Caribbean trustcos predict 2011 revenue boom
Tuesday July 19 2011 | 12:16 AM

Trust companies' expectations for 2011 revenues differ sharply between geographical regions, a new survey of the worldwide trust industry has found.

Companies based in the Caribbean, Bermuda and Panama are by far the most optimistic. According to the Trust Company Benchmarks survey, commissioned by STEP, they are forecasting that revenues will leap by an average 30 per cent this year, on top of last year's 11 per cent growth.

Asian and multi-jurisdictional trust companies were also upbeat, though less so than the Caribbean. Firms in these jurisdictions believe they are better placed to source new clients from new markets than are firms in more mature, slower growth markets.

Elsewhere growth is expected to be modest at best. This particularly applies to the onshore UK trust industry which appears to be having a very tough time, with 2010 average revenues slightly down on the previous year, and growth this year projected to be well under 5 per cent.

Worldwide, smaller independent firms are projecting higher revenue growth than medium-to-large firms. But this trend doesn’t include trust companies owned by professional accountancy or legal services firms who are expecting this year's revenues to be 5 per cent down on 2010, on average. Study authors Spence Johnson commented that owner-managed firms [independents] consider themselves better placed to capitalise on their flexibility and transparency in the new post-financial-crisis world of weakened banking secrecy.