Strong growth in commercial activities
Launch of the 2022-2025 Strategic Plan

On 7 April 2022, the Ordinary General Meeting of Shareholders, chaired by Etienne Reuter, approved the BGL BNP Paribas consolidated financial statements for the financial year ended 31 December 2021, in accordance with IFRS.

Net banking income amounted to EUR 1,621.1 million, up 2% on 2020 (EUR 1,595.5 million). Excluding the base effect relating to a capital gain on property in 2020, net banking income rose 4% (up 7% versus 2019). This increase is the result of strong commercial momentum in the bank’s various business areas, thanks to the teams’ firm commitment to their clients.

Retail and Corporate Banking recorded 6% growth in average loan outstandings, boosted by an increase in retail loans and loans to companies. Average deposit volumes increased 16%, driven by both corporate clients and retail clients.

Thanks to the rise in markets and strong inflows, assets under management in Wealth Management were up 9%. Average loan outstandings rose 10%.

The recovery in the Leasing International business, which began in the second half of 2020, continued in 2021. New production increased by 13%, and there was a 5% increase in average outstandings.

Operating costs amounted to EUR 818.3 million, up 4% on 2020 (EUR 784.2 million). This increase can primarily be explained by growth-enhancing measures, particularly in leasing, transformation investments and the increase in contributions to various mandatory funds. Excluding the contribution to mandatory funds, operating costs were up 3% compared with 2020.

Gross operating income (EUR 802.8 million) was down 1% versus 2020 (EUR 811.3 million). Excluding the capital gain on property sold in 2020, gross operating income increased 4%.

Cost of risk amounted to EUR 76.6 million, down 41% versus 2020 and 24% versus 2019. It was low compared with outstanding loans of EUR 37 billion (21 bps).

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), amounted to EUR 12.9 million, compared with EUR 11.9 million in 2020.

Group consolidated net profit was EUR 394.3 million, down 1% versus 2020 (EUR 398.3 million). Excluding the impact of capital gains on property sold in 2020, net profit rose by 7%. It increased 14% compared with 2019 (EUR 345 million).

At 31 December 2021, the balance sheet total stood at EUR 62.1 billion, up EUR 5.5 billion from 31 December 2020 (EUR 56.6 billion). 

High solvency maintained

The solvency ratio was 23.5% (under Basel III rules), in line with 2020 and well above the regulatory minimum. With the Group’s share of regulatory capital amounting to EUR 6.4 billion, BGL BNP Paribas has a solid financial structure and is well placed to support the transformation and innovation of all of its clients.

Digital innovations in 2021

Major investments were made to enhance operational efficiency and improve the client experience:

  • Since May 2021, video identification has been offered to retail clients by BGLBNP Paribas for online onboarding, which means that accounts can be opened remotely in less than 24 hours with no need for clients to attend branches in person for identification.
  • The bank has also gradually set up electronic signatures, in partnership with LuxTrust, to enable its clients to submit their applications remotely, quickly, easily and securely.
  • To facilitate communication between clients and the bank, regardless of their preferred channel, BGLBNP Paribas continues to expand the range of features it offers. For example, bank cards can now be activated via the Web Banking app, and card thresholds can be increased and online payments activated/deactivated.
  • The bank has also introduced instant payments, making it possible to make instant transfers between BGLBNP Paribas accounts, as well as transfers to or from external institutions.

Sustainable finance and Corporate Social Responsibility at the heart of our actions

Faced with social, environmental and climate-related challenges, the principles of sustainable finance and corporate social responsibility play an essential role at every level of the bank’s activities.

The BNP Paribas Group has joined the Net Zero Banking Alliance, launched in April 2021 by the UN Environment Programme Finance Initiative (UNEP FI), and remains committed to combating climate change. This banking alliance is a decisive step in garnering support from the finance sector in favour of the climate.

BGL BNP Paribas is committed to supporting its clients’ ongoing transformation and projects, in particular by extending its product and service offering.

In 2021 the bank launched the green mobility loan, which is a low interest rate personal loan designed to finance the purchase of an electric or hybrid car and charging point.

Clients are increasingly concerned by the impact of their investments. BGL BNP Paribas offers them a wide range of socially responsible funds that have a positive impact on their areas of interest, such as water infrastructure or combating climate change.

From 7 to 11 June 2021, BGL BNP Paribas and BNP Paribas Asset Management invited all of the Group’s entities in Luxembourg to attend the “Green Week” organised by employees, for employees, to discuss various aspects of sustainable development and raise awareness on how to take action on a daily basis.  

