Actively contributing to a responsible and sustainable economy is integral to the role of the BNP Paribas Group in Luxembourg. This goal is now a strategic priority, and a culture of responsibility permeates the bank at every level. In its 2019 Responsibility Report, the bank sets out the impact of its business through its own operations and the products and solutions offered to clients.
Corporate social and environmental responsibility is more important than ever right now in the context of the global health crisis. Since the start of the lockdown, the bank has introduced measures to support those working to combat the crisis as well as those hardest hit by it.
To support charitable organisations in need of reinforcements, BGL BNP Paribas has permitted employees who were exempt from physical work presence to participate in public interest initiatives with approved associations.
The bank is also providing financial support to organisations assisting those most at risk during the crisis. As such, the bank will double every donation made by an employee to organisations in the Greater Region that are active in healthcare, assisting vulnerable populations or contributing to medical research.
Since the start of the crisis, the bank has provided 5,000 FFP2 masks and 30,000 surgical masks to the Ministry of Health. It is hosting Lux Future Lab start-ups free of charge for the duration of the health crisis and has reviewed its internal processes to ensure all suppliers are paid on receipt of the invoice.
As part of the emergency support plan rolled out by the BNP Paribas Group in over 30 countries, a total donation of EUR 100,000 has been split across three charities: the Hôpitaux Robert Schuman Foundation, Caritas Luxembourg and Stëmm vun der Strooss.
More recently, the bank launched its “Coronavirus Solidarity” initiative. Every time a client makes a payment using a BGL BNP Paribas credit card, the bank will contribute 10 cents to a fund set up to cover the housing costs of people facing financial hardship due to the coronavirus crisis and finding it hard to pay their bills or make everyday purchases.
Geoffroy Bazin, Chairman of BGL BNP Paribas’ Executive Committee and Country Head of the BNP Paribas Group in Luxembourg, stresses that “the COVID-19 health crisis has affected many aspects of our lives. We all need to act to restart economic activity while also taking the environmental emergency into account and investing in green technologies. While this crisis undoubtedly makes our social engagement all the more meaningful and legitimate, it also pushes us to go further to accelerate the transition to a more sustainable, fair economy. Social and environmental responsibility is not just an empty slogan: it’s an integral part of our business strategy and our Company Purpose”.
Press contacts BGL BNP Paribas:
Eliane Thines +352 42 42-62 64 eliane.thines@bgl.lu
Corinne Thill +352 42 42-30 85 corinne.thill@bgl.lu
Increase in net half-year profit
Robust growth in commercial activities
- Group consolidated net profit increases to EUR 182.6 million
- Net banking income up 9% to EUR 753.8 million
- Luxembourg Retail and Corporate Banking recorded 13% growth in average deposits and 8% growth in average loan outstandings compared with the first half of 2018.
- Following the integration of ABN AMRO Bank (Luxembourg) S.A., Wealth Management reported more than 15% growth in assets under management and 30% growth in average loan outstandings.
- Leasing International continued to expand its business in line with its strategy, with average loans outstanding up 6% and the development of new services.
- Overheads of EUR 396.3 million
- Investment costs rose due to the integration of new subsidiaries and continued investment in business development and the range of digital services.
- Ongoing expenditure remains in check and tied to growth.
- High solvency maintained
- Own funds amounted to EUR 6.1
- The solvency ratio reached 23.1% (under Basel III rules), well above the regulatory minimum.
On 5 September 2019, the bank’s Board of Directors examined the consolidated financial statements of BGL BNP Paribas under IFRS (International Financial Reporting Standards) at 30 June 2019.
Net banking income reached EUR 753.8 million, up 9% on the first half of 2018 (EUR 693.1 million). This increase is mainly down to the strong commercial dynamics across the various business lines, even amid lingering economic uncertainty.
Luxembourg Retail and Corporate Banking recorded 8% growth in average loan outstandings, boosted by an increase in mortgages and investment loans. Average deposit volumes grew by 13%, largely due to excellent inflows from corporate clients associated with the development of international cash management services.
During the second half of 2018, the Wealth Management business line absorbed the banking business of ABN AMRO Bank (Luxembourg) S.A. Compared with the first half of 2018, Wealth Management posted growth of more than 15% in assets under management. All segments are showing improvement in terms of net capital inflow. Thanks in particular to a bespoke range of financing solutions, Wealth Management’s average loan outstandings grew by 30%.
