Results of the CSSF/ABBL Private Banking Survey 2018

Size: px

Start display at page:

Download "Results of the CSSF/ABBL Private Banking Survey 2018"

Ethan Robert Garrett
5 years ago
Views:

Results f the CSSF/ABBL Private Banking Survey 2018 The ABBL Private Banking Grup Luxemburg (PBGL) cmpiled the results f its 11th annual Private Banking

Luxemburg Private Banking Key facts *FTE: Full Time Emplyee equivalent (Private Banking) **HC: Head cunt Evlutin f Private Banking assets under

This evlutin reflects the cnslidatin f the sectr at a respectable level, with AuMs nw standing at 35% abve the level reached befre the financial crisis

1 Results f the CSSF/ABBL Private Banking Survey 2018 The ABBL Private Banking Grup Luxemburg (PBGL) cmpiled the results f its 11th annual Private Banking Survey fr 2018 perfrmed, as in previus years, in clse cllabratin with the CSSF. Luxemburg Private Banking Key facts *FTE: Full Time Emplyee equivalent (Private Banking) **HC: Head cunt Evlutin f Private Banking assets under management (AuM) in Luxemburg was smewhat flat, rising by 0.7% cmpared t the previus year, reaching a ttal sum f 363,4Bln. This evlutin reflects the cnslidatin f the sectr at a respectable level, with AuMs nw standing at 35% abve the level reached befre the financial crisis in 2008 ( 271Bln). Member f ABBL a.s.b.l. R.C.S. Luxemburg: F352 EU Transparency register: Office address: 12, rue Erasme L-1468 Luxemburg Pstal address: P.O. Bx 13, L-2010 Luxemburg Tel.: (+352) Fax: (+352) mail@abbl.lu

AuM 2007-2017 In terms f gegraphic rigin f assets, the EU undubtedly remains the cre market (66% f ttal AuMs) whilst banks are further expanding their gegraphical reach within the rest f Eurpe

2 AuM In terms f gegraphic rigin f assets, the EU undubtedly remains the cre market (66% f ttal AuMs) whilst banks are further expanding their gegraphical reach within the rest f Eurpe (Switzerland and nn-eu Eurpean cuntries representing respectively 8% and 5% f AuMs) as well as beynd Eurpe (including Latin America and the Middle East). Gegraphic rigins f assets *Multi-jurisdictinal assets: these are accunts f custmers frm several cuntries r regins, r custmers gruped under life insurance cntracts (the accunts are pened in the name f the insurance cmpany). The 2018 Private Banking Survey als highlights a stabilisatin in the market structure twards higher client segments after a significant shift away frm affluent client segments since In this respect, we nte that client AuMs abve 5 millin have represented arund 60-65% f ttal Private Banking AuMs already since This is further evidence f the advantages f Luxemburg as an EU Private Banking hub ffering a high degree f stability cmbined with recgnised crss-brder expertise. Page 2 / 5

Client Segments accrding AuM 2014-2017 In terms f revenues, 2017 appears t have been a rather psitive year as a 5.5% increase was recrded verall by participants.

management fees) may, at least in part, be explained by favrable market rientatin as well as a certain degree f anticipatin f the practical impact f MIFID II n the banks business mdels and their

3 Client Segments accrding AuM In terms f revenues, 2017 appears t have been a rather psitive year as a 5.5% increase was recrded verall by participants. This develpment led by an increase in cmmissin incme (e.g. management fees) may, at least in part, be explained by favrable market rientatin as well as a certain degree f anticipatin f the practical impact f MIFID II n the banks business mdels and their investment services (mve twards fee-based advisry services). Given the cntinuing pressure n csts due t regulatry cmpliance requirements, investments in peratinal systems r new prducts and services, we nnetheless expect prfitability f private banks in Luxemburg will remain under pressure in the years t cme. Fllwing a slight decrease in the number f staff emplyed in the private banking sectr in the curse f the perid, this figure has nw stabilized at 6,659 headcunts, cvering all business and supprt functins. Evlutin f Private Banking Staff Page 3 / 5