Launch of the 2022-2025 Strategic Plan

For a number of years, banks have been operating in an environment marked by rapidly changing client expectations and behaviours, increasingly strict regulations, historically low interest rates and competition from new players. The health crisis confirmed the need to step up investment in digitalisation and new technologies.

BGL BNP Paribas has therefore prepared an ambitious development plan, in keeping with the 2022-2025 Strategic Plan that the BNP Paribas Group presented in early 2022, and which focuses on three key priorities: Growth, Technology & Sustainability.

The BGL BNP Paribas 2022-2025 plan places its clients and employees at the heart of its development initiatives, which centre around three key areas:

  • Modernised technological infrastructure, based on the Group’s technical and operational platforms, enabling overall performance to be improved.
  • Simplified and more sustainable offerings, as well as a digitised end-to-end client experience.
  • Greater balance between people and the digital world, thanks to solutions that enhance availability and increase access to expertise through new technologies.

To support these transformations, the bank is gradually deploying more agile ways of working. In agreement with social partners, it has developed remote working arrangements. The bank’s earning power made it possible to set up a participation bonus, as provided for by applicable statutory provisions. The implementation of the bank’s commitment to sustainable finance and corporate social responsibility will be stepped up.

***

Béatrice Belorgey, Chair of the Executive Committee of BGL BNP Paribas and Country Head of the BNP Paribas Group in Luxembourg, said: “In a rapidly evolving environment, thanks to the commitment of our teams in supporting our clients, BGL BNP Paribas posted strong performance in 2021. I wish to thank our employees for their engagement, and our clients for their continued trust. The objective of our 2022-2025 strategic plan is to make our bank even more efficient and agile, so as to act in the best interests of our clients, employees and the Luxembourg economy as a trusted, long-term partner.”

BGL BNP Paribas’ annual report for the year ended 31 December 2021 is available in French at www.bgl.lu

  • Assets under management of EUR 31.9 billion at end-2021 (+13.9%)
  • Revenue of EUR 3.4 billion in 2021 (+92.9%)
  • Net income[1] of EUR 50 million (+27.7%)

Cardif Lux Vie recorded solid results for 2021. Thanks to a diversified business model in terms of geography, solutions and distribution networks, the company continues to ramp up development of its activities and to invest on behalf of its clients and partners.

Cardif Lux Vie collected EUR 3.4 billion in premiums, representing a very substantial increase of 92.9% vs. 2020. Net inflows rose to over EUR 1.6 billion (of which 82.4% in units of account). The company generated net income1 of EUR 50.0 million (+27.7% vs. 2020). Assets under management increased and totalled EUR 31.9 billion (+13.9%)

In response to changing market requirements, Cardif Lux Vie has stepped up its transformation and is implementing major plans aimed at offering a new experience to clients and partners as well as speeding up the digitalisation process and enhancing operational efficiency.

Cardif Lux Vie has developed a responsible institutional investor policy in parallel, specifically by offering SRI-labelled units of account within its asset catalogues and by incorporating environmental, social and governance criteria into its strategies and investment processes within the General Fund.

Wealth Management

Cardif Lux Vie’s Wealth Management business posted a 98% year-on-year rise in revenue to EUR 3.3 billion, 71% of which is in units of account (UC).

In addition to a new service offering, 2021 was characterised in particular by an increased marketing effort; this was supported by concrete action on the digitalisation front, with fully virtual processes for partners in the e-Club platform. Business was also driven by the following developments in units of account: expanded distribution of the Specialised Insurance Fund and the External Funds range, creation of thematic Collective Internal Funds, and greater access to private equity.

Local market

Business in the Luxembourg residents market totalled EUR 169.3 million, which included EUR 74.8 million in inflows from retail clients.

In terms of distribution, business generated via brokerage networks grew 13%[2] while collaboration with the BGL BNP Paribas network was strengthened. Ongoing digitalisation of the distribution platform, as well as the full benefits of an automated, integrated operational model, should enable the company to develop new partnership-based opportunities going forward.

“The results achieved by Cardif Lux Vie against a challenging backdrop in 2021 confirm the soundness of its business model. We achieved a successful transformation by developing a rejuvenated, enhanced proposition aimed at our partners and clients. Today we are fully committed to pursuing this approach of ongoing improvement, creating value for our stakeholders and generating lasting growth. The company will be able to count on drivers such as data utilisation and deployment of the API-sation of the IT system, with a view to strengthening our leading position and making Luxembourg life insurance more accessible across all markets,” commented Christian Gibot, CEO of Cardif Lux Vie.