The bank took advantage of its status as a member of the international BNP Paribas Group to offer market products and services to its corporate and institutional investor clients through its Corporate and Institutional Banking business line. The business line’s 2019 targets have been confirmed.
Leasing International’s business operations, which are benefiting from the continued commercial development in strategic regions, recorded average loan outstanding growth of 6% owing to the development of new services for the benefit of clients and to several subsidiaries entering the scope of consolidation.
Overheads were EUR 396.3 million, up 6% on the first half of 2018 (EUR 375.2 million). This rise is mainly attributable to several subsidiaries entering the scope of consolidation (especially ABN AMRO Bank (Luxembourg) S.A.) and investments aimed at supporting the business development plan and digital transformation.
Gross operating income amounted to EUR 357.5 million, up 12% on the first half of 2018 (EUR 317.9 million).
Cost of risk stood at EUR 51.9 million, which is an extremely low level given outstandings in the region of EUR 33 billion.
The share of the net profits of equity affiliates (i.e. the share of net profits of subsidiaries in which the bank does not have a majority shareholding) stood at EUR 11.3 million, compared with EUR 3.1 million in the first half of 2018. This is mainly down to the rise in net profit at Cardif Lux Vie.
Group consolidated net profit for the first half of 2019 reached EUR 182.6 million, up 39% on the net profit as at 30 June 2018 (EUR 131.2 million), which had been affected by an exceptional tax cost following a raised estimate of the value of BGL BNP Paribas’ participation in BNP Paribas Leasing Solutions S.A.
At 30 June 2019, the balance sheet total stood at EUR 57.1 billion, 5% higher than at
31 December 2018 (EUR 54.6 billion).
High solvency maintained
The bank’s solvency ratio was 23.1% (under Basel III rules), well above the regulatory minimum. With the Group’s share of regulatory capital amounting to EUR 6.1 billion, BGL BNP Paribas is well placed to back its clients’ projects and investments.
Highlights of the first half of 2019
The first half of 2019 saw the beginning of the bank’s 100th anniversary celebrations. But it was also a time for innovation, with the launch of Genius and Apple Pay, and for social responsibility, with the bank launching the Act for Impact initiative and signing IMS Luxembourg’s Zero Single-Use Plastic manifesto.
100 ans d’histoire, 100 ans d’avenir
BGL BNP Paribas’ 100th anniversary was marked on 17 June 2019 with an official ceremony heralding the start of the anniversary celebrations, another highlight of which will be a conference on corporate responsibility and sustainable development in November.
Banque Générale du Luxembourg was established on 29 September 1919. Guided by its founding principle of serving the Luxembourg economy, the bank has actively contributed to the emergence and development of Luxembourg’s financial center. Now one of the country’s leading financial players, the bank offers a wide array of banking and insurance products and services to its retail, professional and institutional clients.
Bolstered by its history and membership in the BNP Paribas Group, and with the ability to innovate and adapt on its side, BGL BNP Paribas is in an excellent position to respond to major socio-economic challenges such as the digital transformation and the energy transition.
Launch of Genius, a personalised intelligent digital assistant
In March 2019, BGL BNP Paribas launched Genius, a fully digital service intended to help clients with the day-to-day management of their accounts. Using an artificial intelligence algorithm, Genius sends personalised messages in the form of advice, alerts and recommendations, enabling clients to better manage their budget and monitor spending. Genius is automatically available in the Web Banking app for smartphones at no additional cost, and can be disabled at any time.
Apple Pay available in Luxembourg since May 2019
On 21 May 2019, BGL BNP Paribas brought its customers Apple Pay, which is transforming payments with an easy, secure and private way to pay. With Apple Pay on iPhone, Apple Watch, iPad and Mac, customers can make fast and convenient purchases in stores, in apps and on websites. Apple Pay is easy to set up and users will continue to receive all of the rewards and benefits offered by credit and debit cards.
Apple Pay was welcomed with open arms in Luxembourg: 40% of iPhone-owning clients that make use of the bank’s digital services are already using this new mobile payment method.
