Trust Updates Archive
(October 25, 2010 --Chicago, IL) -- Independent trust companies continue to post higher profit margins and returns on assets than do bank-owned trust divisions, according to the 2010 report of Fiduciary Earnings & Expenses (FEE). The exceptions are midtiers.
Unlike their bank-owned counterparts, independents tend not to be full-service fiduciaries. Their services are generally focused on three or fewer account categories, primarily personal trusts, investment management agency accounts, and employee benefit accounts. A select few, only 7 percent, are full-service and, in 2009, generated some of the highest profit margins. These were all midtiers --institutions with assets between $1 billion and $10 billion.
In contrast, 90 percent of bank trust departments are full-service, with 60 percent focusing on five or six account categories.
FEE 2010 provides industry and peer benchmarks for:
* Profit Margin,
* Return on Assets, computed on:
- gross revenue,
- net income, and
- 7 account categories,
* Asset Concentrations, and
- data services,
- insurance, and
FEE 2010 is based on direct surveying of some 200 independent trust companies. Benchmarks for these institutions are compared to bank-owned trust divisions: nationally chartered trust companies and bank trust departments.
For more information on FEE 2010, including how 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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