 

Key figures at 31/12/2021
Number of employees 318
Revenue EUR 3.4 billion
Assets under management EUR 31.9 billion
Net result1 EUR 50 million

 

 

 

About Cardif Lux Vie

Cardif Lux Vie is a Luxembourg life insurance company positioned among the major players in the market. Committed to its clients, partners and employees, the company provides high-quality solutions and services that contribute to sustainable and responsible growth.

In Luxembourg and the Greater Luxembourg Region, Cardif Lux Vie provides bancassurance and brokerage networks with high-value-added life insurance savings, retirement and protection insurance solutions for private individuals and professionals.

For high net worth clients active internationally, the company develops bespoke and sustainable open-architecture offers through an extensive network of first-class partners. Harnessing a comprehensive range of wealth engineering tools, Cardif Lux Vie’s planning solutions support clients and partners over the long term.

 

Press contact Cardif Lux Vie

Emilie Sansonetti                                                     emilie.sansonetti@cardifluxvie.lu

Press contacts BGL BNP Paribas

Eliane Thines                                                            eliane.thines@bgl.lu

Emmanuelle Humann                                             emmanuelle.humann@bgl.lu

[1] Net income after tax according to Luxembourg accounting standards, equivalent to pre-tax income of EUR 84.3 million under Group IFRS.

[2] Excludes Employee Benefits

Thanks to its Help2Help initiative, in 2021 the Group provided EUR 47,136 in support to 17 charitable projects

“Help2Help” is a cooperative programme through which the BNP Paribas Group in Luxembourg supports active and retired employees who volunteer their time to public interest projects. For its 12th edition, the Group provided EUR 47,136 in support to 17 charitable projects. The local and international initiatives provide assistance in a range of areas, such as education, healthcare, the environment and humanitarian aid.

This year, a EUR 2,500 prize (the “Prix Coup de Cœur”) was awarded to the Onco Gest association, which has developed an innovative, ecological and socially-minded concept by collecting and recycling products and accessories for use by cancer patients. The association is based in Lorraine and partners with a variety of associations in Luxembourg. It helps update play areas and waiting rooms in hospitals with recycled products and materials, and offers patients hair prostheses without advance payment.

Today, the Help2Help initiative provides support in around 30 countries where the BNP Paribas Group operates, and every year close to EUR 1 million is allocated to charitable projects around the world.

Béatrice Belorgey, Chair of the BGL BNP Paribas Executive Committee and Head of the BNP Paribas Group in Luxembourg, made the following comments: “Social inclusion and solidarity are core values at our bank and at the Group. It’s very encouraging to see that employee engagement hasn’t wavered – it’s actually increased – despite the challenging circumstances brought about by the health crisis in recent months.”

For more info visit: https://www.bgl.lu/en/help2help

In the first half of 2021, the bank continued to support its clients and to bolster the Luxembourg economy. Strong commercial momentum continued across all client segments.

In Retail and Corporate Banking, average loan outstandings were up 5% on the first half of 2020, boosted in particular by an increase in mortgages. Average deposit volumes grew by 9%[1], sustained primarily by inflows from corporate clients as well as by a rise in deposits from Retail Banking clients. In Wealth Management, thanks to dynamic growth, assets under management rose by 11% and average loan outstandings increased by 2%.

The bank continued to invest in improving the client experience to promote remote interactions especially and further pursued process industrialisation to enhance operational efficiency.

Since May, video identification has been offered by BGL BNP Paribas for online onboarding, which means that accounts can be opened remotely in less than 24 hours with no need for clients to attend branches in person for identification. 40% of digital onboarding is currently carried out via video identification. The bank has launched instant payments. As such, 85% of credit transfers between BGL BNP Paribas accounts and 10% of incoming external credit transfers are now credited instantly. Instant transfers will be rolled out to outgoing payments by the end of the year. The bank is also gradually setting up secure electronic signatures, in partnership with LuxTrust, to enable its clients to submit their applications remotely, quickly and easily.

To facilitate communication between clients and the bank, regardless of their chosen channel, BGL BNP Paribas continues to expand the range of features it offers them. For example, bank cards can now be activated via the Web Banking app, and card thresholds can be increased and online payments activated/deactivated. For Visa Debit cards, which clients can order themselves directly on their smartphone or through Web Banking, the percentage of digital sales stood at 36% at end-July 2021.

The bank also signed a partnership agreement with the Luxembourg branch of Wüstenrot Bausparkasse AG, a home-savings specialist authorised in Luxembourg. This new partnership expands BGL BNP Paribas’s mortgage range in order to meet clients’ needs.