Act for Impact, an initiative dedicated to social entrepreneurs
On 6 May 2019, BGL BNP Paribas officially launched Act for Impact, an initiative to provide solutions adapted for social entrepreneurs and to promote positive social and environmental action. On several different fronts, Act for Impact is working to meet the specific needs of these businesses. It includes a customised financial and non-financial offering, enabling social enterprises to benefit from concrete support at each stage of their development, whether in the search for financing or the realisation of their project.
Signature of IMS Luxembourg’s Zero Single-Use Plastic manifesto
Plastic waste is an ecological emergency to which BGL BNP Paribas has already begun to respond with a number of past initiatives. These include introducing the Ecobox (SuperDrecksKëscht®) in its restaurant areas, removing disposable cups, plastic cutlery and straws, and encouraging all employees to use reusable mugs, bottles and cutlery.
In an effort to take these actions even further, BGL BNP Paribas recently signed the Zero Single-Use Plastic manifesto launched by IMS Luxembourg of which the bank is a member. It was joined in this initiative by the other seven entities of the BNP Paribas Group in Luxembourg: Arval, Cardif Lux Vie, BNP Paribas Asset Management, BNP Paribas Securities Services, BNP Paribas Real Estate Investment Management, BNP Paribas Real Estate Advisory & Property Management and GreenStars BNP Paribas.
Best Bank in Luxembourg yet again
At the 2019 Euromoney Awards for Excellence, Euromoney magazine named BGL BNP Paribas Best Bank in Luxembourg for the fourth year in a row.
In early 2019, the bank also took top prize at the 2019 Euromoney Private Banking Awards, reinforcing its position as a leading private banking provider in Luxembourg. The bank also topped the rankings for philanthropic advice and social impact investing.
BGL BNP Paribas’ report for the half-year to 30 June 2019 is available in French at www.bgl.lu
About BGL BNP Paribas
BGL BNP Paribas (www.bgl.lu) is one of the largest banks in Luxembourg and part of the BNP Paribas Group. It offers an especially wide range of financial products and bancassurance solutions to individuals, professionals, businesses and private banking clients. At end 2018, BGL BNP Paribas employed 2,474 people in Luxembourg.
BGL BNP Paribas was named Bank of the Year 2018 in Luxembourg by The Banker and, in 2019, Best Bank in Luxembourg by Euromoney for the fourth year in a row.
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 72 countries, with more than 202,000 employees, of which more than 154,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
Press contacts:
Eliane Thines +352 42 42-62 64 eliane.thines@bgl.lu
Corinne Thill +352 42 42-30 85 corinne.thill@bgl.lu
A year of commercial growth and investment despite a challenging market environment
- Net banking income rose by 8% to EUR 1.447 billion
- Luxembourg Retail and Corporate Banking recorded a substantial 12% rise in average deposits and 8% rise in average loan outstanding relative to 2017.
- The Wealth Management business line performed well in a year dominated by the acquisition of ABN AMRO Bank (Luxembourg) S.A. Assets under management rose by 23% and there was a 10% increase in average loan outstanding.
- Leasing International continued to expand its business in line with its strategy, achieving strong growth in average sums outstanding of 16%.
- Overheads of EUR 763.9 million
- In addition to growth resulting from the absorption of new subsidiaries, the overheads figure reflects ongoing investment in strategic projects relating to commercial development and the provision of digital solutions for the banking and leasing divisions. Current operating expenses are entirely consistent with the development of the Bank’s activities.
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- Group consolidated net profit excluding minority interests came to EUR 338.9 million
- High solvency maintained
- Own funds amounted to EUR 5.9 billion.
- The solvency ratio stood at 22.6%, which is well above the regulatory minimum.
On 4 April 2019, the Ordinary General Meeting of Shareholders, chaired by Etienne Reuter, approved the consolidated financial statements of BGL BNP Paribas under IFRS (International Financial Reporting Standards) at 31 December 2018.
Net banking income reached EUR 1.447 billion, up 8% on 2017. Against a backdrop of low rates and particularly challenging market conditions in late 2018, commercial activity remained very strong in the various business sectors.
Luxembourg Retail and Corporate Banking achieved excellent growth in average loan outstanding of 8%, boosted by mortgages and investment loans. Average deposit volumes grew by 12%, largely due to excellent inflows from corporate clients associated with the development of international cash management services.
