Register or login for access to this item and much more
All On Wall Street content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access