Thanks to its 10% shareholding, the state will receive a dividend of €3.39m. Photo: Maison Moderne / Archives

Thanks to its 10% shareholding, the state will receive a dividend of €3.39m. Photo: Maison Moderne / Archives

It was a complicated financial year for the Banque Internationale à Luxembourg, which saw revenues fall by 6% and net profit by 16%. The bank spoke of a “solid performance,” reaffirmed its lasting commitment as a local universal bank and avoided any questions about its future despite rumours of a takeover.

A “solid” financial year 2024, in the bank’s words, but nevertheless less solid than the prior year. In 2023, Bil posted a net profit of €202m, compared with €170m in 2024. Revenues were also down, from €762m to €719m (-6%). Finally, net interest income fell to €476m from €538m a year earlier. These declines are attributable to “changes in the interest rate environment.” On a positive note, expenses were down slightly at €499m (-€6m).

The fall in profits will not prevent the payment of a dividend of €33,959,736. This corresponds to €16.27 per share for the 2,087,261 existing shares. Holding 10% of the capital, the state will thus receive €3.39m. The Chinese shareholder, Legend Holdings, will receive €30.5m.

Deposits stabilise and AUM rise

Indicators of customer confidence in the bank are improving. On the other hand, assets under management (AUM) rose from €43.8bn to €46.8bn over the year, “driven both by new asset inflows and by a positive market performance,” explains Bil. Customer deposits stabilised at €16.8bn, €100m more than in 2023, but still far from the 2022 record of €21bn. The total volume of loans fell slightly to €16.2bn compared with €16.4bn in 2023. “Customers have been more cautious, particularly when it comes to new investments and borrowing decisions,” the bank comments. The CET1 ratio increased after profit allocation to 14.25% and the liquidity coverage ratio rose to 200%, “well above the regulatory threshold.”

Focus on the local market and the greater region

As rumours grow that Legend Holdings, the main shareholder, will withdraw, Bil is refusing to comment. It prefers to focus on its 2025-2030 strategic plan.

This plan provides for a strengthening of traditional activities and a refocusing on the local market and the wider region. It also intends to expand the bank’s international wealth management activities in certain key markets, starting with the opening of a branch in France in 2025.

This article in French.

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