In 2022, assets under management (AUM) for European private banks decreased 7% from the previous year, according to a recent McKinsey report. The decrease also reflects a one-point reduction in net inflows to 3%. Industry profits rose 1.7% to €22bn in 2022, a new peak driven by a relevant rise in net interest margins.
The survey has been conducted annually since 2003 and reviewed the recent financial results of more than 100 institutions. It illustrates how 2021 was a record year, while 2022 was characterised by more volatile markets. The 2010s were a decade of growth in financial markets which boosted the wealth of individuals in many parts of the globe. However, it now seems that overall growth in assets has stalled.
