CHAPEL HILL, N.C.–The typical bank-owned broker dealer generated $239,531 in revenue per BD employee last year, according to the 2014-2015 Kehrer Bielan Bank Broker Dealer Survey released this week.
"At a time when many banks are reining in hiring across the whole banking enterprise, this finding highlights the fact that broker dealer employees are a revenue machine," remarked Peter Bielan, a principal with the firm said in a statement. "If a bank were to hire one more person, it is useful to know where that person would create the most value.”
The study's dashboard includes benchmarks that assess performance against the bank's opportunity (e.g., gross revenue and net income relative to consumer deposits and the number of bank customer households), traditional brokerage benchmarks (gross revenue per Advisor and revenue on assets), and such banking metrics as efficiency ratio, year-over-year growth, and revenue and net income per FTE.
The data are drawn from 17 major bank-owned broker dealers.