The Wealth Management business line, which absorbed the banking business of ABN AMRO Bank (Luxembourg) S.A. in 2018, posted growth of 23% in assets under management. All segments are showing improvement in terms of net capital inflow. Thanks to a bespoke range of financing solutions, Wealth Management’s average loan outstanding grew by 10%.
The Bank took advantage of its status as a member of the international BNP Paribas Group to offer a comprehensive range of products and services to its corporate and institutional investor clients through its Corporate and Institutional Banking business line. The business line was successful in achieving its goals.
Leasing international’s commercial development in strategic regions continued unabated. This generated average loan outstanding growth of 16%, which is partly attributable to several subsidiaries entering the consolidation scope.
Overheads were EUR 763.9 million, up 12% on 2017 (EUR 683.5 million). This rise is mainly attributable to several subsidiaries entering the consolidation scope, investments aimed at supporting the business development plan and digital transformation, and costs associated with absorbing ABN AMRO Bank (Luxembourg) S.A.
Gross operating income stood at EUR 683.1 million, up 3% on 2017 (EUR 661.8 million).
Cost of risk stood at EUR 60.4 million, i.e. still at a low level given outstandings in the region of EUR 32 billion.
The share of the net profits of equity affiliates (i.e. the share of net profits of subsidiaries in which the Bank does not have a majority shareholding), stood at EUR 1.1 million, compared with EUR 23.1 million in 2017. This decrease is primarily attributable to a change in company consolidation accounting, which previously used the equity method and now uses the global integration method.
Against a backdrop of persistently low rates and substantial investment, Group consolidated net profit stood at EUR 338.9 million in 2018 versus EUR 365.8 million in 2017.
At 31 December 2018, the balance sheet total stood at EUR 54.6 billion, which is 10% higher than 1 January 2018 and reflects the healthy development of business activities.
High solvency maintained
The Bank’s solvency ratio was 22.6%, which is well above the regulatory minimum. With the Group’s share of regulatory capital amounting to EUR 5.9 billion, BGL BNP Paribas’ strength makes it well placed to back its clients’ projects and investments.
Expansion of private banking activities
One of the key events of the past year was the acquisition of ABN AMRO Bank (Luxembourg) S.A. Announced on 20 February 2018, the transaction was finalised on 3 September 2018 and the bank’s staff and clients were transferred in early November. Amid consolidation on the private banking market, this acquisition enabled BGL BNP Paribas to make its position in Luxembourg even stronger.
In February 2019, BGL BNP Paribas’ standing as a leader in the private banking sphere was recognised by the magazine Euromoney, which ranked BGL BNP Paribas first in the “Best Private Banking Services Overall” category during the Private Banking Awards 2019. BGL BNP Paribas also came first in Luxembourg for its services to super affluent clients (USD 1 million to USD 5 million) and High Net Worth clients (USD 5 million to USD 30 million), and topped the rankings for philanthropic advice and social impact investing.
Major investments in client services, innovation and digitisation
The Bank constantly strives to offer a bespoke service tailored to the expectations and needs of the various categories of clients. A prime example of this is the Business Centre dedicated to self-employed professionals that the Bank set up to complement the existing offer of its seven Corporate Business Centres and four Private Banking Sites. It has also continued to invest in the digitisation of its channels, as part of an omnichannel approach that allows clients to interact with the Bank via their preferred channel, regardless of their geographical location.
In early 2018, BGL BNP Paribas was the first bank to launch a long-term vehicle leasing solution for retail clients on the Luxembourg market. The Private Lease solution, which is also available to self-employed professionals, offers clients an alternative to buying a car outright, as well as the chance to drive a new vehicle of their choice without going over their budget or worrying about unexpected fees. Developed in close collaboration with Arval Luxembourg, the Private Lease solution is the perfect example of the opportunities for innovation that arise within a large group.
Over the past year, the Bank also focused on the staff experience. For example, it set up an onboarding procedure that was key to the process of integrating former ABN AMRO Bank (Luxembourg) staff members. One aspect of setting up this procedure was providing the “Wëllkomm App” to help new staff members settle in at the company and support them throughout the integration process. In early 2019, the Bank’s efforts in favour of staff members received recognition in the form of the prestigious “Top Employer Luxembourg” award, which the Bank won for the fourth consecutive year.
