Bottom Line Shrinks at Trade Associations

WASHINGTON - In a year that was tough for bank earnings, trade groups suffered too.

Revenues - money brought in from dues, fees for services, and investment income - rose at 10 groups, including the Securities Industry Association, the National Association of Home Builders, and the American Bankers Association.

But revenues fell or were flat at eight groups, including the U.S. League of Savings Institutions, National Council of Community Bankers, and Financial Services Council.

"Flat is good," said Patrick Forte, president of the Association of Financial Services Holding Companies.

The Realtors and the ABA are the wealthiest financial trade groups by far, with revenues of $74.6 million and $57.3 million, respectively. The Home Builders takes third place with $33 million, and the U.S. League is fourth with $29 million in income.

The Credit Union National Association is fifth with $23 million.

Gauging by net worth, the Realtors in the largest group of the 20, with $68.8 million. ABA is second, with $55.8 million. The U.S. League and MBA are third and fourth, with $18.9 and $17.7 respectively.

Some trade associations mirroring the industries they represent - are shrinking as expenses rise and income falls. And it's mainly the smaller, specialized associations getting hurt.

Nine groups reported hits to their net worth, including the Financial Services Council (40%), AFSHC (39%), National Council (24%), Reserve City Bankers (20%), and Independent Insurance Agents (14%).

Others with shrinking net worth were Consumer Bankers Association (12%); U.S. League (6%); American Financial Services Association (5%).

Eleven groups grew. The Institute of International Bankers expanded its net worth 189% to $320,000. The National Association of Home Builders' net worth shot up 139% to $2.15 million.

The Securities Industry Association had 60% more assets in 1989, $4 million, than the year before. A 44% jump put the Conference of State Bank Supervisors' net worth at $371,000.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.