Trust Updates Archive
(January 6, 2025 --Chicago, IL) -- Breakeven asset threshold increased for all trust institution types, while productivity declined going into 2024, according to Fiduciary Earnings & Expenses 2024. The findings are based on responses to A.M. Publishing's 2024 Annual Survey of Trust Assets. To obtain the complete report or see sample pages, see the links below. Breakeven Increases and Cost Control Making a profit in the trust industry requires volume. The average asset threshold needed to break even has become more variable, depending on the type of institution. Until 2023, the breakeven point had been declining for all institution types. National trust companies (NTC) continue to report the highest breakeven point, an average of $567 million, up from $488 million. Bank trust divisions (BTD), for the second consecutive year, reported an increase in the average breakeven point: $280 million, up from $240 million. The smallest increase in the breakeven point is among independent trust companies (ITC), which report needing an average of only $205 million, up from $200 million Expense allocations, in terms of both average percentage and average dollar layout, varied notably for the second consecutive year. Concerns among trust executives at all institutions also varied widely. Controlling costs has replaced meeting account growth targets as trust executives' foremost concern, according to A.M. Publishing's 2024 Annual Survey of Trust Assets. ITC executives continued to rank controlling costs as their number-1 concern. Executives at BTDs and NTCs ranked controlling costs as their second highest concern, up from third place Productivity Generally Declines Profits per account officer and full time equivalent (FTE) employee generally increased, with the notable exception of large ITCs. BTDs reported increases in profits per account officer but declines in profit per FTE employee. Productivity ratios meanwhile eroded at ITCs and most BTDs. Only large and midtier NTCs reported improved productivity 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 SPECIAL OFFER--Pre-order Trust Performance Report 2025 and Fiduciary Earnings & Expenses 2025 and receive FEE 2024 as a complimentary bonus. Click on the links below ************************************ 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 1000 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 • 1992-2025 Copyright© A.M. Publishing, Inc., Trust Updates |