A century of serving clients
2019 marks the 100th anniversary of the founding of BGL BNP Paribas. The deed of incorporation of Banque Générale du Luxembourg was signed on 29 September 1919. Created on the initiative of Société Générale de Belgique, the Bank’s mission was to “serve the southern region of the Belgian Province of Luxembourg and the Grand Duchy”.1
The Bank has held fast to this commitment over the decades by constantly developing its business in Luxembourg and establishing a branch network covering the entire country. Partner of choice for a client base composed of individuals, professionals and companies whose plans and investments it backs, BGL BNP Paribas is now an integral part of the socio-economic fabric and one of the country’s leading banks. It has made a significant contribution to the growth of Luxembourg’s financial sector and plays a major role in financing the Luxembourg economy.
Celebrations to mark the 100th anniversary of the founding of BGL BNP Paribas will begin in the week commencing 17 June 2019 and include an official ceremony as well as events for clients and staff.
Recognised expertise
In 2018, BGL BNP Paribas was named “Best Bank in Luxembourg” by Euromoney for the third year in a row, and “Bank of the Year” by The Banker. These two awards reflect the Bank’s capacity for transformation and innovation, which are key factors in successfully responding to the challenges faced by the bank of tomorrow and to offer solutions that meet changing client expectations.
[1] Belgique-Luxembourg, Les relations belgo-luxembourgeoises et la Banque Générale du Luxembourg (1919-1994), Gilbert Trausch, p. 284
BGL BNP Paribas’ Annual Report for the year to 31 December 2018 is available in French at www.bgl.lu
Following the agreement signed in February 2018 concerning the acquisition, by BGL BNP Paribas, of all the outstanding shares in ABN AMRO Bank (Luxembourg) S.A. and of its fully owned subsidiary ABN AMRO Life S.A., BGL BNP Paribas announces that the transaction was completed on
3 September 2018. As part of this transaction, the insurance company has been taken over by Cardif Lux Vie. The transaction was approved by the competent regulatory authorities.
“We are delighted that this major acquisition was successfully finalised within the agreed timeframe. The decision to further secure our Group’s footing in the private banking and insurance sectors in Luxembourg reflects our determination to play an active role in the development of the country’s financial sector. We are excited to welcome the new colleagues joining our Group, as well as our new clients, who will have access to the international Wealth Management and Insurance expertise offered by BNP Paribas,” stated Geoffroy Bazin, Country Head of the BNP Paribas Group in Luxembourg, Chairman of the BGL BNP Paribas Executive Committee and Chairman of the Board of Directors of Cardif Lux Vie.
“Amid the consolidation of the private banking market, this acquisition (representing EUR
5.6 billion in assets under management) allows us to strengthen our position in Luxembourg in the big European entrepreneurs segment, and enables us to create synergies”, explained Vincent Lecomte, Co-CEO of BNP Paribas Wealth Management. “We will thus be expanding the range of services so that this new client base can access our unique solutions – in particular private equity, asset management mandates and financing – and draw upon the Group’s expertise in investment banking and real estate.”
About BGL BNP Paribas
BGL BNP Paribas (www.bgl.lu) is one of the largest banks in Luxembourg and part of the BNP Paribas Group. It offers an especially wide range of financial products and bancassurance solutions to individuals, professionals, businesses and private banking clients. At end 2017, the BNP Paribas Group employed around 3,700 people in Luxembourg, of which 2,379 at BGL BNP Paribas.
In 2018, the international magazine Euromoney named BGL BNP Paribas “Best Bank in Luxembourg” for the third year in a row.
About BNP Paribas Wealth Management
BNP Paribas Wealth Management is a leading global private bank and the largest private bank in the Eurozone. Present in three hubs in Europe, Asia and the US, over 6,800 professionals provide a private investor clientele with solutions for optimising and managing their assets. The bank has €364 billion worth of assets under management (as at 31 December 2017) and was awarded “Best Private Bank in Europe, in Asia and in the Western United States” in 2017.
