Profits at private banks have shrunk by more than a third over the past year due to the credit crisis, according to a survey. Total assets under management have also come under pressure, falling by 16% to $14.5 trillion last year, according to a survey of global private banks by consultancy Scorpio Partnership.

Sebastian Dovey, managing partner at Scorpio, said: "With asset levels declining and cost-income ratios rising, this will place huge strain on the models of many wealth managers."