Banks Saw Record Wealth Management Growth in 2011
Stewart, Jackie, American Banker
Byline: Jackie Stewart
Bank holding companies overcame a lackluster fourth quarter to earn a record $118.4 billion in wealth management income in 2011, according to a new report.
Overall, wealth management income was up more than 1% from 2010, according to the Michael White-IPI Bank Wealth Management Report released Saturday.
The increase comes at a time when many banks are beefing up their wealth offerings to make up for declines in fee income from service charges on checking accounts.
"The fact that so many banks and [holding companies] registered growth in their wealth management revenue and have begun to expand further into the business underscores the tremendous opportunity wealth management presents to financial institutions," Jay McAnelly, the president of IPI, said in a news release.
The $810 million-asset Access National (ANCX) in Reston, Va., had the largest percentage increase in wealth management fee income; in 2011, it earned $568,000, up 1,036% from 2010. …