Trust Updates Archive

2008 Banks Taxes IRS Supreme Court Fiduciary Assets Increase Nearly 20% in 2007, Income Up 12.5%

March 18, 2008--Chicago, IL)--For the sixth consecutive year, fiduciary institutions have seen record total asset and income growth, according to preliminary analysis by the Trust Performance Report, a sister publication of TRN. Assets held in nonmanaged accounts led growth.

Totalfiduciary assets grew by 19.2 percent in 2007; the Dow Jones Industrial Average increased by 7.2 percent during the same period. Excluding assets held in custody accounts, fiduciary assets grew by a still robust 13 percent. Industry averages generally reflect activity of the top 50 institution, which hold nearly 90 percent of all fiduciary assets and maintain large concentrations in custody assets.

In 2007, assets held in nonmanaged personal trusts and nonmanaged defined-benefit pension accounts both reported growth of 17 percent. Industrywide, total nonmanaged assets (excluding custody) grew by just under 17 percent. While total managed asset lagged, seeing only 3 percent growth, managed personal trust assets performed somewhat better -- 5 percent.

Strong overall asset growth translated to a new revenue record. Gross fiduciary revenues soared to $32 billion in 2007, an increase of 12.5 percent over the prior year.

According to the FDIC, net fiduciary earnings in 2007 increased by 22.3 percent, compared to the prior year. (For detailed analysis of income and expenses, see TPR's sister publication, the Fiduciary Income Report.)

TPR's annual report (available in early May) provides both industry and peer group performance data by assets, income, and accounts; subscribers receive quarterly updates. TPR findings are based on its annual surveys the top 1500 fiduciary institutions.

For more on this topic, see the Trust Performance Report.

No statement in this issue is offered as or should be
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