Annuity fee income generated by U.S. BHCs rose 4% in the third quarter to $669.8 million, up from $644.2 million in third quarter 2008, according to the Michael White-ABIA Bank Annuity Fee Income Report. The 12.9% jump in third quarter earnings over second quarter earnings of $593.1 million helped drive annuity earnings up 2.5% in the first three quarters to $2 billion compared to $1.95 billion in the first three quarters of 2008. Just over 42% of BHCs sold annuities in the first three quarters, led by BHCs with over $10 billion in assets (71.4%), while short of 35% of BHCs with $500 million to $1 billion in assets sold annuities. BHCs with over $10 billion in assets saw their annuity earnings rise 3.5% to $1.89 billion to comprise 94.6% of total BHC annuity earnings. In contrast, annuity fee income fell 12.2% among BHCs with $1 billion to $10 billion in assets to $91.4 million, down from $104.2 million, and annuity earnings among BHCs with $500 million to $1 billion dropped 18% to $16.7 million, down from $20.4 million. San Francisco-based, $1.23 trillion-asset Wells Fargo & Co. ranked first in annuity fee income among all U.S. BHCs, despite reporting a 17.6% drop in these earnings to $504 million compared to $612 million during the same three-quarter period in 2008. New York City-based, $2.04 trillion-asset JPMorgan Chase ranked second, showing a 3.73% slide in annuity fee income to $258 million. Charlotte, NC-based $2.25 trillion-asset Bank of American Corp. ranked third, as annuity fee income, reflecting the Merrill Lynch acquisition, jumped 84.2% to $203.2 million. New York City-based, $767.3 billion-asset Morgan Stanley ($168 million) and Pittsburgh, PA-based, $271 billion-asset PNC Financial Services Group ($98.9 million) ranked fourth and fifth, respectively, with PNC reporting a 99% jump in annuity earnings, helped by its acquisition of National City Corp., the Michael White-ABIA Bank Annuity Fee Income Report shows. Among the top 10 BHC fee income earners, annuity revenue fell among five and achieved the highest growth (235.7%) at Birmingham, AL-based, $140 billion-asset Regions Financial, where $71.2 million in annuity earnings comprised 2.57% of the company’s noninterest income, the largest percentage among the top 10 earners, the White-ABIA Report reveals.
Wednesday, January 27, 2010
3Q BHC ANNUITY FEE INCOME RISES 12.9% OVER 2Q
Annuity fee income generated by U.S. BHCs rose 4% in the third quarter to $669.8 million, up from $644.2 million in third quarter 2008, according to the Michael White-ABIA Bank Annuity Fee Income Report. The 12.9% jump in third quarter earnings over second quarter earnings of $593.1 million helped drive annuity earnings up 2.5% in the first three quarters to $2 billion compared to $1.95 billion in the first three quarters of 2008. Just over 42% of BHCs sold annuities in the first three quarters, led by BHCs with over $10 billion in assets (71.4%), while short of 35% of BHCs with $500 million to $1 billion in assets sold annuities. BHCs with over $10 billion in assets saw their annuity earnings rise 3.5% to $1.89 billion to comprise 94.6% of total BHC annuity earnings. In contrast, annuity fee income fell 12.2% among BHCs with $1 billion to $10 billion in assets to $91.4 million, down from $104.2 million, and annuity earnings among BHCs with $500 million to $1 billion dropped 18% to $16.7 million, down from $20.4 million. San Francisco-based, $1.23 trillion-asset Wells Fargo & Co. ranked first in annuity fee income among all U.S. BHCs, despite reporting a 17.6% drop in these earnings to $504 million compared to $612 million during the same three-quarter period in 2008. New York City-based, $2.04 trillion-asset JPMorgan Chase ranked second, showing a 3.73% slide in annuity fee income to $258 million. Charlotte, NC-based $2.25 trillion-asset Bank of American Corp. ranked third, as annuity fee income, reflecting the Merrill Lynch acquisition, jumped 84.2% to $203.2 million. New York City-based, $767.3 billion-asset Morgan Stanley ($168 million) and Pittsburgh, PA-based, $271 billion-asset PNC Financial Services Group ($98.9 million) ranked fourth and fifth, respectively, with PNC reporting a 99% jump in annuity earnings, helped by its acquisition of National City Corp., the Michael White-ABIA Bank Annuity Fee Income Report shows. Among the top 10 BHC fee income earners, annuity revenue fell among five and achieved the highest growth (235.7%) at Birmingham, AL-based, $140 billion-asset Regions Financial, where $71.2 million in annuity earnings comprised 2.57% of the company’s noninterest income, the largest percentage among the top 10 earners, the White-ABIA Report reveals.
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