Trust Updates Archive
(Dec. 19, 2013 --Chicago, IL) -- Weighted averages in the third quarter show an ascendant industry with revenues increasing by 9 percent and assets by 8 percent, according to Trust Performance Report’s. quarterly update. However, the asset base among industry giants in the third quarter shrank, resulting in total industry assets remaining flat. Regardless of this decline, revenues in total dollars grew by a respectable, unadjusted, rate of 6 percent.
In the first nine months of the year, 8 out of 10 institutions reported positive asset growth, compared to the same time in 2012. The industry’s largest institutions reported slower asset growth for the first nine months of 2013 than did the rest of the industry. This performance is distorted by BNY Mellon’s significant decline in assets; the institution remains a powerhouse, with some $24 trillion in total assets.
For a complete copy of the TPR’s quarterly update Click Here.
In 2013, one in five institutions reported a fee increase, according to Fiduciary Earnings & Expenses 2013, TPR’s sister publication. However, 85 percent of institutions say they are “policing” existing fee schedules better. Policing translates to enforcing existing fee schedules through auditing accounts for outdated discounts or other undercharges.
Accelerated growth seems to be trending. It is the topic of the American Bankers Association’s 2014 Wealth Management & Trust Conference in February. Pricing and profits will be covered in various sessions at the conference, click on the link for information.
Along with revenues, productivity is up also. The new metric for performance, according to FEE 2013, is profit per employee. In the trust industry, gross revenue per account officer is the yardstick increasingly used to measure productivity. Industry consultants say this captures year- over-year productivity of staff key in building client relationships.
Trust Performance Report -- 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 TPR. For information on ordering Click Here or the link below.
Fiduciary Earnings & Expenses -- annual data book is published in October. For information on ordering click here or the link below.
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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