About Cardif Lux Vie
Cardif Lux Vie is a Luxembourg insurance company that ranks among the major players in the market. Owned by a strong shareholder base (BNP Paribas Cardif, BGL BNP Paribas and Ageas), it benefits from a strong foothold both locally and internationally.
Cardif Lux Vie meets the specific needs of customers on several complementary markets: life insurance that caters for retail clients, collective insurance for businesses and international life insurance as a wealth structuring tool.
For private individuals and professionals in Luxembourg and the Greater Region, Cardif Lux Vie provides the bancassurance channels with global, integrated solutions with high added value. For high net worth international clients, the insurer operates under the freedom to provide services regime and has a large network of premium partners (Private Banks, financial institutions, brokers, etc.). It proposes customised and sustainable solutions using a comprehensive range of wealth structuring tools.
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including more than 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending.
BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
Press contacts – BGL BNP Paribas
Eliane Thines +352 42 42-62 64 eliane.thines@bgl.lu
Corinne Thill +352 42 42-30 85 corinne.thill@bgl.lu
Press contact – Cardif Lux Vie
Emilie Sansonetti +352 26 214 5521 emilie.sansonetti@cardifluxvie.lu
Press contact – BNP Paribas Wealth Management
Servane Costrel de Corainville + 33 6 74 81 98 27 servane.costreldecorainville@bnpparibas.com
Geoffroy Bazin has also been appointed as Chairman of the BGL BNP Paribas Executive Committee and becomes a member of the bank’s Board of Directors
Geoffroy Bazin has been appointed as Country Head of the BNP Paribas Group in Luxembourg with effect from 1 July 2018. At its meeting on 15 February 2018, the Board of Directors of BGL BNP Paribas also appointed Geoffroy Bazin as Chairman of the bank’s Executive Committee with effect from 1 July 2018. He will also become a director on the bank’s Board of Directors. Geoffroy Bazin will succeed Carlo Thill, who is retiring on 1 July 2018.
Geoffroy Bazin, aged 54, joined BNP Paribas in Paris in 1988 as part of the market activities organisation team, before moving to the General Inspectorate in 1993. From 1997 to 1999, he was jointly responsible for Market Back Offices, before becoming Head of Derivatives Back Offices Paris/London in 2000. He served as Managing Director of BNP Paribas Securities Services in Luxembourg between 2003 and 2010. In 2011, he became Chief Operating Officer and member of the Executive Committee of the Investment Solutions unit. He has been Country Head of the BNP Paribas Group in Switzerland and CEO of BNP Paribas (Suisse) S.A. since 2014.
The Chairman of BGL BNP Paribas’ Board of Directors, together with the members of the Board and the employees of the BNP Paribas Group in Luxembourg, would like to express their most sincere thanks to Carlo Thill for his dedication throughout his 40-year career at the bank. Carlo Thill joined the bank in 1978 and spent his first few years working in the Leasing, Factoring and Credits departments. Thereafter, he was successively in charge of Domestic Credits, Risk Management, Marketing, Retail Banking, Commercial and Retail Banking, Human Resources and Corporate & IT Planning. In 1998 he joined the Executive Committee, which he has chaired since 2005. In 2013, he became Country Head of the BNP Paribas Group in Luxembourg. Carlo Thill will remain a member of BGL BNP Paribas’ Board of Directors, which he joined in 2000.
About BGL BNP Paribas
BGL BNP Paribas (www.bgl.lu) is one of the largest banks in Luxembourg and part of the BNP Paribas Group. It offers an especially wide range of financial products and bancassurance solutions to individuals, professionals, businesses and private banking clients. At end 2017, the BNP Paribas Group employed around 3,700 people in Luxembourg, of which 2,379 at BGL BNP Paribas.
In 2017, the international magazine Euromoney named BGL BNP Paribas “Best Bank in Luxembourg” for the second year in a row.
