The number of banks selling investment products jumped 8% in the three-month period that ended June 30, but sales volume was down, according to a study by Veribanc Inc., Woburn, Mass.
The bank research firm, which derived its data from a study of bank call reports, said 2,569 banks reported gross sales of $105 billion in the second quarter. During the first quarter, 2,378 banks had investment sales of $111 billion.
Money market mutual funds accounted for most of the investment products business at banks. Banks sold $93.3 billion worth of the short-term investments in the second quarter, down 4% from $97.8 billion in the first quarter.
Sales of stock and bond mutual funds dropped 30%, to $8 billion in the second quarter, from $11.4 billion. But sales of annuities more than doubled, totaling $4 billion in the quarter that ended June 30, versus $1.9 billion in the three months through March 31. -- Debra Cope