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Fiduciary Assets Trust Performance Report trust companies bank priorities shift assets revenue expenses trust divisions A.M. Publishing peer comparison financial institutions trust companies banks Bernard Garbo Priorities Shift as Assets, Revenues, and Expenses Spike

(June 20, 2018 --Chicago, IL) -- The trust industry broke new records for assets and revenues in 2017. Trust assets at the close of 2017 totaled $122 trillion, for an average weighted growth of 11 percent. These new benchmarks have shifted priorities for some trust executives as well as making them rethink trust institution branding, according to Trust Performance Report 2018, which annually reports on the activity of the top 1250 trust institutions.

Trust Performance Report/A.M. Publishing's annually surveys bank trust divisions and independent trust companies. The survey is conducted in mid-March.

In A.M. Publishing's Annual Survey of Trust Assets, conducted in March 2018, respondents ranked reaching new account targets as their highest concerns. This was also the greatest concern in the 2017 survey. Nevertheless, the spike in assets and possibly the change in political administration seemed to shifted other concerns.

Trust executives in the most recent survey expressed a decline in concern about regulatory examinations; 60 percent of executives rated exam a moderate to high concern in 2018, down from nearly 70 percent in the prior year.

Lawsuits seemed to be of slightly greater concern, as was meeting capital requirements (though this was of greatest concern among independent trust companies).

Branding, or more particularly how institutions market or see themselves, shifted in 2018.

"Wealth management" is a designation not all trust institutions use when describing their services. In A.M. Publishing's surveys, historically, approximately a fifth of trust institutions have said that their trust activities are conducted as part of a wealth management business. In 2018, that percentage dropped to 15 percent. The offsetting increases were in trust activities conducted as subsidiaries of the bank or the holding company as well as traditional stand-alone trust divisions. The largest shift was among midtiers. Among smaller institutions, there was an increase in the wealth management designation.

Raising Fees Remains a "Third Rail" - - for Some

On average, nearly half of trust institutions that projected raising one or more fiduciary fee in March 2017, did so by year end. Bank trust divisions were less aggressive than independent trust companies.

Since 2015, the number of institutions forecasting fee increases has ranged from a fifth to a quarter among bank trust divisions. Among independent trust companies, the rate has ranged from a fifth to a third.

For sample pages of Trust Performance Report 2018, go to

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 1250 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 comparing 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.
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