| BIL and Office du Ducroire sign the first framework agreement to finance companies’ international growth | https://www.bil.com/en/bil-group/pressroom/news/Pages/BIL-Office-du-Ducroire-sign-first-framework-agreement-finance-companies-international-growth.aspx | BIL and Office du Ducroire sign the first framework agreement to finance companies’ international growth | | <p>International growth is a real challenge for any company, but especially small and medium-sized enterprises. Researching new clients, setting up and even adapting products to the local market require big investment. Moreover, the import-export business is cash-hungry: a foreign client may ask for an extended payment deadline, and in the case of a foreign supplier, a large down payment may be required. The company’s ability to mobilise substantial financial resources is key.</p>
<p>The agreement signed between BIL and ODL answers this challenge. It facilitates companies’ access to funding for import-export projects through a bank loan insurance policy that partially covers the borrower default risk.</p>
<p>“<i>Through this deal with ODL, we will be able to strengthen our support for the Luxembourg economy by helping companies with their international development plans. This insurance has been eagerly awaited by businesses in the country, and we are happy to be the first bank to offer it</i>”, said Marcel Leyers, Chairman of the Executive Committee of Banque Internationale à Luxembourg.</p>
<p>“<i>The fact that exporters often have trouble accessing the funds needed for their international development led us to launch this new product, which is supposed to provide leverage by protecting banks partially against the risk of non-reimbursement of the loans. This cover will allow banks to open higher credit facilities for Luxembourg companies’ international operations, while keeping their risk at an acceptable level,</i>” explained Arsène Jacoby, Chairman of ODL.</p>
<p>ODL’s bank loan insurance supplements BIL’s range of business services. From a company’s foundation to takeover, to the financing of investments and innovative or international projects, the bank accompanies small and large firms through each stage of their development.</p>
<p>To find out more about this bank loan insurance available from BIL and ODL, visit <a href="https://www.bil.com/trade-finance">www.bil.com/trade-finance</a></p> | 5/13/2019 11:00:00 AM | | |
| BIL’s 2018 financial results: a good business performance in a challenging environment | https://www.bil.com/en/bil-group/pressroom/news/Pages/BIL-2018-financial-results-a-good-business-performance-in-a-challenging-environment.aspx | BIL’s 2018 financial results: a good business performance in a challenging environment | | <ul class="list-check">
<li>Net income after tax: EUR 131 million, +5% (EUR 124 million in 2017 after restatement <sup>1</sup>)</li>
<li>Assets under Management: EUR 39.5 billion, +0.2% (EUR 39.4 billion in 2017)</li>
<li>Customer deposits: EUR 17.3 billion, +5.8% (EUR 16.3 billion in 2017)</li>
<li>Customer loans: EUR 13.4 billion, with a +5.2% increase in commercial loans</li>
<li>Common Equity Tier 1 Capital Ratio: 12.04%</li>
<li>Capital Adequacy Ratio: 15.62%</li>
</ul>
<p>BIL reported a solid net income after tax of EUR 131 million in 2018, compared with EUR 124 million in 2017 after restatement (+5%). The positive evolution in 2018 mainly results from:</p>
<ul class="list-check">
<li>a stability of the core operating income from the commercial business lines of EUR 500 million despite a challenging macroeconomic environment with low interest rates and regulatory changes such as the introduction of MiFID II,</li>
<li>the revaluation of investment properties resulting from an alignment of BIL’s accounting policies with those of its majority shareholder Legend Holdings generated a positive impact of EUR 35 million on BIL’s accounts, compared with EUR 10 million in 2017.</li>
</ul>
<p>All business areas (Retail & Digital Banking, Corporate & Institutional Banking, and Wealth & Investment Management) delivered a good performance in 2018, although the assets under management were impacted by negative market conditions:</p>
<ul class="list-check">
<li>Assets under Management (AuM) increased by 0.2%, reaching EUR 39.5 billion compared with EUR 39.4 billion in 2017. This increase resulted from new net inflows of EUR 0.95 billion. However, this growth was dented by a negative market effect of EUR 0.87 billion due to corrections in equity markets in the last quarter of 2018,</li>
