(September 14, 2004—CHICAGO, IL)--Double-digit asset growth in 2004 is producing strong earnings growth at fiduciary institutions, Trust Performance Report’s analysis shows. These results are in sharp contrast with the poor gross earnings of commercial banks, which are slashing expenses to maintain net income growth.
 

Compared to first-half 2003, gross fiduciary income increased 12 percent in 2004, far exceeding commercial banks’ gain of less than 1 percent in gross earnings, reports TPR, a sister publication of TRN. Total fiduicary assets are poised for their third consecutive year of growth. Asset growth in the first half of 2004 increased a healthy 17 percent. For the same period, commercial banks saw an 8 percent increase.
 

Return on assets is generally consistent with prior years, suggesting that trust institutions are boosting their fees. The strongest asset growth, especially among larger institutions, is in lower-income-producing assets such as corporate trust accounts, various agencies, and custody accounts.
 

For more coverage, see the upcoming issue of TRN.
 

-- Copyright ©2004 A.M. Publishing, Inc., Trust Regulatory News
 

No statement in this issue is offered as or should
be construed as legal opinion or advice, nor is any
statement or data intended as or should be construed
as an indicator of future performance.

************
To subscribe to Trust Updates go to
http://www.trustupdates.com and click
on "Free Subscription."
To unsubscribe click on "MySubscription."

************
To subscribe to Trust Regulatory News
or the Trust Performance Report
fax your request to 800-404-9222 or
call 800-404-2116.