Economy & Politics

The country’s private banks are attracting the richest

In the space of eleven years, assets under management in Luxembourg have grown. In 2019, they thus reached 466 billion euros. And the market share of very high net worth clients is now 58% of total assets.

In the space of eleven years, assets under management in Luxembourg have grown. In 2019, they thus reached 466 billion euros. And the market share of very high net worth clients is now 58% of total assets.

(ASdN with Nadia Di Pillo) – Here is finally good news. According to the latest publication from the Association of Banks and Bankers of Luxembourg (ABBL), assets under management in Luxembourg have more than doubled in eleven years. In 2019, they reached 466 billion euros, exceeding the forecasts of the previous survey, which estimated the total assets of the private bank at 450 billion euros.

Luxembourg therefore still attracts. And especially the richest. The proportion of clients with investable assets of 20 million euros has increased significantly. In 2019, the market share of very high net worth clients even reached 58% of total assets. Conversely, the share of customers with less than one million euros continues to decline: the assets of this customer segment represented 13% of total assets in 2015, and only 8% in 2019.


Illu - Finanzplatz - Place financiere - Luxembourg - Photo: Pierre Matge

Corinne Lamesch, President of Alfi, takes stock of one of the sectors among the important and dynamic pillars of the Luxembourg economy.


A change which imposes “new requirements on the private banking sector,” said the ABBL in a press release. New, more sophisticated products and services must therefore be developed “specifically for this segment in order to remain effective”, specifies the association.

As for the origin of customers, the figures are stable compared to 2018. The study shows that 85% of assets come from European customers, 21% live in Luxembourg and 17% in neighboring countries, namely France, Belgium and Germany.

Varied opportunities

And for the future, the forecasts are encouraging. “There are great possibilities for private banks,” says ABBL. Starting with Brexit, which confirms the attractiveness of the Luxembourg financial center.

Many financial institutions have in fact chosen the Grand Duchy as an anchor point to establish themselves in Europe or to serve their clients within the European market. In recent years, international private banks have managed their presence in the European market from Luxembourg, either by using the European passport or by setting up branches.


Wi, Bank ranking .Finanzplatz Luxemburg.Foto: Gerry Huberty / Luxemburger Wort

Present Monday before the Finance and Budget Committee, Claude Marx, director of the CSSF, ensures that the financial institutions of the Place have sufficient liquidity to respond to the consequences of future cessations of activities.


The covid 19 pandemic is nevertheless a major challenge for many private banks. Despite everything, many establishments are adapting and taking the necessary measures to maintain their profitability, said the banking association in its press release. Projects that can be achieved above all by accelerating digitization.

For the ABBL, however, another challenge remains, that of profitability. The growing increase in regulatory costs, the context of negative interest rates, the need to invest in operating systems and in new products and services are indeed having a significant impact.


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