4 Whilst evlutin f the Private Banking industry in Luxemburg is satisfying, a number f specific challenges remain t be addressed in rder t retain the cmpetitiveness f private banks in Luxemburg. Said challenges may as a matter curse als prvide pprtunities fr grwth and develpment. Luxemburg private banks currently face the fllwing main challenges: Strategic repsitining: In light f increasingly cmplex and cntinuusly grwing regulatry requirements as well as a difficult ecnmic envirnment, many banks have (and t a certain extent still are) taking far-reaching but necessary strategic decisins impacting their peratinal (a.. by increasing prcess efficiencies, reducing csts) and business mdels / service ffering (a.. by fcusing n cre individual markets, client segments and cuntryspecific prducts/services). As a result, we are witnessing, particularly since the beginning f 2018, a mre sustained M&A activity in the Luxemburg private banking market and may expect sme cnslidatin thrugh acquisitins r exits in the years t cme as financial institutins cntinue t adjust their strategies. Digital transfrmatin, which inevitably ges tgether in the shrt and medium term with substantial investments bth in (IT) systems as well as staff develpment, will cntinue t shape the future f the Luxemburg Private Banking industry in the years t cme, in particular with respect t client interactins and servicing, i.e. the client experience. We expect t see: Efficiency gains and prcess ptimizatin frm the extensive integratin f digital tls, ntably in the areas f KYC / client nbarding, advisry services and prtfli management (rb-advice), and client interactin (increased recurse t electrnic and vide cmmunicatin channels, e-signatures, bimetric identificatin, etc.); Extended use and integratin f new technlgies such as rbtics, AI and the blckchain technlgy; Enhanced fcus n data management (client as well as bank), mnitring, reprting and data security, as a key cmpnent f building client and supervisr trust; Disruptin frm new entrants in the payments and rb-advice areas, but synergies will cme frm partnerships r ther types f cperatin agreements with such actrs. The Private Banking sectr may benefit frm a number f Luxemburg specific pprtunities: The Luxemburg Private Banking Hub: Over the years, Luxemburg has becme a true Eurpean Hub fr majr financial institutins active in Private Banking. And we have seen this trend strengthening ver time (e.g. amng Swiss and French banking grups). Mre precisely: Banks licensed in Luxemburg perate acrss the EU, allwing them t leverage their Luxemburg platfrm either thrugh their wn branch netwrk r taking advantage f the Eurpean Passprt t prvide crss-brder financial services, and Sme private bankers have further extended their ffering by develping their Luxemburg hubs fr servicing ther grup entities lcated either in Eurpe r even utside f Eurpe (e.g. Middle East). Brexit: The attractin f the Luxemburg financial centre fr private banking activities was further cnfirmed by the recent annuncements made by a number f U.K.-based Page 4 / 5

5 institutins, amng which larger U.S. financial grups. These mves aim t ensure that ptential Brexit-related disruptin t business is adequately mitigated, and that clients can benefit frm seamless intra-eu servicing ut f the Luxemburg bking centre. Acknwledgements We wuld like t take this pprtunity t thank all 64 banks that participated in this 11 th editin f the CSSF / ABBL private banking survey Althugh perfrmed n a purely vluntary basis by the participants, the Survey achieved a market cverage exceeding 95% f the industry segment. Obtaining cnsistent statistics allws us t gain a better understanding f and btain reliable data n a regular basis t measure trends affecting private banking activities in Luxemburg. By Alain Hndequin, General Cusel Business Clusters and Fabi Mandrin, Adviser, Private Banking, Cmmercial Banking, Sustainable Finance Page 5 / 5

CAPITAL GROUP INC. Investor Presentation. December 2014

CAPITAL GROUP INC. Investor Presentation. December 2014 Investr Presentatin December 2014 Frward Lking Statements This presentatin cntains r may cntain certain frward-lking statements within the meaning f the Private Securities Litigatin Refrm Act f 1995, including