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including more than 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
Press contacts:
Eliane Thines +352 42 42-62 64 eliane.thines@bgl.lu
Corinne Thill +352 42 42-30 85 corinne.thill@bgl.lu
- Turnover for 2017 came to €2.8 billion (up by 19.6%)
- Assets under management at year-end 2017 stood at €22.2 billion (up by 10.6%)
- Net profit before tax[1] reached €52.9 million (up by 0.4%[2])
For the year ended 31 December 2017, Cardif Lux Vie posted a turnover of €2.8 billion (up by 19.6% on 2016) and took second place in the ranking of Luxembourg insurance companies in terms of intake[3]. The Company also posted €22.2 billion of assets under management and net income before tax of €52.9 million, up by 0.4% on 20162. Cardif Lux Vie thus confirms its position as a major player in the Luxembourg life insurance market, with sustained growth in activity in all its business lines, namely Wealth Management, Retail and Employee Benefits.
In this context, Cardif Lux Vie continues to implement its 2020 transformation plan, putting its clients, partners and employees more than ever at the centre of its development strategy.
Wealth Management: 72% of inflows were invested in unit-linked funds
Cardif Lux Vie confirmed the solidity of its positioning based on the international diversification of its clients’ home markets, the markets on which its products are distributed, partners, and solutions proposed. The Wealth Management business registered an increase of nearly 22% in gross inflows compared with 2016, with 72% invested in unit-linked funds. Net inflows posted a record increase of 57% to more than €1.3 billion. Regarding unit-linked investments, the Company’s portfolio holds more than 4,700 Dedicated Internal Funds, deposited with around a hundred custodian banks and managed by more than 240 asset managers.
Retail: A record for Providence, up by 19%
Cardif Lux Vie’s Retail business line posted very good results in Providence, with inflows of €18 million, up by 19% on 2016. In Savings, inflows stabilised above €100 million a year, basically thanks to a unique offering in the marketplace (contract combining a wide range of unit-linked products with an attractive General Fund) and a Programmed Savings component up by 14% relative to 2016. In the context of its transformation plan, Cardif Lux Vie continues to invest in constantly reworking its offering to bring it ever more into line with its clients’ evolving expectations.
Employee Benefits: Good performance
The Employee Benefits (or Group Insurance) business line posted good results, with growth in recurring premiums in Savings (up by 2% on 2016) and continuous increases in inflows in Providence (up by 26% relative to 2016), which reached a volume of €11.5 million. Cardif Lux Vie thus proves its expertise in developing customised plans, and its leading position on the local market.
“Cardif Lux Vie had a record year in 2017, with excellent results in all its business lines, confirming its position as a major player in the Luxembourg life insurance sector, in a rapidly changing industry.
To respond to these challenges, Cardif Lux Vie continues to grow while transforming itself in order to continuously enhance the Client and Partner experience. In order to support an ambitious development of automation and digitisation during the coming months and years, substantial investments are being made in strategic programmes, including the change of our IT infrastructure.
The Company is working to implement a determined policy of social and environmental responsibility aimed at having a positive impact on society (notably through our investments in the General Fund aimed at financing the real economy) and allowing us to participate in the construction of a sustainable future while at the same time ensuring performance and stability,” said Jacques Faveyrol, CEO of Cardif Lux Vie.
| Key figures for the year ended 31 December 2017 | |
| 279 employees | |
| Turnover | €2.8 billion |
| Assets under management | €22.2 billion |
| Profit before tax[4] | €52.9 million |
About Cardif Lux Vie
Cardif Lux Vie is a Luxembourg insurance company positioned among the major players in the market. Held by solid shareholders (BNP Paribas Cardif, BGL BNP Paribas and Ageas), it has the advantage of strong roots both at home and abroad.
Cardif Lux Vie meets the specific needs of customers on several complementary markets: life insurance that caters for retail clients, group insurance for businesses and international life insurance as a wealth structuring tool.
For private individuals and professionals in Luxembourg and the Greater Luxembourg Region, Cardif Lux Vie provides bancassurance networks with comprehensive high added value solutions. For high net worth clients active internationally, the Company operates under the Free Provision of Services and has an extensive network of first-class partners (private banks, financial institutions, brokers, etc.) It proposes customised and sustainable solutions using a comprehensive range of wealth structuring tools.
[1] Net income before tax, according to Luxembourg local GAAP, giving pre-tax income of €63.5 million under group IFRS.
[2] Excluding non-recurring items.
[3] Source: ACA (Luxembourg Insurance Company Association) Report 2018.
[4] Net income before tax, according to Luxembourg local GAAP, giving pre-tax income of €63.5 million under group IFRS.