In early 2021, BGL BNP Paribas launched, with BGL BNP Paribas Development, a new activity to help Luxembourg businesses by acquiring minority interests. Through direct investment in unlisted commercial, industrial or technological companies based in Luxembourg with turnover exceeding EUR 10 million, a profitable business and promising growth prospects, the bank intends to play a role in their organic and external growth plans, and to support them in business transfers.

At the 2021 Euromoney Awards for Excellence in July, Euromoney magazine named BGL BNP Paribas Best Bank in Luxembourg for the sixth year in a row. At the beginning of the year, during the Euromoney Private Banking Awards 2021, the bank won first place in the Best Private Banking Services Overall category, and ranked top in the ESG / Impact Investing category.

***

Béatrice Belorgey, Chair of the Executive Committee of BGL BNP Paribas and Head of the BNP Paribas Group in Luxembourg said: “Our aim is to continue to be there for our clients as they carry out their projects and to support the Luxembourg economy. BGL BNP Paribas continues to mobilise resources to invest in digitising its processes and improving the client experience. In this context, we have achieved strong commercial momentum. I would like to thank our staff for their commitment, flexibility and capacity for change in this constantly evolving environment, and would also like to thank our clients for their trust. We remain firmly committed to supporting the Luxembourg economy and contributing to a sustainable recovery.”

[1] at constant scope

BGL BNP Paribas recently signed a partnership agreement with the Luxembourg branch of Wüstenrot Bausparkasse AG, a home-savings specialist authorised in Luxembourg.

Aimed at better meeting clients’ needs, this new partnership expands BGL BNP Paribas’ mortgage range. By signing up to a home-savings scheme, clients enjoy preferential terms for financing their future home or renovating their current dwelling.

Under certain conditions, the premiums and instalments paid in to a home-savings scheme are tax deductible: up to EUR 1,344 if the holder is aged 18 to 40 at the start of the year, and EUR 672 if the holder is over 40. These amounts may be increased according to the number of people in the household.

  • Assets under management of EUR 28.0 billion at end-2020 (+0.4%)
  • Revenue of EUR 1.8 billion in 2020 (-18%)
  • Net income of EUR 39.1 million (+2.6%)

In conditions dominated by the health crisis, Cardif Lux Vie demonstrated the resilience of its business model, collecting EUR 1.8 billion in premiums (-18% vs. 2019). The company generated net income[1] of EUR 39.1 million (+2.6% vs. 2019). Assets under management were stable at EUR 28.0 billion (+0.4%).

Cardif Lux Vie worked hard throughout the year to support its clients and partners. A responsive, agile structure and widespread homeworking ensured business continuity.

Diversification of the business model in terms of regions, solutions and distribution channels allowed the company to sustain its momentum in 2020.

As an environmentally and socially aware insurer, the company also announced plans to accelerate the development of its responsible policy by investing an additional EUR 400 million in activities having a positive impact by the end of 2025.

 

Wealth Management

Cardif Lux Vie’s Wealth Management business posted revenue of nearly EUR 1.7 billion, 62% of which is in units of account (UC). The consequences of lockdowns and market volatility were visible early in the year, but the company performed well in the last quarter when it was able to take firm, bold steps to improve its offering (policies, investment vehicles, CSR approach) and customer service, both of which form the basis for strong development over the coming years.

Local market

With EUR 80.9 million in inflows on the local market despite a dip in the Investment Savings business (-44% vs. 2019) due to the difficulties arising from the health situation, Cardif Lux Vie recorded higher figures in Instalment Savings (+7%) and Retirement Savings (+3%) thanks to the resilience of the BNP Paribas Group’s bancassurance model, the alliance with the BGL BNP Paribas network and the development of Brokerage activities.

“In testing times, Cardif Lux Vie achieved respectable results in 2020 while constantly looking to protect its staff and maintain the level of service expected by its clients and partners. We went into 2021 and the next stage of our development with peace of mind, and the goal of being even more client-centric; of being a modern, innovative, responsible and committed company making insurance more accessible on all of the markets on which we operate,” comments Christian Gibot, CEO of Cardif Lux Vie.

Key figures at 31/12/2020
Number of employees 324
Revenue EUR 1.8 billion
Assets under management EUR 28 billion
Net income1 EUR 39.1 million

 

About Cardif Lux Vie

Cardif Lux Vie is a Luxembourg life insurance company positioned among the major players in the segment. Committed to its clients, partners and employees, the company provides high-quality solutions and services that contribute to sustainable and responsible growth.

In Luxembourg and the Greater Luxembourg Region, Cardif Lux Vie provides bancassurance and brokerage networks with high-value-added life insurance savings, retirement and protection insurance solutions for private individuals and professionals.

