Trust Updates Archive
(Jan. 14, 2015 --Chicago, IL) -- Total industry assets declined in the third quarter, compared to the prior quarter, while revenues continued their near five-year run of positive quarter-to-quarter growth, according to Trust Performance Report’s quarterly update. Year to date, averages continue to reflect an ascendant industry with revenues increasing by 9 percent and assets by 8 percent compared to the same quarter in 2013,
In the first nine months of the year, better than 8 out of 10 institutions reported positive asset growth, compared to the same time in 2013. Compared to the second quarter of 2014, total industry declined by $1.24 trillion, 80 percent of which was in custody assets. The only account category not reporting a decline was defined benefit trusts.
Regardless of the large dollar drop in custody assets, these accounts generated 38 percent of industry gross revenue and nearly half of new revenue growth. Traditionally trust accounts (personal trusts, employee benefits, and investment accounts, or P.I.E.) generated nearly half of total industry revenue and an impressive 66 percent of new revenue growth. The quirky math in new revenues results from reported losses in “other” fiduciary accounts, a catchall category.
For a complete copy of TPR’s quarterly update Click Here.
Revenue growth remains the industry's focus as reflected in industry conferences such as the American Bankers Association’s 2015 Wealth Management & Trust Conference, March 1 to 3. Pricing, profits, and driving sales are the topics of various sessions.
Along with revenues, productivity is up also. The new metric for performance, according to FEE 2014, 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 comparing performance among independent trust companies to that of OCC national trust companies and to bank trust divisions. 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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