Camille Van Vyve
16 Dec 2024
Private banking in Belgium: why do investors remain loyal to traditional players?
The private banking sector in Belgium is dominated by traditional players, despite a constantly evolving market. According to a recent study published by De Tijd, traditional banks and private banking institutions collectively manage nearly 92% of the €500 billion in assets in Belgium. Yet, the performance of these institutions does not always live up to their reputation.
BNP Paribas Fortis: the heavyweight in wealth management
With €120 billion in assets under management, BNP Paribas Fortis Wealth Management is the undisputed leader in private banking in Belgium, according to De Tijd journal. This giant is well ahead of competitors such as KBC/CBC (€87 billion), Belfius (€78 billion), and ING (€48 billion). These figures are consistent with the results of 110 portfolio audits conducted by Easyvest in 2023, where 22% of the audited funds originated from BNP Paribas Fortis.
Delen Private Bank: the benchmark in private banking
Among the major private banking brands, Delen Private Bank stands out with €42 billion in assets under management. It is followed by Degroof Petercam and other well-known players like Mercier Van Lanschot or Puilaetco. Our audits confirm this trend: Delen accounted for 14% of audit requests and 15% of the funds analyzed.
High fees for modest returns
Based on the audits conducted by Easyvest in 2023, portfolios managed by traditional private banking players show, on average, a 2% performance gap compared to comparable index-based portfolios. In terms of fees, the contrast is even more pronounced: 1,6% annual fees for audited portfolios versus 0,8% for index-based management.
Why do Belgians stick to traditional institutions?
Despite these numbers, Belgian investors continue to favor prestigious institutions. This preference seems largely driven by emotional factors: family traditions, attachment to a renowned brand, or simple resistance to change.
Even the best struggle to outperform the market
It’s important to remember that even legendary investors like Warren Buffet often struggle to outperform the markets over the long term. It’s unrealistic to expect an active manager, whoever he or she may be, to consistently do better. Studies show it’s exceedingly rare for a manager to outperform the market for more than five consecutive years.
Index investing: a rational alternative
For long-term investors, index investing offers an effective and economical solution. It allows diversification of a portfolio while minimizing fees, thereby enhancing net returns over the long term.
How to evaluate your portfolio's performance?
Are you wondering about the performance of your private banking portfolio? Easyvest offers a free, no-obligation audit. By sharing your latest management report, we analyze your portfolio’s fees, performance, and risk compared to our index-based approach. This detailed analysis can help you make informed decisions about your investment strategy.
Is it time to rethink your private banking choice?
Private banking in Belgium remains largely dominated by traditional players—but at what cost? With high fees and often underwhelming returns, it may be time for investors to rethink their strategy. Index investing offers a credible, efficient, and tailored alternative for modern investors. You will find all the details of our investment approach here. If you want to know what your investment return with Easyvest could be, start a simulation without delay.