For high net worth clients active internationally, the company develops bespoke and sustainable open-architecture offers through an extensive network of first-class partners. Harnessing a comprehensive range of wealth engineering tools, Cardif Lux Vie’s planning solutions support clients and partners over the long term.

[1] Net income after tax according to Luxembourg accounting standards, equivalent to pre-tax income of EUR 57.4 million under Group IFRS.

A year marked by the health crisis, support for the Luxembourg economy,
measures to help clients and highly resilient activity

The key event in 2020 was the unprecedented global health emergency. From the moment the crisis took hold, the bank took measures to protect its staff and clients, while ensuring business continuity and the proper functioning of the bank. The measures were continuously reviewed as the health crisis unfolded and the bank encouraged clients to use remote banking services for their day-to-day operations. Thanks to its omni-channel model, the bank was able to ensure service continuity for its clients during lockdown periods when branch access was limited, thus providing alternative channels for interactions with the bank, such as Web Banking, the mobile app and telephone banking. Client Service was expanded to meet clients’ increased demand for support through this channel. The teams pulled out all the stops to make sure they could be there for their clients and support them through this period of change.

Throughout the year, the bank stood alongside its clients and worked with them to offer responsiveness and pragmatism when assessing issues and finding appropriate solutions. Advisors showed great dedication to supporting clients, providing explanations and telling them about the various types of assistance available. BGL BNP Paribas thus actively played a part, alongside the Luxembourg government, in establishing moratoria and government-backed loans. At 31 December 2020, the bank had granted a total of 5,322 moratoria for operations in Luxembourg in order to help its clients with looming cashflow issues. It had also granted around one hundred government-backed loans.

From the outbreak of the health crisis, the bank introduced a number of community support initiatives. It provided 5,000 FFP2 masks and 30,000 surgical masks to the Ministry of Health and offered support to its neighbours, the Hôpitaux Robert Schuman, through a variety of means. As part of the BNP Paribas Group’s emergency support plan rolled out to the 30-plus countries in which it is located, a total donation of EUR 100,000 was made to the Hôpitaux Robert Schuman Foundation, Caritas Luxembourg and Stëmm vun der Strooss to support hospital staff and vulnerable communities. The bank also matched every employee donation to healthcare charities and organisations assisting vulnerable people and contributing to medical research in the Greater Region; EUR 45,000 was thus donated to a range of organisations. In the summer of 2020, it led the Solidarité Coronavirus initiative: every time a payment was made using a BGL BNP Paribas credit card, the bank contributed 10 cents to a fund. The funds raised meant a EUR 30,000 donation could be made to Caritas Luxembourg for its Corona-Helpline and to contribute towards the housing costs of around 100 clients facing financial difficulties as a result of the health crisis. More recently, following a joint initiative between BNP Paribas Asset Management and BGL BNP Paribas, a cheque for EUR 8,000 was awarded to Stëmm vun der Strooss to help finance a social and professional reintegration programme.

Heavily integrated in the real economy, with BGL BNP Paribas Development, BGL BNP Paribas is launching a new activity that will allow it to help Luxembourg businesses by acquiring minority interests. Through direct investment in unlisted commercial, industrial or technological companies based in Luxembourg with turnover exceeding EUR 10 million, a profitable business and promising growth prospects, the bank intends to play a role in their organic and external growth plans, and to support them in business transfers.

In November 2020, BGL BNP Paribas became a strategic partner of i-Hub. The bank’s partnership with i-Hub will enable it to offer its clients an innovative digital management and storage system for the data and ID documents they are required to provide in the context of their relationships with players in the finance sector. The proposed solution will ultimately provide every client with free access to a Centralised KYC Repository.

Financial statements at 31 December 2020

On 1 April 2021, the Ordinary General Meeting of Shareholders, chaired by Etienne Reuter, approved the consolidated financial statements of BGL BNP Paribas under IFRS at 31 December 2020.

At EUR 1,595.5 million, net banking income increased 5% on 2019 (EUR 1,515.1 million). This increase is due in particular to a sustained dynamic commercial environment in the various business areas, the great efforts of the bank’s client service teams in the face of the health emergency and lockdown, and a capital gain related to the sale of investment property. Excluding this capital gain from the property sale, net banking income was up 2.6%.

Retail and Corporate Banking recorded 8% growth in average loan outstandings, boosted by an increase in mortgages and capital investment loans. Average deposit volumes grew by 2%, with deposits from Retail Banking clients increasing in particular.

Wealth Management AUM rose by 2% because of excellent net inflows. Wealth Management’s average loan outstandings grew by 12%.

