The oldest private bank in Luxembourg Banque Internationale à Luxembourg (BIL) announced H1-2013 financial results

• Clear return to profitability after only one year under the new shareholders
• Sustained growth of commercial activities
• Strong net income growth from 18 to 67 million euros as at June 30, 2013
• A 5% increase in the customer deposit balance sheet
• A 2% increase in loans, with a 3.1% increase in mortgage loans
• Solvency ratios exceeding regulatory requirements and an improved “stand-alone” rating from Fitch Ratings
• New Brussels branch operational since August 2013
• Stable employment; recruitment of 55 new staff

Luxembourg, 25-9-2013 — /EuropaWire/ — Banque Internationale à Luxembourg (BIL), the oldest private bank in Luxembourg, today announced its financial results for the first half of 2013.

The results for the first six months of the year confirm a solid performance from commercial activities as well as market activities benefitting from a particularly dynamic management.

With the strong support of its shareholders, Precision Capital, a public limited company under Luxembourg law with holdings in banking institutions, and the Grand Duchy of Luxembourg, BIL was able to focus fully on its growth, commercial development and geographic expansion ambitions for 2015.

Commercial development providing customer service

“Every day, BIL and its staff continually develop our commercial offering to guarantee the excellence and diversity of our products and services, in our customers’ interest”, emphasised François Pauly, BIL’s CEO.

For example: the bank’s web and mobile applications (BILnet and BILnet Mobile) were given a makeover in order to offer customers more comfort, ease and security in carrying out their banking transactions.

The bank has also installed a free Wi-Fi internet access service in all BIL branches, becoming the first bank in the financial centre to introduce such a service.

A new banknote deposit service called servibank+, available 24/7 and aimed at individuals and merchants, has been set up and it will be deployed throughout the BIL branch network by the end of 2013.

The bank has also changed its branch opening hours, in order to become even more accessible to its customers, becoming the only major bank in the country to welcome its customers until 7 p.m. on Wednesdays by appointment, for consultations limited to advice.

Private banking has strengthened its commercial offering aimed at its private and professional customers, with progressive products and services offered according to its customers’ needs.

BIL is also displaying new colours in terms of its private banking activity through a fresh communication strategy, rich in symbolism and based on a new theme: “Side by side your way”.

Strong growth in results
Retail, corporate and private banking operations have all turned in strong performances over the first half of 2013. Market activities and the management of the bank’s debt have also contributed to these excellent results.

As at June 30, 2013, BIL has posted a net income of EUR 67 million (EUR 91 million before tax), rising sharply compared with the June 2012 result (+EUR 49 million), an increase of over 270%.

Customer deposit balance sheets rose 5% to EUR 12.1 billion and credits increased 2.1% to EUR 9.8 billion. Despite a still difficult national macroeconomic environment, mortgage loans recorded an increase of 3.1% in Luxembourg.

As at June 30, 2013, BIL’s Basel II solvency ratios were at 18.75% for the capital adequacy ratio (CAD) and at 12.88% for the Tier 1 ratio, levels well above regulatory requirements (8% for the CAD and 4% for the Tier 1 ratio).

“Over the past six months, BIL’s commercial activity has proved to be particularly dynamic and has significantly contributed to these good results. As a universal bank of systemic importance in Luxembourg, support for the national economy and especially to companies and individuals remains, as in the past, at the heart of our activities. To date, the announcements on automatic exchange of information have not had a significant impact on private banking results. Nevertheless, one should expect a certain volatility of results from this business in the coming months. BIL, however, offers support and proposes solutions meeting the needs of customers facing these regulatory changes”, stated François Pauly.

Geographic expansion and the refocusing of non-strategic activities

Pursuant to the decisions of the Board of Directors announced last April, BIL has expanded its geographic presence and refocused some of its activities as part of its strategic growth plan for 2015.

Since the end of August 2013, Banque Internationale à Luxembourg, Belgique, SA, the new BIL branch in Brussels, has been fully operational and able to welcome its first customers and prospects. It will principally address private customers resident in Belgium, but also Independent Financial Advisers and Family Offices. This new branch is managed by Bernard Mommens, currently BIL’s Secretary General.

“The opening of a branch in Belgium is an ambitious project that BIL has been planning for several years and I am delighted that it was able to take form under the best conditions. BIL’s expertise in management and cross-border wealth structuring, enhanced by the numerous benefits of the Luxembourg offering, will enable our bank to stand out on the Belgian market”, explained Bernard Mommens.

On June 28, 2013, BIL created BIL Manage Invest SA, a Luxembourg subsidiary, in the context of activities governed by the AIFMD (Alternative Investment Fund Managers Directive). Faced with regulatory restrictions related to this new directive, BIL has taken the initiative of creating its own independent management company, acting for its own account but also for the account of third-parties. BIL Manage Invest currently has a staff of four.

At the end of June, BIL decided to sell the operational activity of BIL Finance, based in Paris, given the non-strategic nature of its activities.

Stable employment and new recruits for management

Over the past six months, employment has remained stable at BIL, with a workforce of 1, 950 employees in Luxembourg as at June 30, 2013. The bank has undertaken the recruitment of 55 young graduates and experienced professionals and management has gained two new recruits with the arrival of Ms Carole Wintersdorff, named the new BIL Secretary General, replacing Mr Bernard Mommens, and Mr Thierry López, appointed Head of Risk Management.

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About Banque Internationale à Luxembourg (BIL)
Founded in 1856, Banque Internationale à Luxembourg (BIL) is the oldest private bank in the Grand Duchy. Since its founding, it has played an active role in developing the main stages of the Luxembourg economy and currently operates in retail, private and corporate banking, and is also active on the financial markets.

With over 2,100 employees, the bank is present in financial centres in Luxembourg, Singapore (since 1982), Switzerland (since 1984), Denmark (since 2000), Belgium (since 2013) and in the Middle East (since 2005).

For more information, please contact:
Tom Anen
Banque Internationale à Luxembourg SA
69, route d’Esch, L-2953 Luxembourg
T: +352 4590 3879 – E: tom.anen@bil.com