<li>Customer deposits increased by 5.8%, reaching EUR 17.3 billion compared with EUR 16.3 billion at year-end 2017,</li>
<li>Commercial activities’ loans increased by EUR 0.68 bn (+5.2% compared with year-end 2017), once again demonstrating BIL’s support for the Luxembourgish economy. This was offset by a decrease of maturing institutional clients’ loans from Treasury and Financial Markets which positioned the annual growth at 0.3% to EUR 13.4 billion.</li>
</ul>
<p>“<i>We again delivered good results in 2018 despite challenging market conditions. Looking back at my time as CEO of BIL, I must say that I am very proud of what we have achieved as a team at the Bank over the last five years. I would like to thank the shareholders and the BIL employees for their support and commitment</i>” commented Hugues Delcourt, outgoing CEO.</p>
<p>Marcel Leyers, incoming CEO of BIL, commented: “<i>Going forward, even though global growth is currently slowing, market fundamentals remain strong and we generally retain a positive outlook on the macroeconomic environment. We will continue to invest in strategic areas and to foster innovation and we are confident that our performance will remain robust in the coming years.</i>”</p>
<p>Luc Frieden, Chairman of the Board of Directors of BIL Group, added: “<i>2018 was marked by the completion of the acquisition of Precision Capital’s majority stake in BIL by Legend Holdings. The combination of the two shareholders, the State of Luxembourg and Legend Holdings, is excellent for BIL and its clients, as it combines a strong and a stable anchoring in Luxembourg and Europe with the technological and international know how of Legend Holdings.</i>”</p>
<h4 class="title-2">2018 HIGHLIGHTS</h4>
<p>Against the background of a shareholder change and new regulatory requirements, BIL continued to implement its BIL2020 strategy in 2018 with a particular focus on the constant improvement of its client experience, including its digital offering and onboarding as well as the launch of new in-house investment funds. These efforts were recognised externally by the “Best Bank in Luxembourg” award by Global Finance for the third time in a row.</p>
<h4 class="title-2">NEW INVESTMENT PRODUCTS </h4>
<p>Regulatory change continued to be a major topic in 2018. MiFID II and PRIIPs entered into force on January 2018 bringing profound changes to the way in which BIL interacts with clients. As a result, clients have been able to benefit from a new, simplified suite of investment products with a new accompanying pricing grid since the beginning of 2018.</p>
<p>As part of its new investment offering, BIL launched 12 new in-house BIL INVEST investment funds in March for use in mandated products and for distribution through execution-only and advisory services. The funds match BIL's asset allocation model and are open for subscription to all clients in Luxembourg, Belgium, France and Germany. These funds will help BIL achieve its BIL 2020 strategy objective of becoming a well-known investment fund brand also available through digital channels in all core markets.</p>
<p>Thanks to the new shareholder Legend Holdings, BIL now has Legend Capital, an outstanding Venture Capital fund manager as a sister company. In order to give its clients the opportunity to benefit from Legend Capital's proven track record, extensive network and unique experience in the Chinese private equity market the bank launched BIL PE I fund of funds that was incorporated in the form of a Reserved Alternative Investment Fund (RAIF) in September 2018. The aim is to offer clients long-term capital appreciation by capturing all Legend Capital's private equity know-how within one single diversified fund.</p>
<h4 class="title-2">FURTHER STRENGTHENING OF THE DIGITAL OFFER</h4>
<p>Digitalisation is a key focus of the BIL2020 strategy as it enables the Bank to tailor services to the clients’ needs and to increase efficiency. Over 70% of our clients use our BILnet online banking platform and over half of them do so using our app on their mobile devices.</p>
<p>A key digitalisation milestone was met in April 2018 when BIL launched a more innovative, simple and secure version of its BILnet app. Clients can now carry out simple banking transactions via biometric fingerprint or PIN. BIL was also the first Luxembourgish bank to offer online account opening entirely from a smartphone or tablet in a matter of minutes via the new app. By answering a few questions, prospects can be identified during a webcam session, and the process ends with the electronic signature of the banking contract and the issuance of an International Bank Account Number (IBAN).</p>
