Banking: Annuities Activities

In 2011, 333 bank holding companies (BHC) reported $25.0 billion in income from sales of mutual funds and annuities. The same year 345 individual banks, many of which are subsidiaries of BHCs, reported $2.6 billion in such income. The BHC and bank figures have not been totaled to avoid double counting since most of the bank income is captured in the consolidated reporting by the BHCs.

 

MUTUAL FUND AND ANNUITY INCOME OF BANK HOLDING COMPANIES AND BANKS, 2007-2011 (1)

  BHCs reporting mutual fund and annuity income Banks reporting mutual fund and annuity income
Year Number Percent Income
($ billions)
Number Percent Income
($ billions)
2007 555 64.7% $22.81 1,841 23.9% $5.80
2008 554 62.8 21.97 1,737 23.2 5.14
2009 (2) 336 36.7 20.18 338 4.7 4.10
2010 322 35.4 23.23 345 5.0 2.80
2011 333 35.8 25.04 345 5.2 2.64

(1) The BHC and bank data are not totaled to avoid double counting. Most bank income is captured in the consolidated reporting by BHCs.
(2) Effective 2009, only banks with assets greater than $1 billion are required to report combined mutual fund and annuity fee income. Hence, the large decline in 2009 in banks reporting that form of fee income.

Source: Michael White Bank Mutual Fund & Annuity Fee Income Report - 2012.

 

 

TOP TEN BANK HOLDING COMPANIES AND BANKS IN PROPRIETARY MUTUAL FUND AND ANNUITY ASSETS UNDER MANAGEMENT, 2011

($000)

   Bank holding companies  Banks
Rank Bank holding company (State) Proprietary mutual fund and annuity assets under management Bank (State) (1) Proprietary mutual fund and annuity assets under management
1 JPMorgan Chase & Co. (NY) $720,025,000 The Northern Trust Company (IL) $108,597,942
2 Bank of New York Mellon Corporation (NY) 308,771,000 Bank of America, N.A. (NC) 49,062,851
3 Goldman Sachs Group, Inc. (NY) 226,945,000 U.S. Bank N.A. (OH) 44,803,901
4 Wells Fargo & Company (CA) 220,326,000 HSBC Bank USA, N.A. (VA) 15,317,264
5 State Street Corporation (MA) 176,516,109 PNC Bank, N.A. (DE) 15,117,672
6 Northern Trust Corporation (IL) 108,597,942 Bessemer Trust Company, N.A. (NY) 13,814,766
7 Taunus Corporation (NY) 95,289,000 KeyBank N.A. (OH) 10,854,672
8 Bank of America Corporation (NC) 49,062,851 Manufacturers and Traders Trust Company (NY) 7,956,522
9 U.S. Bancorp (MN) 44,804,000 Fifth Third Bank (OH) 7,809,511
10 RBS USA Holdco Corporation (NY) 38,757,000 Union Bank, N.A. (CA) 7,071,226

(1) Many banks are single institutions that are part of BHCs. N.A.=National bank (federally chartered).

Source: Michael White Bank Mutual Fund & Annuity Fee Income Report - 2012.

 

 

 

TOP TEN BANK HOLDING COMPANIES AND BANKS IN MUTUAL FUND AND ANNUITY INCOME, 2011

($000)

  Bank holding companies Banks
Rank Bank holding company (State) Mutual fund and
annuity income
Bank (State) (1) Mutual fund and
annuity income
1 Franklin Resources, Inc. (CA) $6,369,708 Wells Fargo Bank, N.A. (SD) $356,000
2 MetLife, Inc. (NY) 5,017,250 The Northern Trust Company (IL) 344,865
3 Wells Fargo & Company (CA) 4,857,000 PNC Bank, N.A. (DE) 201,089
4 JPMorgan Chase & Co. (NY) 2,180,000 Bank of America, N.A. (NC) 182,987
5 Morgan Stanley (NY) 1,819,000 State Street Bank and Trust Company (MA) 148,057
6 Bank of New York Mellon Corporation (NY) 814,000 JPMorgan Chase Bank, N.A. (OH) 135,000
7 Goldman Sachs Group, Inc. (NY) 730,000 RBS Citizens, N.A. (RI) 91,419
8 Northern Trust Corporation (IL) 345,178 Fifth Third Bank (OH) 82,230
9 Taunus Corporation (NY) 319,000 Compass Bank (AL) 81,419
10 RBS USA Holdco Corporation (NY) 235,617 Branch Banking and Trust Company (NC) 77,056

