KPMG-ABBL private banking report 2025

Strategic blueprint for Luxembourg private banks.

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.

download Download the full report

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

radio_button_checked

Record AuM victory

A EUR 94 billion year-on-year surge proves market confidence and solidifies Luxembourg's status as a pre-eminent wealth management engine.
radio_button_checked

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.
radio_button_checked

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.
radio_button_checked

The great pivot

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.