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Fiduciary Earnings Expenses Metrics Benchmarks productivity banking profit margin best revenue model stress Pandemic breakeven Assets Trust Performance Report trust companies 2021 2020 2019 banks revenue trust divisions A.M. Publishing peer comparison financial institutions trust companies BlackRock Wells Fargo State Street US Bank Northern Trust Chase Citibank Bernard Garbo Key Findings: Fiduciary Earnings & Expenses 2021

(Dec. 08, 2021 --Chicago, IL) -- The following are key findings in Fiduciary Earnings & Expenses 2021's.

Fiduciary Earnings & Expenses 2021 compares performance of some 200 independent trust companies to that of bank trust divisions as well as national trust companies.

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Best Revenue Model — the survey data continue to show that the highest-profit-margin institutions, regardless of institution size or type, limit the product lines they offer.

Stress Varies — trust executives at banks are nearly twice as concerned as those at independent trust companies (ITCs) about reaching new account targets. Overall, trust executives at independents reported considerably less stress about meeting revenue and other targets.

P.I.E. Preferred — of those institutions that specialize versus being full-service institutions, the over-whelming majority focus on a combination of personal trusts, investment management agencies, and employee benefit trusts (EBTs), or P.I.E. All high-profit-margin ITCs continue to limit their focus to P.I.E. High-performing large ITCs focus primarily on EBTs, while their bank counter-parts focus on custody.

P.I.E.-to-Custody Revenue Efficiency — the metric "assets needed to generate $1 of revenue" suggests that bank trust divisions (BTDs) remain the least homogeneous in the industry. However, their metrics have been improving. ITCs remain the most homogeneous. Homogeneous refers to how uniform the revenue rate for services are among all institutions regardless of size.

Revenues and Expenses—The industry reported average revenue growth rates of 5 percent for revenues and 2 percent for expenses. This reflects activity among BTDs more than it does among independents and national trust companies (NTCs). Independents reported average growth rates of 6 percent for revenues and 4 percent for expenses.

Profit Margins — these inched up, which would be expected with revenues on average increasing faster than expenses. Independents are considered the best barometers of "true" performance for the industry, as their expenses are direct while some expenses of BTDs are often allocations from their commercial bank.

Productivity — the data suggest that most of the industry is performing well. Independents continued to report significantly higher profit per account officer and profit full-time-equivalent (FTE) employee than other institution types. Independents also reported considerably fewer total employees than their bank counterparts did.

Expenses — salaries and benefits remain the single largest expense allocation. Percentage expense allocations for salaries were down from the prior year; however, the average dollar outlay remained fairly uniform. Historically, independents allocate more to marketing budgets than their counterparts do. Until 2020, BTDs and NTCs were seeking to catch up. In average dollar mar-keting outlays, BTDs and NTCs lagged considerably behind independents.

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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 1200 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 compares 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."

Data Files -- a spreadsheet version of Trust Performance Report is available. For more information on rates, please visit … Discounts apply for subscribers to Trust Performance Report. For more information on discounts, please email:

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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