Swiss and other private banks must expect to lose an additional 25 to 30 percent of their revenue pools this year if the financial markets remain fragile, according to a new study by consultants Booz & Company.
Swiss and other private banks must expect to lose an additional 25 to 30 percent of their revenue pools this year if the financial markets remain fragile, according to a new study by consultants Booz & Company.
The wealth management industry is in the midst of a “perfect storm” and the flow of negative news has not stopped yet, it notes. Markets have lost value, several of the largest wealth managers have vanished, and most have seen their market capitalisation shrink to a fraction of their value only 12 months ago.
So far Switzerland’s private banks have weathered the storm relatively well, and most traditional private banks as well as the kantonalbanks and regional banks have benefited from ‘windfall’ net new assets (NNAs) inflows, as clients have left the big banks in large numbers, Booz analysts found.
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