<h4 class="title-2">SUPPORTING INNOVATIVE COMPANIES IN LUXEMBOURG</h4>
<p>In addition to the Bank’s ongoing efforts to provide clients with innovative services, BIL encourages entrepreneurship in Luxembourg. For example, BIL launched a dedicated innovation website (www.bil.com/innovation) in April which lists services, subsidy schemes and partnerships for innovative companies seeking a sponsor. </p>
<p>BIL is also a key sponsor of local start-up contests such as the regional semi-final of the Startup World Cup 2018 that took place in March and the 4th annual Pitch Your Start-Up competition in May. Of course BIL also continued to support its more traditional client base of established companies. For example, BIL structured and distributed a EUR 180 million syndicated loan in January 2018 by acting as the sole arranger, agent and security agent. This transaction was notable as it was the first time BIL combined equity bridge financing with a loan syndication process. BIL has the only dedicated syndication team in Luxembourg and specialises in syndicated lending under 200 million Euros.</p>
<p><small><sup>1</sup>In the financial statements as at December 31, 2018, BIL changed the measurement of property held for investment and amended the calculation of provisions for pensions . The impacts of these changes have been applied retrospectively to the 2017 published results.</p></small> | 4/26/2019 10:00:00 AM | | |
| Investment Plan for Europe: EUR 20 million for innovative SMEs in Luxembourg through EIF and BIL | https://www.bil.com/en/bil-group/pressroom/news/Pages/PME-FEI-BIL.aspx | Investment Plan for Europe: EUR 20 million for innovative SMEs in Luxembourg through EIF and BIL | | <p>An extension of an existing InnovFin agreement between the EIF and BIL will see an increase in access to finance for innovative Luxembourgish small and medium-sized businesses and small mid-caps. The operation is backed by the European Fund for Strategic Investments (EFSI), the heart of the <a href="https://ec.europa.eu/commission/priorities/jobs-growth-and-investment/investment-plan_en" target="_blank">Investment Plan for Europe</a>.</p>
<p>The original guarantee agreement, first signed in 2015, was increased by EUR 10 million to allow BIL to expand its lending to the innovative business sector in Luxembourg by twice that amount. The increase means that the EIF’s guarantee will cover a portfolio of SME and small mid-cap lending by BIL of up to EUR 80 million in total, awarding loans to well over 100 businesses.</p>
<p>« <i>The extension of our agreement with the EIF demonstrates the relevance of the InnovFin initiative and our success in unearthing and supporting innovative companies in Luxembourg. From helping start-ups to take off, to financing innovative projects designed by mature SMEs, BIL has firmly established itself as a key supporter of Luxembourg’s thriving innovation ecosystem. We are proud to open a new chapter of this success story that will encourage the local economy to further innovate and grow</i> » said <b>Marcel Leyers</b>, Chief of Corporate and Institutional Banking of BIL and incumbent CEO of BIL as of 1 May this year.</p>
<p><b>Carlos Moedas</b>,European Commissioner for Research, Science and Innovation, said: «<i> This is very good news, and yet another example of the Juncker Plan at work. It means fresh financing for Luxembourgish small and medium businesses, and this is often exactly what they need to launch new products, integrate innovative processes, create new jobs and expand beyond their local market.</i> »</p>
<p>EIF Chief Executive, <b>Pier Luigi Gilibert</b>, added: «<i> Increasing access to finance remains a crucial topic throughout Europe, including in Luxembourg. With this increase, BIL will continue to offer more favourable financing to innovative SMEs and small mid-caps, something that I’m sure the market will appreciate. InnovFin and the Investment Plan for Europe continue to be instrumental in giving opportunities to smaller businesses.</i> » </p>
<p><b>Background information</b><br><br>
The <b>European Investment Fund</b> (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.</p>
<p>The <b>Banque Internationale à Luxembourg</b> (BIL) was founded in 1856 and is the oldest multi-business bank in the Grand Duchy. It has always played an active role in the main stages of development of the Luxembourg economy. It currently operates in retail, private and corporate banking, as well as on financial markets. Employing more than 2,000 people, BIL is present in the financial centres of Luxembourg, