Which Banks Generate the Most Fee Income?

Snapshot Interactive

BRENTWOOD, TENN., October 29, 2013 — Bank Director magazine has released the inaugural Nifty 50: Top 50 Fee Income Banks, listing the 50 publicly traded banks that lead the industry in the generation of fee income as a percentage of their total income. The ranking is based on the banks’ average ratio of non-interest income to total operating revenue for 2011 and 2012. Investment banking firm Sandler O’Neill + Partners performed the analysis using SNL Financial data.

Fee income drivers fall into three categories, with most banks earning fee income from all three. Consumer-based fees, which have been cut at most banks due to federal regulations, include overdraft protection plans, checking accounts and debit card transactions. Fees generated from non-depository lines of business, like trust and private banking, investment banking, insurance brokerage and cash management services, comprise the second category of fee income. Loan fees, the third category of fee income, have been a strong driver of fee income for many institutions due in part to a robust mortgage refinancing market.

The top five performers among publicly traded banks are:

The Bank of New York Mellon Corp. (BK), a $356 billion-asset financial services company based in New York

State Street Corp. (STT), a $218 billion-asset financial services company based in Boston

Northern Trust Corp. (NTRS), a $93 billion-asset financial services company based in Chicago

HomeStreet Inc. (HMST), a $2.5 billion-asset financial services company based in Seattle, Washington

Flagstar Bancorp Inc. (FBC), a $13 billion-asset banking holding company headquartered in Troy, Michigan

The complete rankings are available in print and online in the 4th quarter 2013 issue of Bank Director magazine, which also includes the results of the 2013 Bank Board and Executive Survey. The issue features a story on the current state of the U.S. mortgage market, as well as an interview with Fifth Third Bancorp CEO Kevin Kabat.

Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through its quarterly magazine, executive-level research, annual conferences, and its website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Bank Director magazine is published by DirectorCorps, and headquartered in Brentwood, Tennessee.

Source: Bank Director magazine

Contact: Emily McCormick, director of research, (615) 777-8471 or [email protected]

Snapshot Interactive