Trust Updates Archive

Fiduciary Assets Trust Performance Report trust companies second quarter half 2018 bank assets revenue expenses trust divisions A.M. Publishing peer comparison financial institutions trust companies banks BlackRock Wells Fargo State Street US Bank Northern Trust Chase Citibank Bernard Garbo Revenue Growth Weakens as Does Asset Performance

(Oct. 03, 2018 --Chicago, IL) -- Three out of 5 trust institutions reported assets and revenue gains in the second quarter of 2018, albeit at fairly low rates, according to Trust Performance Report's quarterly update. Overall, institutions reported better results for the first six months of 2018, due to stronger first-quarter results.

Revenues grew by nearly 10 percent as compared to the first six months of the prior year; the majority of that growth was in the first quarter. Compared to the first quarter of 2018, trust institutions reported average revenue growth of 1.3 percent in the second quarter. The only peer group to report declines in revenue growth in the second quarter was Peer Group 1, those with assets over $100 billion. As with assets, most trust institutions reported gains, albeit small.

Revenue growth rates were expected to slow in 2018, due to significantly lower asset performance reported in 2018, compared to the prior year. The impact on revenues of poor asset growth may be tempered by trust executives more aggressively policing fee schedules.

Generating solid revenues is of course not a guarantee of profits. To assist trust executives in gauging their operations, Fiduciary Earnings & Expenses 2018 (TPR's sister publication) has expanded its analysis of productivity benchmarks.

For a complimentary copy of the second quarter report click HERE for a no-obligation trial subscription.

The worst average performance reported was by Peer Group 5 institutions, those with assets of under $500 million.

On a positive note, account growth improved. New-account growth averaged 6.2 percent in the first half of 2018, compared to 5.6 percent in the same period of the prior year. Managed accounts grew on average 6.7 percent, compared to a 2.6 percent growth in nonmanaged accounts

Profit margins remained fairly stable in 2017, according to Trust Performance Report 2018. However, there is some concern about profit-margin inflation, even among large trust institutions. For a complete analysis of this, see the upcoming Fiduciary Earnings & Expenses 2018. FEE now provides information on profit per employee as well as revenue per employee.

For sample pages of Trust Performance Report 2018, the annual report (published in May 2018) go to

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 1250 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, published in late October. 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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