Leasing International’s business operations, for which new production took a sharp hit in the first half-year, benefited from a sharp upturn from June onwards, thus containing the drop in average loan outstandings to 3%. Leasing International continued to develop new types of services to support clients during this time.

Operating costs were well under control. They amounted to EUR 784.2 million, down 1% on 2019 (EUR 792.4 million).

Gross operating income, at EUR 811.3 million, was up 12% on 2019 (EUR 722.7 million).

Cost of risk amounted to EUR 129.7 million versus EUR 101.3 million in 2019. The collective provisions include an estimation of the expected losses on not impaired loans, assessed in light of the potential impact of the health crisis.

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 11.9 million, compared with EUR 14.4 million in 2019.

Group consolidated net profit thus came to EUR 398.3 million, up 15% compared with 2019 (EUR 345.0 million). Excluding capital gains from property sales, net profit rose by 7%.

The balance sheet total was EUR 56.5 billion at 31 December 2020. It was stable relative to 31 December 2019 (EUR 56.6 billion). 

High solvency maintained

The solvency ratio was 23.5% (under Basel III rules), which was well above the regulatory minimum. With the Group’s share of regulatory capital amounting to EUR 6.3 billion, BGL BNP Paribas is well placed to back its clients’ projects and investments.

***

Béatrice Belorgey, Chair of the Executive Committee of BGL BNP Paribas and Country Head of the BNP Paribas Group in Luxembourg, said: “2020 was a challenging and difficult year in many respects. Our staff and clients have all done an outstanding job of adjusting to this new normal, and the bank’s results attest to the resilience of our operations. We are doing everything in our power to continue to help our clients through appropriate solutions, to support the Luxembourg economy and to contribute to a sustainable recovery.” 

BGL BNP Paribas’ annual report for the year to 31 December 2020 is available in French at www.bgl.lu

  • 1,381,555 leased vehicles, +6.4%* growth, making Arval the european leader in full service leasing**
  • Arval outperforms the market despite the pandemic
  • a pivotal year with the launch of a new, ambitious strategic plan: Arval Beyond
  • important partnerships concluded with Sixt, Caixabank, Unicredit Bank Austria, the acquisition of Unicredit Leasing Fuhrparkmanagement GmbH and the opening of a new subsidiary in Colombia
  • acceleration of Arval’s corporate social responsibility (CSR) commitment, rewarded with the platinum Ecovadis rating, ranking Arval in the top 1% of its industry
  • + 18% fleet growth for Arval Luxembourg

Arval specialises in full service vehicle leasing and new sustainable mobility solutions. Thanks to the quality of its services, its ability to react quickly and seize new opportunities, the resilience of its business and the solidity of the BNP Paribas Group, Arval outdid the rest of the market in 2020.

In 2020, Arval’s leased fleet grew by 6.4%* compared to 2019, reaching 1,381,555 vehicles. The Corporate financed fleet reached one million vehicles in 2020. The Retail segment grew by 15.7%, including 100,000 vehicles on private lease. The Mid-term Rental segment grew by 6%. Arval’s 7,200 employees serve 300,000 customers in 30 countries.

2020, a strong year despite the pandemic

During the health crisis, Arval’s teams were mobilised across the world to make sure the services it offers to customers continue in a secure manner. Thanks to its robust IT infrastructure, more than 99% of Arval employees were able to work from home safely from March 2020. The company also provided nearly 350 vehicles free of charge to healthcare workers in twelve countries. In this context, Arval has actively supported its customers throughout the crisis, offering flexibility in contractual terms and contract extensions. Arval has accelerated its remarketing strategy throughout the Covid19 crisis, complementing its B2B sales activities with a Retail offer supported by a fully digital customer journey. In response to new post-lockdown mobility trends, in May 2020 the company launched “The Journey Goes On”, a pioneering service designed to help and support Arval’s customers restart their business with safe, sustainable, and cost-effective mobility solutions.

2020 highlights 

After its 30th anniversary in 2019, Arval took an important step by presenting its new strategic plan, Arval Beyond, in October 2020, preparing the company to grow steadily in a new world, based on its main strengths while rethinking its business model to respond to customer needs.

Arval Beyond translates into four different offers: mobility in addition to cars with, for instance, the recent launch of bike leasing in eight countries (360° Mobility), technology for the benefit of Arval’s customers (Connected & Flexible), strong partnerships (Arval Inside) and sustainability at the core of everything (Good for you, Good for all).

