This is the first survey to focus only on bank-owned broker dealers, instead of banks and credit unions that work with third party BDs.
As the industry has matured, the metrics used to assess individual firm performance and monitor trends have lagged behind. At the urging of some key industry executives, Dr. Kehrer has identified several ways that industry benchmarks should be "modernized:"
- Focus on asset growth and composition as well as revenue and revenue growth.
- Create more sophisticated ways of assessing penetration of the institution's opportunity in investment services.
- Align investment services metrics with the metrics used by bank executives.
- Separate reporting for banks and credit unions and for institutions that own their broker dealer versus those that partner with third party BDs.
In addition to the metrics that Dr. Kehrer pioneered 25 years ago, this survey breaks new ground by providing new metrics on penetration of the institution's opportunity, efficiency ratios, advisor productivity, asset growth, asset and product composition, and key management metrics.
Twenty-nine of the largest 32 broker dealers owned by financial institutions participated in the survey. Click here for a complete list of survey participants.
We Offer Two Views Into Our Findings:
Dashboard provides a highly detailed overview of the investment services businesses in the 29 bank BDs that participated in the survey. The dashboard describes the range of experience across 50 key metrics, including penetration of the institution’s opportunity, profitability and efficiency ratios, advisor productivity, asset growth, asset and product composition, and key management and expense metrics. Click here for a complete list of the survey metrics.
The Bank Broker Dealer Study identifies the most important year-over-year trends in the data, including changes in business mix, production, and profitability; revenue penetration; advisor coverage; advisor productivity; and acquisition of new assets.
Arvest Asset Management
Associated Investment Services, Inc.
BancWest Investment Services, Inc.
BB&T Investment Services
BBVA Compass Investment Solutions
BMO Harris Financial Advisors
BOK Financial (Bank of Oklahoma)
Citi Personal Wealth
Commerce Brokerage and Insurance
Fifth Third Securities
First Citizens Investor Services
FTB Advisors (First Tennessee Bank)
Hancock Investment Services
Huntington Investment Company
Key Investment Services
M&T Investment Group
SunTrust Investment Services
Umpqua Invsetments Services
Unionbanc Investment Services
United Brokerage Services
US Bancorp Investments
Wells Fargo Investors
Wintrust Wealth Management
Penetration Of The Opportunity
- Deposit Revenue Penetration (gross revenue per million of institution's self-reported consumer deposits)
- Deposit Revenue Penetration (gross revenue per million of institution's FDIC non government deposits)
- Household Revenue Penetration (gross revenue per institution's retail household)
- Year-over-Year Revenue Growth
- Net Income Contribution Margin (net income before corporate G&A allocation as a percent of gross revenue)
- Pre-tax Net Income Margin (net income after corporate G&A allocation as a percent of gross revenue)
- Efficiency Ratio (direct and allocated expenses divided by revenue)
- Efficiency Ratio Fully Loaded (including G&A allocation)
- Deposit Profit Penetration (net income contribution per million of institution's self-reported consumer deposits)
- Deposit Profit Penetration (net income contribution per million of institution's FDIC non government deposits)
- Household Profit Penetration (net income contribution per institution's retail household)
- Gross Revenue per Advisor
- Advisor-Produced Revenue per Advisor
- Licensed Banker-Produced Revenue per Licensed Banker
- Investment Assets per Advisor
- Transaction Revenue per Advisor
- Advisory Revenue per Advisor
- Trail Commissions per Advisor
- Recurring Revenue per Advisor
- Life Insurance Revenue per Advisor
- Gross Revenue per FTE
- Investment Assets per FTE
- Referrals from Institution Staff per Advisor
- Deposit Referal Penetration (referrals per million in institution's FDIC non government deposits)
- Household Referral Penetration (referrals as a percent of institution's retail households)
- Advisor Deposit Coverage (millions of institution's self-reported consumer deposits per FA)
- Advisor Deposit Coverage (millions of institution's FDIC non government deposits per FA)
- Adivsor Household Territory (institution's retail households per FA)
- Adivsors per Sales Assistant
- Percent of Advisors who are Associate (Jr) Brokers
- Advisor Deposit Coverage
Asset And Product Composition
- New Assets as a Percent of Total Assets
- Managed Assets as a Percent of Total Assets
- Share of New Assets that are Managed Assets
- Transaction Revenue as a Percent of Total Revenue
- Advisory Revenue as a Percent of Total Revenue
- Trail Commissions as a Percent of Total Revenue
- Recurring Revenue as a Percent of Total Revenue
- Life Insurance Revenue as a Percent of Total Revenue
- Effective Financial Advisor Payout Rate
- Average Financial Advisor Compensation
- Direct Expenses per Financial Advisor
- Allocated Expenses per Financial Advisor
- Total Expenses per Financial Advisor
- Sales Force Comp as a Percentage of Total Revenue