Trust Updates Archive
(June 8, 2016 --Chicago, IL) -- Generating higher revenues remains the focus of trust and bank executives, which may have driven a large number of institutions to exit the business, according to Trust Performance Report 2016.
For those institutions continuing to offer fiduciary services, 2015 was a good year for the bottom line. While 4 out of every 5 trust institutions reported asset declines, 2 out of every 3 post revenue growth. Regardless of this strong revenue growth, 70 institutions exited the trust business in 2015. The overwhelming majority (84 percent) reported less than $500 million in total assets
In 2016, better than 1 out of 5 trust institutions plan to raise fees. Last year, 15% of trust institutions reported raising fees.
Trust Performance Report, a sister publication of TRN, surveys bank trust divisions, national trust companies, and state-chartered trust companies. The annual performance survey is conducted in March. Complete findings and analysis of 1400 institutions are published in TPR's 184-page report (for information on ordering or to receive sample copies, see below). Information is updated quarterly.
Trust industry assets shrank for first time in 8 years (down to $102 trillion). This was driven largely by declines among the industry's 3 largest institutions: States Street, BNY Mellon, and Chase.
Among Peer Group 1 institutions (those with assets in excess of $100 billion), TIAA-CREF, St. Louis, was the standout performer reporting asset growth of 212%. A company spokesman confirmed the growth was from new business. Even with TIAA's triple-digit performance, Peer Group 1 reported an average loss of better than 3% compared to the prior year.
Midsized institutions (those with assets between $1 billion and $100 billion) were the best performers. Those with assets between $10 billion and $100 billion performed slightly better than those with assets between $1 billion and $10 billion.
State Street’s $27 trillion in total assets (down $1 trillion from the prior year) continued to secure it the No. 1 spot for the third consecutive year. BNY Mellon remains a distance second at $23.8 trillion (also down $1 trillion).
The remainder of the Trillion Dollar Club is comprised of Chase ($20 trillion; down nearly $1 trillion), Citigroup ($12 trillion; unchanged), Northern Trust ($6.3 trillion, up by $200 billion), U.S. Bank ($2 trillion, up $100 billion), Wells Fargo ($1.7 trillion, down $100 billion), and Blackrock Institutional Trust ($1.1 trillion, unchanged).
For detailed information on trust industry statistics and benchmarks, see Trust Performace Report 2016.
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.
For Sample copies of both publications click here and then, on the web page, check "Trust Performance Report."
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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