Luxembourg’s private banking sector bounced back impressively in 2022, overcoming the challenges of the previous year. With notable improvements in median profitability and cost-income ratios, the sector showcased its strength and adaptability. However, a deeper dive into the numbers reveals that much of this growth was fueled by a sharp increase in interest income.
The latest KPMG-ABBL Private Banking Report draws on 2023 financial data to provide key insights into Luxembourg’s private banking sector. For the fourth consecutive year, this study not only examines the sector’s performance and long-term trends but also offers a detailed comparison with Switzerland’s private banking market.
Discover how Luxembourg’s banks performed, how they compare to their Swiss peers, and what the future holds for the sector. Read the full report now!
Key trends
- EUR 14 billion in net new money in 2023.
- 7.3% increase in assets under management, rising from EUR 585 billion to EUR 628 billion in 2023.
- 77% of Luxembourg private banks increased their operating income in 2023.
- 8.5% increase in operating expenses in 2023, while commission income saw a slight decline of 1.2%. As interest rates decrease, rising costs will place additional pressure on banks' profitability.
- 42% of total costs in Luxembourg are personnel expenses, significantly lower compared to 70% in Switzerland.
Get full insights into 2023 private bank performance and dive deep into industry trends
- A detailed Luxembourg market analysis and its appeal to international players
- An overview of business and operating models in private banking
- Understanding private banking industry performance
- A comparative view on private banking in Switzerland
- M&A activity review and outlook for the next 12 months