(1) Many banks are single institutions that are part of BHCs. N.A.=National bank (federally chartered).

Source: Michael White Bank Mutual Fund & Annuity Fee Income Report - 2012.

 

 

ANNUITY COMMISSIONS OF BANK HOLDING COMPANIES AND BANKS, 2007-2011 (1)

  BHCs reporting annuity commissions  Banks reporting annuity commissions  
Year Number Percent Income
($ billions)
Number Percent Income
($ millions)
2007 376 43.8% $2.02 1,074 13.9% $940.50
2008 385 43.7 2.61 1,038 13.9 1,003.00
2009 392 42.8 2.62 985 13.6 824.20
2010 386 42.4 2.57 938 13.5 720.20
2011 389 41.8 2.84 910 13.6 745.20

(1) The BHC and bank data are not totaled to avoid double counting. Most bank income is captured in the consolidated reporting by BHCs.

Source: Michael White ABIA Bank Annuity Fee Income Report - 2012.

 

 

 

TOP TEN BANK HOLDING COMPANIES AND BANKS IN ANNUITY COMMISSIONS, 2011

($000)

  Bank holding companies Banks 
Rank Bank holding company (State) Annuity
commissions
Bank (State) (1) Annuity
commissions
1 Wells Fargo & Company (CA) $777,000 PNC Bank, N.A. (DE) $70,780
2 Morgan Stanley (NY) 432,000 Compass Bank (AL) 67,107
3 JPMorgan Chase & Co. (NY) 318,000 KeyBank N.A. (OH) 50,043
4 Bank of America Corporation (NC) 244,447 Branch Banking and Trust Company (NC) 47,069
5 Suntrust Banks, Inc. (GA) 93,536 RBS Citizens, N.A. (RI) 34,744
6 RBC USA Holdco Corporation (NY) 78,251 Manufacturers and Traders Trust Company (NY) 33,942
7 PNC Financial Services Group, Inc. (PA) 70,780 Fifth Third Bank OH) 31,714
8 BBVA USA Bancshares, Inc. (TX) 67,107 Regions Bank (AL) 27,486
9 U.S. Bancorp (MN) 62,000 Bank of the West (CA) 24,497
10 Keycorp (OH) 50,043 Union Bank, N.A. (CA) 19,734

(1) Many banks are single institutions that are part of BHCs. N.A.=National bank (federally chartered).

Source: Michael White ABIA Bank Annuity Fee Income Report - 2012.

 

 

BANK SHARE OF FIXED AND VARIABLE ANNUITY PREMIUMS, 2004-2013

($ billions)

  Fixed annuity premiums Variable annuity premiums
Year Total market Banks Bank share Total market Banks Bank share
2004 $81.9 $30.3 37.0% $132.9 $18.0 13.5%
2005 73.6 21.8 29.6 136.9 17.7 12.9
2006 72.4 20.1 27.8 160.4 21.6 13.5
2007 72.8 16.9 23.2 184.0 25.5 13.9
2008 109.3 33.3 30.5 155.7 18.7 12.0
2009 110.6 31.4 28.4 128.0 13.1 10.2
2010 81.9 17.3 21.1 140.5 15.6 11.1
2011 80.5 17.6 21.9 157.9 18.0 11.4
2012 72.3 12.3 17.0 147.4 17.4 11.8
2013 84.4 17.5 20.7 145.4 18.4 12.7

Source: Bank Insurance and Securities Research Associates (BISRA).

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