Trust Updates Archive

Productivity per employee Forbes Fiduciary Assets Trust Performance Report trust companies bank trust divisions A.M. Publishing peer comparison financial institutions trust companies banks Bernard Garbo Asset Performance Increases, Revenues on Track to Set New Record

(Jan. 31, 2018 --Chicago, IL) -- Solid asset growth in 2017 is expected to significantly boost gross revenues for trust institutions in 2018, according to Trust Performance Report's analysis of third quarter data. Excluding custody, the majority of 2017's asset growth is in managed accounts, which have a higher return on assets. Fiduciary Earnings & Expenses, TPR's sister publication, found that profit margins remains fairly stable as does productivity (see below).

One in 7 trust institutions reported positive asset growth. Year-to-date asset growth is 8 percent, compared to 5 percent in the first half of the year.

Account growth, similar to asset growth, improved to just under 8 percent, up from 5 percent in the first half of the year.

More trust institutions reported gross revenue gains (1 in 6) than did asset gains. Revenue growth--while solid and higher in percentage terms than reported in the prior year--is slightly below that reported in the first half of 2017.

Fiduciary Earnings & Expenses 2017

Profit margins remain fairly stable, except among independent trust companies, which saw reported expenses rising faster than revenues, according to Fiduciary Earnings & Expenses 2017.

FEE is expanding its analysis of productivity benchmarks. Beginning with the current issue, the report provides information on profit per employee as well as revenue per employee.

Revenue per employee remains an important benchmark for assessing staffing needs, but profit per employee is considered a better benchmark for assessing productivity of talent. The reason for this is that increases in revenue do not always have a corresponding increase in profit. Forbes notes that 40 percent of Fortune 500 companies reporting increases in revenue see profits decline.

Without a metric that ties training to the bottom line, spending on training can easily be dismissed as nonessential, especially in lean times. Investment in training has been correlated with improved operating efficiency.

For a complete copy of the Trust Performance Report's quarterly report submit a trial order request by clicking here: Trust Performance Report

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 1400 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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