Bank Fees Wells Fargo

Bank Insurance Fee Income Declines in 2012; Wells Fargo Tops Competitors.

Byline: Mark E. Ruquet,

Wells Fargo

 overtook Citigroup Inc. in 2012 to lead all banks in
insurance brokerage fee income,
according to

1. As stated or indicated by; on the authority of:

2. In keeping with:

 a recent report, but
overall insurance brokerage fee income for banks dropped 20 percent for
the year.

The “Insurance Fee Income Report” by
Michael White

 Associates says insurance brokerage fee income dropped fell to $6
billion for the year.

Citibank Inc. and
Bank of America

Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world.
 Corp. were responsible for the
majority of the fee losses. with a combined drop of over $1.5 billion in
insurance brokerage income between 2011 and 2012.

But despite the income drop from a select number of banks, Robert
Seda, president of Dowling Hales, a sponsor of the report, says many
bank-holding companies that built or acquired insurance-brokerage firms
experienced double-digit increases in brokerage income “signaling
an improvement in the financial health of their agencies, specifically
those agencies focused” in the P&C sector.

Wells Fargo’s brokerage-fee income dropped 4 percent on a
year-to-year basis to $1.56 million, but generated enough income to grab
the top spot among banks. Taking second place was BB&T Corp., which
reported a 33 percent increase in fee income to $1.25 million. Citigroup
dropped to third, with its fee income falling 45 percent to $1.17

Rounding out the top 12:

Co American Express Co.

Goldman Sachs

 Group Inc.

Co Regions Financial Corp.

Co Morgan Stanley

Co BancorpSouth Inc.

Co Discover Financial Services

Co First Command Financial Services

Co First Niagara Financial Group

Co Huntington Bancshares Inc.

The report examines data from all 7,083 commercial banks, savings
banks and savings associations and 1,053 large top-tier bank holding
companies and thrift holding companies. Bank holding companies of over
$10 million in assets have the highest participation in
insurance-brokerage activities at 80 percent. These banks produced $5.29
billion in insurance fee income in 2012, down 24 percent from in 2011.