The European private banking world is in the midst of a high-stakes battle for efficiency, talent and the future of ultra-high-net-worth capital.
In 2024, Luxembourg private banks delivered a defiant victory, achieving an unprecedented annual assets under management (AuM) surge of EUR 94 billion, the sector’s largest expansion in over a decade.
However, even as the sector delivers spectacular growth, it faces an industry-wide challenge: a fierce profitability squeeze. Rising costs, driven by non-negotiable investments in regulatory compliance, artificial intelligence and top-tier talent, are pushing cost pressures to critical levels. The window to act is closing, forcing institutions to leverage their structural advantages to maintain their competitive edge.
KPMG-ABBL private banking report 2025
Staying relevant in a shifting private banking landscape Luxembourg stands as the largest private banking center in the European Union.
This fifth edition of the KPMG-ABBL private banking report is the essential briefing for navigating this complex market, providing the strategic insights needed to stay ahead in the coming years.
It offers a deep-dive analysis of the Luxembourg private banking sector, coupled with a crucial competitive benchmark against the Swiss market. This is a must-have resource to understand precisely where Luxembourg holds its decisive advantages in the race for efficiency.
Key findings and strategic shifts
Mastery over costs The sector has proven its ability to manage fluctuating cost structures, consistently posting lower cost-to-income ratios than its Swiss competitors across the 2022–2024 period.
The urgency of fees The era of easy interest income is ending. Survival now depends on rapidly transitioning to robust commission and fee income, requiring enhanced advisory models and new product offerings.
A EUR 94 billion year-on-year surge proves market confidence and solidifies Luxembourg's status as a pre-eminent wealth management engine.
Scale is non-negotiable. Strategic consolidation is accelerating, forcing a relentless focus on the ultra-high-net-worth individual (UHNWI) segment to drive profitability and defensible margins.
The European private banking world is in the midst of a high-stakes battle for efficiency, talent and the future of ultra-high-net-worth capital.
In 2024, Luxembourg private banks delivered a defiant victory, achieving an unprecedented annual assets under management (AuM) surge of EUR 94 billion, the sector’s largest expansion in over a decade.
However, even as the sector delivers spectacular growth, it faces an industry-wide challenge: a fierce profitability squeeze. Rising costs, driven by non-negotiable investments in regulatory compliance, artificial intelligence and top-tier talent, are pushing cost pressures to critical levels. The window to act is closing, forcing institutions to leverage their structural advantages to maintain their competitive edge.
KPMG-ABBL private banking report 2025
Staying relevant in a shifting private banking landscape Luxembourg stands as the largest private banking center in the European Union.
This fifth edition of the KPMG-ABBL private banking report is the essential briefing for navigating this complex market, providing the strategic insights needed to stay ahead in the coming years.
It offers a deep-dive analysis of the Luxembourg private banking sector, coupled with a crucial competitive benchmark against the Swiss market. This is a must-have resource to understand precisely where Luxembourg holds its decisive advantages in the race for efficiency.
Key findings and strategic shifts
Mastery over costs The sector has proven its ability to manage fluctuating cost structures, consistently posting lower cost-to-income ratios than its Swiss competitors across the 2022–2024 period.
The urgency of fees The era of easy interest income is ending. Survival now depends on rapidly transitioning to robust commission and fee income, requiring enhanced advisory models and new product offerings.
A EUR 94 billion year-on-year surge proves market confidence and solidifies Luxembourg's status as a pre-eminent wealth management engine.
Scale is non-negotiable. Strategic consolidation is accelerating, forcing a relentless focus on the ultra-high-net-worth individual (UHNWI) segment to drive profitability and defensible margins.
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