Banking: Securities Activities

Investment Banking, Advisory and Underwriting Income of Banking Institutions

In 2011, 260 bank holding companies (BHC) recorded $51.5 billion in investment banking, advisory and underwriting income. The same year, 559 individual banks, many of which are subsidiaries of BHCs, earned $5.6 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.

 

INVESTMENT BANKING, ADVISORY AND UNDERWRITING INCOME OF BANK HOLDING COMPANIES AND BANKS, 2007-2011 (1)

  BHCs reporting investment banking, advisory and underwriting income Banks reporting investment banking, advisory and underwriting income
Year Number Percent Income
($ billions)
Number Percent Income
($ billions)
2007 274 31.9% $43.70 717 9.3% $6.42
2008 279 31.6 35.64 688 9.2 5.27
2009 265 28.9 52.64 622 8.6 6.61
2010 251 27.6 54.28 570 8.2 5.30
2011 260 28.0 51.53 559 8.4 5.57

(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 Bank Investment Fee Income Report - 2012.

 

 

TOP TEN BANK HOLDING COMPANIES AND BANKS IN INVESTMENT BANKING, ADVISORY AND UNDERWRITING INCOME, 2011

($000)

  Bank holding companies  Banks 
Rank Bank holding company (State) Investment, banking, advisory and
underwriting income
Bank (State) (1) Investment, banking, advisory and
underwriting income
1 Morgan Stanley (NY) $9,992,000 JPMorgan Chase Bank, N.A. (OH) $3,071,000
2 Goldman Sachs Group, Inc. (NY) 8,823,000 Citibank, N.A. (SD) 594,000
3 JPMorgan Chase & Co. (NY) 7,800,000 Bank of America, N.A. (NC) 400,434
4 Franklin Resources, Inc. (CA) 6,970,425 Deutsche Bank Trust Company Americas (NY) 166,000
5 Bank of America Corporation (NC) 5,216,957 Goldman Sachs Bank USA (NY) 139,000
6 Wells Fargo & Company (CA) 3,865,000 PNC Bank, N.A. (DE) 114,347
7 Citigroup Inc. (NY) 3,505,000 Fifth Third Bank (OH) 106,828
8 Taunus Corporation (NY) 1,408,000 KeyBank N.A. (OH) 103,072
9 RBC USA Holdco Corporation (NY) 1,062,465 State Street Bank and Trust Company (MA) 100,513
10 PNC Financial Services Group, Inc. (PA) 683,168 Wells Fargo Bank, N.A. (SD) 72,000

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

Source: Michael White Bank Investment Fee Income Report - 2012.

 

 

 

INVESTMENT FEE INCOME OF BANK HOLDING COMPANIES AND BANKS, 2007-2011 (1)

  BHCs reporting investment fee income Banks reporting investment fee income
Year Number Percent Income
($ billions)
Number Percent Income
($ billions)
2007 632 73.7% $62.19 2,216 28.8% $14.21
2008 638 72.3 56.34 2,150 28.7 13.28
2009 653 71.3 89.75 2,034 28.1 12.00
2010 634 69.6 91.96 1,905 27.5 9.86
2011 645 69.4 91.18 1,830 27.4 9.79

(1) Income from investment banking, advisory, brokerage and underwriting fees and annuity commissions. 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 Bank Investment Fee Income Report - 2012.

 

 

TOP TEN BANK HOLDING COMPANIES AND BANKS IN INVESTMENT FEE INCOME, 2011 (1)

($000)

  Bank holding companies  Banks 
Rank Bank holding company (State) Investment
fee income
Bank (State) (2) Investment fee income
1 Morgan Stanley (NY) $17,894,000 JPMorgan Chase Bank, N.A. (OH) $4,435,000
2 Bank of America Corporation (NC) 15,391,890 Bank of America, N.A. (NC) 791,361
3 Goldman Sachs Group, Inc. (NY) 12,646,000 Citibank, N.A. (SD) 694,000
4 JPMorgan Chase & Co. (NY) 10,871,000 Wells Fargo Bank, N.A. (SD) 439,000
5 Wells Fargo & Company (CA) 9,390,000 PNC Bank, N.A. (DE) 315,350
6 Franklin Resources, Inc. (CA) 6,970,425 Fifth Third Bank (OH) 187,910
7 Citigroup Inc. (NY) 5,353,000 KeyBank N.A. (OH) 181,313
8 Taunus Corporation (NY) 2,385,000 Deutsche Bank Trust Company Americas (NY) 166,000
9 RBC USA Holdco Corporation (NY) 1,968,897 State Street Bank and Trust Company (MA) 153,532
10 Bank of New York Mellon Corporation (NY) 1,470,000 Goldman Sachs Bank USA (NY) 139,000

(1) Includes all income generated from broker-dealer activities, including investment banking, advisory and underwriting income, securities brokerage income and annuity commissions.
(2) Many banks are single institutions that are part of BHCs. N.A.=National bank (federally chartered).

Source: Michael White Bank Investment Fee Income Report - 2012.

 

Securities Brokerage Fee Income of Banking Institutions

In 2011, 532 bank holding companies (BHC) recorded $36.8 billion in securities brokerage fee income. The same year, 1,385 individual banks, many of which are subsidiaries of BHCs, earned $3.5 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.

