Trust Updates Archive
(July 12, 2012 --Chicago, IL) -- Both asset and revenue growth in 2012 are down from 2011’s double-digit rates., according to Trust Performance Report's quarterly update, a sister publication of Trust Regulatory News.
While assets grew nearly double the rate of revenue in the first quarter, the majority of asset growth was in nonmanaged accounts. This growth pattern leads to lower revenues as nonmanaged assets generate a significantly lower return on assets.
The growth in nonmanaged assets, and resulting lower revenues, pushed up the amount of assets needed to produce $1 of revenue.
In 2012, it is taking $118 more of total assets to generate $1 of revenue.
The good news is in traditional assets: personal trusts, investment management agencies, and employee benefit accounts, as well as foundation accounts (P.I.E.). To generate $1 of revenue requires only $20 more of P.I.E. assets in 2012.
Despite the less than robust growth figures that institutions reported in the first quarter of 2012, Trust Performance Reportis projecting that total revenues for 2012 will be up nearly 10 percent by year end. This projection is based on past performance.
Total number of accounts grew in the first quarter by more than 3 percent.
For a complete copy of the quarterly update Click Here.
Trust Performance Report 2012’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 best practices and benchmark data see Trust Performance Report 2012 and Fiduciary Earnings & Expenses 2012. For information on ordering 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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