Search
 

Recovery in Brokerage Business for CUs, Banks Thwarted by Revenue Drop

ST. PETERSBURG, Fla. - A drop in revenue for the securities brokerage business halted a recovery that kicked in during October 2004. Credit unions and banks saw a 17% decrease in brokerage revenue in November 2004, according to the Kehrer-Raymond James Community Bank Brokerage Study, a monthly survey of CUs...

By Staff Writer | Updated on January 25, 2005

ST. PETERSBURG, Fla. – A drop in revenue for the securities brokerage business halted a recovery that kicked in during October 2004. Credit unions and banks saw a 17% decrease in brokerage revenue in November 2004, according to the Kehrer-Raymond James Community Bank Brokerage Study, a monthly survey of CUs and banks with assets less than $4 billion. The Financial Institutions Division of Raymond James Financial Services, a wholly-owned subsidiary of Raymond James Financial provides third-party brokerage services to more than 260 CUs and community banks and conducts the survey. The index indicates that November’s brokerage revenue for credit unions and community banks was 10% above the level of November 2003, but 23% below the all-time high of 144 set in April 2004. The average gross brokerage revenue per financial advisor, including trail commissions and managed money fees, slumped 26% in November to $20,028. The average sales productivity was down 23% in November to $15,262, after improving 26% in October. Slipping market valuations of assets under management in November resulted in somewhat smaller trail commissions and managed money fees, said John Houston, national sales manager for the Financial Institutions Division of Raymond James Financial Services. “While the average monthly gross of financial advisors in community-based institutions is down 8% from a year ago, it is still 20% above the low point in advisor productivity of $16,723 in February 2003,” Houston said. Kenneth Kehrer, whose firm, Kenneth Kehrer Associates, conducts the monthly survey, pointed out that November’s brokerage revenue in smaller institutions was 52% higher than the low point in the Index in March 2002. -

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.