Trust Updates Archive

Fiduciary Growth Cools in Third Quarter

(December 28, 2004, CHICAGO, IL)--Double-digit asset growth in 2004 continues to produce strong earnings at fiduciary institutions, Trust Performance Report’s analysis of the first three quarters of 2004 shows. However, growth in the second and third quarters has not kept pace with the robust first quarter. Growth at commercial banks has followed a similar pattern.
        Regardless of the slowdown, fiduciaries are poised for their third consecutive year of growth. Asset growth in the first three quarters of 2004 as compared to the same period in 2003 increased a healthy 16 percent. For the same period, commercial banks saw a 10 percent increase.
        Compared to the first three quarters of 2003, gross fiduciary income increased 7 percent, far exceeding commercial banks’ 0.36 percent decline in gross earnings for the same period. Net income at commercial banks grew by slightly better than 2 percent, well below growth in the first and second quarters. Cutting expenses continues to be a strong element of commercial bank net income growth.
        Fiduciary growth continues in all segments of the industry with institutions reporting more gains than losses, according to TPR’s analysis.
        While peer group 3, institutions with assets between $1 billion and $10 billion, has seen a steady decline in rate of asset growth in 2004, it has seen a small rebound in its ratio of managed assets to total assets.
        In the first three quarters of 2004, only peer group 2 institutions (assets between $10 billion and $100 billion) saw continuous gains in asset growth—10 percent in Q1, 16 percent in Q2, and 18 percent in Q3—as compared to the same quarters in 2003.
        Fiduciary return on assets is generally consistent with prior years, suggesting that trust institutions are boosting their fees.
        Trust Performance Report, a sister-publication of Trust Regulatory News, provides asset and income information on 1,500 trust institutions. Data sources include direct surveying and regulatory filings. Quarterly updates focus on the top 350 institutions. More information on TPR is available by going to Sample pages from the most current annual issue are available by going to

-- Copyright ©2004 A.M. Publishing, Inc., Trust Regulatory News
No statement in this issue is offered as or should
be construed as legal opinion or advice.

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