Drawing on data from the 2022 financial year, KPMG Luxembourg and the Private Banking Cluster of the Luxembourg Bankers’ Association (ABBL) have again joined forces to produce a new edition of the KPMG-ABBL Private Banking Report, which aims to identify significant trends as well as raising awareness of the sector’s different business models and their relative performances and weight.

From post-pandemic recovery to the new dynamics of global trade, against a backdrop of fears of escalating war, we examine in depth the current state, strategies and performance of the private banking sector. Many participants had hoped for brighter days in 2022, but the year brought its share of hardship and surprises, as well as demonstrating the industry’s resilience. While rising interest rates stemming from the high-inflation environment had a significant positive impact on banks’ profitability, they also squeezed the total value of assets, regardless of allocations to equities, bonds or real estate.

Despite a decrease of 2.3% in total assets under management, there was positive evidence of the attractiveness of Luxembourg with total net new money of EUR 31.7 billion, compared with EUR 45 billion for Swiss private banks. As the figures presented in this survey show, 2022 proved to be a solidly profitable year for the Luxembourg private banking sector, with net income up by 24%, mainly due to increased net interest margin.

In terms of M&A activity, the wave of consolidation we have seen in previous years remained in evidence throughout 2022 and into 2023. This phenomenon is driven by a variety of objectives, from strengthening market position and expanding operational scale to the recalibration of business models. Transactions in the sector remain driven by various key factors. For buyers, these include economies of scale, acquisition of new capabilities and access to new markets; for sellers, notably the recalibration of business models toward core activities, involving the strategic divestment of non-core assets.

In this volatile, uncertain, complex and ambiguous environment, we are convinced the third edition of this study is more important than ever, to shine additional light on the development, challenges and ambitions of the private banking sector in Luxembourg. Similarly to last year, we believe it makes sense to examine the development of our private banking neighbors — so we have also included the main findings from the annual private banking study Clarity on Swiss Private Banks, produced by KPMG Switzerland in collaboration with the University of St. Gallen, which was published in July 2023. We would also like to offer warm thanks to all the members of the Private Banking Cluster for their contributions and openness, and we hope the information in this report will provide you, the reader, with useful insights.

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Key trends


The Private Banking Cluster and KPMG Luxembourg joined forces for the third time to carry out a study assessing the development of the private banking industry in Luxembourg and the performance of Luxembourg-based private banks.

Data collection in May-August 2023

Anonymized questionnaires via the CSSF/PBGL

140 data items related to FY22

46 private banks, 100% of Luxembourg PB AuM

Further reading

Meet our team

Stanislas Chambourdon

Stanislas Chanbourdon

Head of Banking and Insurance
KPMG Luxembourg

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Anne-Sophie Minaldo

Anne-Sophie Minaldo

KPMG Luxembourg

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