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 * Expenses, - salaries, - rent, - furnishings, - data services, - marketing, - audits/exams, - insurance, and - other. 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. ************ To unsubscribe to Trust Updates go to To subscribe, click on the link below : • Trust Regulatory News • Trust Performance Report or • Fiduciary Earnings & Expenses Subscription request can also be sent to "circulation@trustupdates.com" or by calling 800-404-2116. -- 1992-2010 Copyright© A.M. Publishing, Inc., Trust Regulatory News |