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Fiduciary Earnings Expenses Assets Trust Performance Report trust companies 2018 banks revenue expenses break even trust divisions A.M. Publishing peer comparison financial institutions trust companies BlackRock Wells Fargo State Street US Bank Northern Trust Chase Citibank Bernard Garbo Stronger Revenue and Asset Growth Leads to Lower Stress, with Some Exceptions

(Dec. 11, 2018 --Chicago, IL) -- Revenue performance outpaced expense increases at most trust operations, leading to increases in average profit margins, according to Fiduciary Earnings & Expenses 2018.. Performance varied based on the size and type of institution. National trust companies (NTCs) reported the strongest performance and bank trust divisions (BTDs) the weakest, with independent trust companies (ITCs) remaining the Goldilocks of the trust industry.

This is the first time in three years the trust industry has reported revenue increasing faster than expenses.

Fewer assets are required to break even, but many do not hit the mark, says Fiduciary Earnings & Expenses's editor, Bernard Garbo.

"A past rule of thumb was that a $100 million asset base was the break-even point," said Garbo. "Four years ago, FEE's analysis suggested that break even was closer to $500 million, with the exceptions of boutique independent trust companies. FEE's current analysis finds that the figure has dropped significantly to just under $300 million for bank trust divisions and independent trust companies. However, for national trust companies it remains just under $500 million."

Smaller independent trust companies maintain profitability by limiting trust services, according to FEE 2018. They have become boutique operations by offering specialized services or by limiting the focus of services provided.

While limiting services seems a proven strategy for higher profits, Garbo stresses that doing so may not be a good fit for all small institutions.

Fiduciary Earnings & Expenses 2018 compares performance of nearly 200 independent trust companies to that of bank trust divisions as well as national trust companies.

For sample pages of Fiduciary Earnings & Expenses 2018 go to For a special year end introductory price on both Fiduciary Earnings & Expenses and Trust Performance Report go to main page.

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. 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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