 

SECURITIES BROKERAGE FEE INCOME OF BANK HOLDING COMPANIES AND BANKS, 2007-2011 (1)

  BHCs reporting securities brokerage fee income  Banks reporting securities brokerage fee income
Year Number Percent Income
($ billions)
Number Percent Income
($ billions)
2007 502 58.5% $16.47 1,624 21.1% $6.85
2008 510 57.8 18.09 1,585 21.1 7.01
2009 530 57.9 34.49 1,525 21.1 4.57
2010 526 57.7 35.10 1,447 20.9 3.85
2011 532 57.2 36.81 1,385 20.7 3.47

(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 Bank Securities Brokerage Fee Income Report - 2012.

 

 

TOP TEN BANK HOLDING COMPANIES AND BANKS IN SECURITIES BROKERAGE FEE INCOME, 2011

($000)

  Bank holding companies  Banks 
Rank Bank holding company (State) Securities brokerage
fee income
Bank (State) (1) Securities brokerage
fee income
1 Bank of America Corporation (NC) $9,930,486 JPMorgan Chase Bank, N.A. (OH) $1,274,000
2 Morgan Stanley (NC) 7,470,000 Bank of America, N.A. (NC) 390,927
3 Wells Fargo & Company (CA) 4,748,000 Wells Fargo Bank, N.A. (SD) 367,000
4 Goldman Sachs Group, Inc. (NY) 3,807,000 PNC Bank, N.A. (DE) 130,223
5 JPMorgan Chase & Co. (NY) 2,753,000 Citibank, N.A. (SD) 87,000
6 Citigroup Inc. (NY) 1,835,000 U.S. Bank N.A. (OH) 84,615
7 Bank of New York Mellon Corporation (NY) 1,465,000 The Bank of New York Mellon (NY) 80,000
8 Taunus Corporation (NY) 977,000 Chase Bank USA, N.A. (DE) 58,116
9 RBC USA Holdco Corporation (NY) 828,181 RBS Citizens, N.A. (RI) 56,676
10 Stifel Financial Corp. (MO) 806,673 State Street Bank and Trust Company (MA) 53,019

(1) Many banks are single institutions that are part of BHCs. NA=National bank (federally chartered).
    
Source: Michael White Bank Securities Brokerage Fee Income Report - 2012.

 

Wealth Management Activities of Banking Institutions

Wealth management activities include securities brokerage income, either alone or in conjunction with any of the following: investment advisory, banking and other services (i.e., securities dealer income); annuity commissions; and income from fiduciary-related activities.

In 2011, 532 bank holding companies (BHC) reported $118.4 billion in income from wealth management activities. The same year, 1,385 individual banks, many of which are subsidiaries of BHCs, reported $33.5 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.

 

WEALTH MANAGEMENT INCOME OF BANK HOLDING COMPANIES AND BANKS, 2007-2011 (1)

  BHCs reporting wealth management income   Banks reporting wealth management income  
Year Number Percent Income
($ billions)
Number Percent Income
($ billions)
2007 502 58.5% $90.25 1,624 21.1% $37.05
2008 510 57.8 86.21 1,585 21.1 37.00
2009 530 57.9 115.15 1,525 21.0 32.69
2010 526 57.7 116.87 1,447 20.9 32.04
2011 532 57.2 118.37 1,385 20.7 33.48

(1) Wealth management income is the sum of securities brokerage, annuity, fiduciary, and/or investment banking, advisory and underwriting fee incomes in those institutions where securities brokerage income is present and reported. 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-IPI Bank Wealth Management Income Report - 2012.

 

 

TOP TEN BANK HOLDING COMPANIES AND BANKS IN WEALTH MANAGEMENT INCOME, 2011 (1)

($000)

   Bank holding companies  Banks
Rank Bank holding company (State) Wealth management
income
Bank (State) (2) Wealth management
income
1 Morgan Stanley (NY) $17,937,000 JPMorgan Chase Bank, N.A. (OH) $7,686,000
2 JPMorgan Chase & Co. (NY) 17,830,000 The Bank of New York Mellon (NY) 4,651,000
3 Bank of America Corporation (NC) 17,042,891 State Street Bank and Trust Company (MA) 4,596,482
4 Goldman Sachs Group, Inc. (NY) 12,702,000 Bank of America, N.A. (NC) 2,270,454
5 Wells Fargo & Company (CA) 11,304,000 Wells Fargo Bank, N.A. (SD) 2,231,000
6 Bank of New York Mellon Corporation (NY) 9,505,000 Citibank, N.A. (SD) 2,126,000
7 Citigroup Inc. (NY) 6,834,000 The Northern Trust Company (IL) 2,035,164
8 State Street Corporation (MA) 5,551,415 U.S. Bank N.A. (OH) 994,005
9 Taunus Corporation (NY) 3,567,000 PNC Bank, N.A. (DE) 943,567
10 Northern Trust Corporation (IL) 2,170,075 Bank of New York Mellon, N.A. (PA) 483,746

(1) Wealth management income is the sum of securities brokerage, annuity, fiduciary, and/or investment banking, advisory and underwriting fee incomes in those institutions where securities brokerage income is present and reported.
(2) Many banks are single institutions that are part of BHCs. N.A.=National bank (federally chartered).

Source: Michael White-IPI Bank Wealth Management Income Report - 2012.

 

 

 

BANK SALES OF RETAIL MUTUAL FUNDS, 2007-2011 (1)

($ billions)

(1) Estimated.

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

View Archived Graphs

 

  • Bank sales of retail mutual funds dropped by 10 percent in 2011, after rising by 34 percent the previous year.