Trust Updates Archive
(May 20, 2010 --Chicago, IL) -- Fiduciary revenues plummeted in 2009, in spite of assets rebounds, according to Trust Performance Report 2010, a sister publication of TRN.
* Led by growth in employee benefit and custody accounts, fiduciary assets rose by an average of 9 percent in 2009, while assets declined on average by 7 percent.
* The industry leader in personal trusts, including charities and foundations, remains the Northern Trust (ranked no. 5 overall). The industry leader in total assets remains BNY Mellon, followed by J.P. Morgan Chase, State Street, Citibank, and then Northern.
* The largest institutions, those with assets over $100 billion, saw some of the highest average asset gains (12 percent), but also reported the deepest dips in revenue (20 percent).
* Over the last five years, fiduciary institutions have reported average annual asset growth of 10 percent, while revenues lagged at 2 percent.
* While smaller institutions generate more net income per asset dollar than larger institutions, their costs per revenue dollar is higher.
Overall, trust bankers remain optimistic.
Fiduciary fees, generally computed as a percentage of assets, usually lag asset gains or losses. In 2008, when fiduciary assets plummeted by 16 percent, fiduciaries reported record annual revenues.
For 2010, better than 1 in 4 fiduciaries surveyed by Trust Performance Report say they plan to raise fees. Institutions with total assets under $1 billion remain some of the most aggressive.
Trust Performance Report 2010’s annual data book (published in May) provides both industry and peer group performance data by assets, gross revenue, net income, and account category; subscribers receive quarterly updates. TPR findings are based on its annual survey of the top 1500 fiduciary institutions.
For more performance and benchmark data see Trust Performance Report 2010. To order Click Here.
No statement in this issue is offered as or should be construed as legal opinion or advice or as an indicator of future performance.
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