BRENTWOOD, TENN., April 23, 2015 – Trust and investment management services have become increasingly important contributors to fee income for the banking industry as other traditional sources of fees have dried up in recent years, and a ranking by Bank Director magazine of the 50 U.S. banks that were the most successful at growing their trust operations in 2014 reveals there are two paths to growth --one through acquisition and one through organic means.
Banks focusing on wealth management typically command a higher stock price, and many of these banks have been highly-sought acquisition targets, such as the expected acquisition of City National Corp., of Los Angeles, by Royal Bank of Canada in fourth quarter 2015 for 2.6 times City National’s tangible book value. Trust income grew by 21 percent for the banking industry from 2012 to 2014, and accounted for 70 percent of wealth management income in 2014, according to data from Bank Intelligence Solutions, which created the ranking for Bank Director.
“A strong trust or investment management capability can bring balance to a bank’s revenue platform,” says Bank Director Editor Jack Milligan. “In today’s environment, where low rates and intense competition for loans has helped drive down the industry’s net interest margin, that can be very valuable.”
Bank Director limited the ranking to traditional banks with more than $1 billion in assets, and excluded institutions with a primary focus on trust banking.
The top 5 banks for trust growth are:
The results of the ranking are available in print and online in the second quarter 2015 issue of Bank Director, which also includes a cover story on the formula for a high performing bank board, what to do when your bank gets hacked, and the results of the 2015 Risk Practices Survey.
ABOUT BANK DIRECTOR
Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through its quarterly Bank Director magazine, executive-level research, annual conferences, and its website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Bank Director is headquartered in Brentwood, Tennessee.
Source: Bank Director magazine
Contact: Emily McCormick, director of research, (615) 777-8471, firstname.lastname@example.org
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