Definition:

Trust Income, Commissions & Fees refer to the earnings generated by financial institutions or trust companies from managing trust accounts and providing related services. This income includes fees for managing assets, executing transactions, and providing advisory services.

Examples

Examples of Trust Income, Commissions & Fees include fees charged for estate planning, asset management, executing trades on behalf of clients, and providing financial advice.

Formula:

Trust Income, Commissions & Fees = Total Fees Earned from Trust Services + Commissions from Transactions + Advisory Fees

How to use the metric:

This metric is used to assess the revenue generated by financial institutions from their trust and advisory services. It helps in evaluating the profitability and efficiency of these services, providing insights into the institution's ability to attract and retain clients.

Limitations:

The metric may not fully capture the quality of services provided or client satisfaction. It can also be influenced by market conditions, which may affect transaction volumes and, consequently, the fees earned.

Applies to:

This metric works best in industries such as banking, financial services, and wealth management, where trust services and financial advisory are core offerings.

Doesn't apply to:

It does not apply to industries like manufacturing or retail, where trust services and financial advisory are not part of the business model.

Summary:

Trust Income, Commissions & Fees are crucial for financial institutions offering trust and advisory services. This metric helps in understanding the revenue generated from these services, although it may not reflect service quality or client satisfaction. It is most relevant in the financial sector and less applicable to industries without a focus on financial services.