European Private Banking in 2018: Running for scale

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Favorable market returns helped to build up Western European private banking profit pools in 2017, but banks need to assert more control over their profit growth.

After a drop in profits in 2016, private banks in Western Europe rebuilt their profit pool, reaching a record high of EUR 15 billion in 2017. However, more than half of the profit growth since 2013 was the result of favorable returns in the financial markets rather than new business, and this reliance on market performance raises questions about the industry’s ability to sustain a growth in profits.

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Over the last five years, rising markets have allowed private banks to outgrow many of their problems. We believe, however,

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