Trust Updates Archive
Trust ROA Remains Stellar Contributor to Bank Profitability
(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