Banks and credit unions that use one of the industry's TPMs saw their collective wealth management revenue flatline last year at about $1.9 billion. This stopped a years-long trend that saw a 50% increase industrywide since the beginning of the decade, according to the current Kehrer Bielan Annual TPM Report that came out last month.
While the lack of top-line revenue growth is no doubt disappointing to banks and TPMS, the numbers reveal one piece of very good news: Fee-based business was up a significant 17%, year over year. Moreover, fee business has almost tripled since the beginning of the decade to $367 million, and has nearly doubled its percentage of overall revenue to 19%. Meanwhile, revenue from the sales of investment products fell 2.4% to $1.4 billion from the previous year, with mutual funds and variable annuities suffering the greatest declines.
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