Driven by a sense of responsibility towards society and its customers, in 2020 Arval developed a strong CSR strategy to respond to environmental issues, setting up unparalleled goals for 2025: half a million electrified vehicles leased and an average reduction of 30% in CO2 emissions for its entire fleet. In 2020, Arval assumed its role as an advocate for electric mobility and grew at twice the pace of the market in terms of Battery Electric Vehicle orders, taking into account the global market per country. Arval is also actively addressing diversity issues. With the “Arval Women in Action” Career Programme, for example, Arval is convinced that the women of today will pave the way for the women of tomorrow.

Fully in line with the new offer, Arval Inside, 2020 saw the renewal or launch of partnerships forged with major partners around the globe, including SIXT (beginning with Germany, France, the Netherlands, UK and Belgium) and CaixaBank Payments & Consumer group in Spain and Portugal. A new cooperation agreement was also signed with Unicredit Bank Austria, strengthening Arval’s position in the country with the acquisition of UniCredit Leasing Fuhrparkmanagement GmbH. All of these partnerships are based on a strong focus to provide a digital customer experience and expand the range of products and services with shared, connected and electrified mobility solutions.

Arval’s growth in 2020 not only came through strong partnerships, but also through geographical expansion. The company reinforced its presence in Latin America, opening a new subsidiary in Colombia in partnership with Relsa. This confirms Arval’s growth alongside its partners in the Latin American region.

Expanding horizons in 2021 with the first year of Arval Beyond 

In 2021, Arval will continue to deploy its strategy through concrete objectives. Amongst this year’s projects are:

  • New services to better care for corporate needs: Mobility Hub, Mobility App, Mobility Consulting, as part of the Arval Beyond’s 360° Mobility offer.
  • A renewed ambition to double the Battery Electric Vehicles orders market, backed by a transformational CSR project to be launched in June 2021
  • An ambitious partnerships programme to reach new populations and frontiers.

“The crisis in 2020 confirmed the priorities we defined for Arval Beyond as something our customers needed. Arval is even stronger today and is leading the market in terms of performance, pioneering spirit and its CSR commitments. I am very confident about the year ahead; we have numerous projects and initiatives planned. The investments we make today will strengthen our vision through 2021 and the years to come, and we expect to exceed 2020’s performance in terms of fleet growth this year”, says Alain van Groenendael, Arval Chairman and CEO. 

*Growth rate for the end of the period 2019-2020 on a comparable basis.

**multibrand full service leasing

ARVAL LUXEMBOURG: ROBUST GROWTH OF 18% IN THE LEASED FLEET IN 2020

In 2020, Arval strengthened its position as a major player on Luxembourg’s operational lease market for company vehicles and transport solutions. Its fleet grew by an impressive 18% during the year, taking the number of leased vehicles to over 10,000. This growth, which outpaced that of the wider Luxembourg operational lease market, constitutes a continuation of a trend in place for several years and a fitting tribute to the continuity of service quality offered by Arval Luxembourg throughout the health crisis.

Arval Luxembourg was again awarded the “Best Workplace Luxembourg 2020” label by the Great Place to Work institute, in recognition of the high-quality working conditions available to members of staff. This accolade, which underscores the well-being of Arval employees, is testament to the constructive dialogue engaged in by the management team and the wider workforce.

In November 2020, Arval Luxembourg strengthened its commitment to Corporate Social Responsibility (CSR) by deciding to support Reforest’Action, a social enterprise whose primary mission is to raise awareness and protect forests.

As part of this commitment, Arval Luxembourg is pledging to plant 10,000 trees in Luxembourg over the 2020-2021 planting season.

Overview of Arval Luxembourg’s solutions in 2020:

  • The Arval Mid Term Rental (1 to 24-month lease) continued to prove successful on the Luxembourg market, with the number of leases signed rising by almost 25% in 2020. This solution meets Luxembourg companies’ need for flexibility as a result of spikes in activity, seasonal spikes, the various phases of the recruitment process (trial periods, fixed-term contracts, etc.) and even requirements relating to the current health crisis.
  • Arval Luxembourg continued to draw upon its partnership with BGL BNP Paribas to promote its Private Lease via the latter’s branch network. The Private Lease is a long-term vehicle lease solution aimed at private individuals living in Luxembourg. A number of new solutions were brought to market over the course of the year to meet the varying needs of these target private clients. Particular emphasis was placed on promoting new electric and hybrid vehicles.
  • As part of its ongoing commitment to drive innovation on the Luxembourg market, Arval Luxembourg launched a new green transport solution designed to make it simpler for companies, municipalities and individuals to access electric and hybrid vehicles.

For the price of a monthly lease payment, this solution includes:

  • operational lease of electric/hybrid vehicles offering technological innovations that provide drivers with ever-greater autonomy,
  • as well as easier access to electric charging infrastructure through the installation of charging points located on company premises or at drivers’ homes.

