Trust Updates Archive
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(October 9, 2024 --Chicago, IL) -- Asset gains over the last two year finally translated into gross revenue growth for the overwhelming number of trust institution in the first half of 2024, according to Trust Performance Report 2024's semiannual update. To obtain the complete semiannual report, as well as see the sample pages of Trust Performance Report 2024 see the "Sample Copies" link below. Trust institutions reported average revenue growth of 10 percent, compared to the same time last year. Nearly nine out of every ten reported gross-revenue gains in the first half of the year, compared to the same time period last year. The industry's largest institutions continue to report the poorest performance Asset Growth More Uniform, Few Outliers Asset growth rates were less volatile in the first six months of 2024, than in 2023 Year-over-year average asset growth for bank trust divisions was 7 percent as a mean, with a median of 10 percent. This reflects growth when comparing June 30, 2023 to June 30, 204 data. The difference between the industry mean and median is significant. This difference suggests, and the data supports, that several trust institutions reported large asset declines in 2023. Year over year twice as many trust institutions reported asset declines of greater than 25 percent in 2023 than reported such declines in the first six months of 2024. Equally, there were fewer outlying asset gainers in the first six months of 2024, than in 2023. Nearly three times as many trust institutions reported asset gain greater than 25 percent in 2023 than did in the first six months of 2024. The driver of this asset volatility among high asset gainers and decliners is not clear from the data. What is clear is that for the current reporting period, the median growth rate is a better indicator of industry performance when comparing year-over-year data. FEE 2024: Productivity Remains Mixed Industry productivity continued to be mixed in 2023, according to Fiduciary Earnings & Expenses 2024's preliminary findings. FEE, a sister publication of TPR, is expected to be released in early December. Productivity is measured by profits per employee as well as revenues per employee. The metric remains an important benchmark for assessing staffing needs. However, profits per employee is considered a better benchmark for assessing productivity of talent, because increases in revenues are not always accompanied by increases in profits. Follow us on LinkedIn ************************************ DATA BOOKS Trust Performance Report -- the annual data book, published in May, provides both industry and peer group performance data by assets, gross revenue, net income, and account category .. as well as 3-year growth data and account balance average by account category. Subscribers receive semiannual updates. TPR findings are based on its annual survey of the top 1100 fiduciary institutions. For more best practices and benchmark data see TPR. For information on ordering click here or the link below. Fiduciary Earnings & Expenses -- the 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 http://trustupdates.com/Subscribe/Data_Files/ … Discounts apply for subscribers to Trust Performance Report. For more information on discounts, please email: dataorders@trustupdates.com ******************** No statement in this issue is offered as or should be construed as legal opinion or advice or as an indicator of future performance. To subscribe to Trust Updates or for a trial subscription go to http://www.trustupdates.com/Subscribe/Free_and_Trial/ To unsubscribe to Trust Updates go to • 1992-2024 Copyright© A.M. Publishing, Inc., Trust Updates |