Slideshow: Large disparity among banks’ average advisors

BMO’s advisors are enjoying strong growth in assets under management (AUM) and productivity improvements, which appears to be powering a rise in compensation as well. Average AUM among BMO’s advisors was up impressively over the past year, to $67.6 million from $55.7 million in last year’s survey. This surge in AUM came with client numbers remaining virtually unchanged, resulting in a similarly robust rise in average productivity as measured by AUM/client household.

Scotiabank’s advisors already were operating much smaller books than their peers, and their average AUM was down further in this year’s survey. Scotiabank’s advisors surveyed reported having just $23.1 million in average AUM in 2018, down from $37.3 million last year. Furthermore, the banking channel’s youngest sales force now is even younger, with the average age declining to 35.8 years of age this year from 37.4 years old in 2017. Despite all this, average productivity has held up largely.

Average AUM for CIBC’s advisors remains tops in the banking channel. Last year, CIBC’s average advisor reported $138.9 million in AUM. This year, that was up to $152.1 million. Given the rise in average AUM and stable client numbers, average productivity was up from last year to a channel leading $523,019 in AUM/client household. Much of this performance may reflect the fact CIBC’s advisors are among the oldest, most seasoned in the business.

Although National Bank may be the smallest of the Big Six banks, its sales force in the retail investment business holds up relatively well. Average AUM among National Bank’s advisors were up to $63.5 million this year from $54.4 million in 2017. At the same time, average productivity was up smartly as well. Amid these gains, the average compensation among National Bank’s advisors is skewing higher as well.

RBC’s advisors remain among the banking channel’s top producers, with average AUM up slightly this year to $120.4 million from $117.3 last year. However, their reported client household numbers were essentially unchanged and their average productivity has dipped a little from last year as well. In turn, these advisors’ reported compensation was down a bit too. Yet, RBC’s advisors remain among the industry’s best paid, with just 26.1% earning less than $100,000 — good for the smallest proportion in the banking channel, according to IE’s survey.

Advisors with TD’s TD Wealth Financial Planning division look notably younger this year as the average age of those surveyed was just 41 years old, down from 44.3 years of age last year. This reported decline in average age also is reflected in their average industry tenure, which was also down year-over-year to 15.6 years from 17.8 years. As a result of this apparent turnover in the advisors population, average AUM was down to $73.9 million from $84.8 million in 2017. Average client household numbers were down too, but the average productivity was essentially unchanged from last year.