For further evidence of Arval Luxembourg’s determination to offer a comprehensive range of solutions, we need only consider the Arval Easy Travel solution, launched in the second half of 2020, which enables drivers to occasionally swap their main electric vehicle for a vehicle with an internal combustion engine when they need to. This could include a vehicle better suited to holiday travel or any other vehicle that meets drivers’ ad-hoc needs.

Véronique Bourgois, Managing Director of Arval Luxembourg, comments: “The results achieved in 2020 amid one of the most challenging health crises ever seen vindicates the strategic direction we adopted several years ago: our teams’ unfailing support for clients and the flexibility of our services proved particularly beneficial in terms of client satisfaction. Guided by the Arval Beyond strategy, we will rely on the high-quality service offered by our Luxembourg-based team and our expertise in green transport solutions in 2021.”

As part of a joint initiative set up by BNP Paribas Asset Management and BGL BNP Paribas to support those hardest hit by the COVID-19 pandemic, a cheque made out to the non-profit organisation Stëmm vun der Strooss was presented on 13 January 2021 at the bank’s head office. In the presence of Béatrice Belorgey, Chair of the Executive Committee of BGL BNP Paribas and Country Head of the BNP Paribas Group in Luxembourg, Stéphane Brunet, CEO of BNP Paribas Asset Management Luxembourg, and Nathalie Blanchet, Head of Sales at BNP Paribas Asset Management Luxembourg, a cheque for EUR 8,000 was presented to Alexandra Oxacelay, Director of Stëmm vun der Strooss, and Dominique Godin, a volunteer at the association.

The non-profit organisation Stëmm vun der Strooss aims to carry out and promote all activities relating to informing, representing and defending the interests of excluded and at-risk social groups. The service is aimed at adults facing psycho-social and medical challenges. They mostly include long-term unemployed people, people with alcohol or drug addictions, vulnerable young people, ex-prisoners, asylum seekers, undocumented migrants, homeless people and people with mental health issues.

BNP Paribas Asset Management and BGL BNP Paribas made a commitment to donate EUR 0.50 to Stëmm vun der Strooss per tranche of EUR 1,000 invested in the BNP Paribas Healthcare Innovators, BNP Paribas Disruptive Technology and Generalpart 1 World Sustainable funds. This grant will help fund a new social and professional reintegration programme in Sanem, including two therapy workshops, employing 90 people, up from 50 previously. The project also aims to combat food waste by recovering 500 tonnes of food still good for consumption, in order to prepare meals for those most in need.

Alexandra Oxacelay, Director of Stëmm vun der Strooss, stated: “I would like to thank you wholeheartedly on behalf of Stëmm vun der Strooss, as your contribution helps make our fight for the social and professional reintegration of the most vulnerable people a more achievable goal.”

Stéphane Brunet, CEO of BNP Paribas Asset Management Luxembourg, explained: “All of us here at BNP Paribas Asset Management Luxembourg are delighted by the success of this campaign, which has enabled us to not only offer effective management solutions, suited to the current context and our clients’ needs, but also to take part in a Stëmm vun der Strooss reintegration programme, in keeping with BNP Paribas Asset Management’s CSR commitments.”

Béatrice Belorgey, Chair of the Executive Committee of BGL BNP Paribas and Country Head of the BNP Paribas Group in Luxembourg, highlighted: “The social and solidarity economy plays an increasingly vital role in Luxembourg. However, its continued momentum depends on the commitment of every individual. By supporting this project, we’re reaffirming our commitment to the social and solidarity economy and the fight against food waste, which has, among other things, a significant environmental impact.”

Being the bank for a changing world means helping build a more sustainable future and supporting all those involved.

BGL BNP Paribas is pleased to announce its support for the COSL for 2021, the year of the Olympic Games in Tokyo.

The agreement was signed on Wednesday, 13 January by Béatrice Belorgey, Chair of the BGL BNP Paribas Executive Committee and Country Head of the Group in Luxembourg, Thierry Schuman, member of the BGL BNP Paribas Executive Committee, André Hoffmann, President of the COSL and Daniel Dax, Secretary General of the COSL.

Upon signing the agreement, Béatrice Belorgey welcomed the partnership, which reflects BGL BNP Paribas’ determination to play an active role in the social and sporting fabric of the country.

André Hoffmann emphasised how crucially important having a partner such as BGL BNP Paribas is for the COSL in order to continue to develop and promote sport and sportsmen and women in Luxembourg and abroad, thus securing exemplary performance and results.

2021 will be a significant year for all sports fans, as the 2020 Olympics will take place from
23 July to 8 August in Tokyo.