Trust Updates Archive
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(January 14, 2026 -- Chicago, IL) -- Trust executives' concerns were not calmed by surging fiduciary gross revenues as they ranked meeting gross revenue targets as their number-1 concern for 2025, according to Fiduciary Earnings & Expenses 2025. However, this ranking reflected concern more among executives at bank trust divisions (BTDs) and national trust companies (NTCs) than independent trust companies (ITCs). ITC executives ranked litigation as their number- 1 concern and meeting revenue targets as number 4. FEE 2025 is based on A.M. Publishing's Annual Survey of Trust Assets. The survey was conducted in March and April of 2025. To obtain the complete report or see sample pages, see the links below. High-Profit-Margin Performers Fiduciary Earnings & Expenses' analysis continues to suggest that the best overall model of operation is that of ITCs. The uniformity ratio highlights that ITC are most focused on profits and the best at generating consistent revenues regardless of whether their focus is on traditional trust products or custody. The common thread among high-profit-margin institutions remained limiting their focus to three or fewer products or account categories. Most high-profit- margin institutions focused on P.I.E.* accounts (personal trusts, investment management agencies, and employee benefit trusts; includes foundation accounts, both managed and nonmanaged assets). However, several institutions, notably BTDs and ITCs, reported high profit margins by focusing their operations on custody accounts. Breakeven Increases and Cost Control Making a profit in the trust industry requires volume. In 2024, the average asset threshold needed to break even remains more volatile. Until 2023, the breakeven point had been declining for all institution types. NTCs continued to report the highest average breakeven point, an average of $555 million, which was down from $567 million. BTDs, for the first time since 2021, reported a decline in their average breakeven point. In 2024, it was $211 million, down from $280 million in 2023 and down from $240 million in 2022. ITCs, which for the past two consecutive years reported the lowest average breakeven point, reported a near doubling of their average breakeven. ITCs reported needing an average of $384 million, up from $205 million. Expense allocations, in terms of both average percentage and average dollar layout, varied notably for the third consecutive year. NTCs reported the highest weighted-average expense growth, 24 percent. BTDs' average expense growth was just under 6 percent, which more or less reflected the industry average because they dominate the industry in sheer quantity. ITCs reported average expense growth equal to the industry's 7 percent mean. Productivity Mixed For the third consecutive year, large and small BTDs reported the best productivity rates but not the highest profits or gross revenues per employee. Profits per account officer and full-time-equivalent (FTE) employee generally increased in 2024, with the notable exceptions of large and midtier NTCs as well as small ITCs. 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--Order Fiduciary Earnings & Expenses 2025 and receive both FEE 2025 (issued December 2025) and Trust Performance Report 2025 (issued May 2025) at a discounted rate. ************************************ 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." ******************** 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 • 1992-2026 Copyright© A.M. Publishing, Inc., Trust Updates |