Trust Updates Archive

20070508--TRN, BofA Revenue Not Keeping Pace with Fiduciary Asset Growth


(May 25--Chicago, IL)
--Total fiduciary assets and revenues set new records in 2006, according toTrust Performance Report, TRN's sister publication. Revenue growth is not, however, keeping pace with assets, the report finds. Over the last five years, growth in fiduciary assets has surged 110 percent, while gross fiduciary revenue has increase 23 percent. TPR's findings are based on its survey of the top 1500 fiduciary institutions.

As of year-end 2006, the top 1500 institutions reported nearly $70 trillion in total fiduciary assets: $48.1 trillion in custody assets and $21.3 trillion in traditional fiduciary assets (personal trusts, employee benefit trusts, investment management agencies, and other noncustody fiduciary accounts).

TPR totals are more comprehensive than FDIC reported data, according to Christine Thompson, associate editor, Trust Performance Report 2007. While there is only a slight variance between TPR and FDIC totals as to custody assets, the variance in traditional fiduciary asset is $2.3 trillion, or more than 10 percent. The difference, says Thompson, is that the FDIC data is based on bank call reports, which excludes numerous state-chartered trust companies.

The 90-page report, which includes asset and income data for each of the 1500 institutions, can be ordered by contacting TPR@trustupdates.com.


For more on this topic, see the upcoming issue of Trust Regulatory News.


No statement in this issue is offered as or should be
construed as legal opinion or advice
.

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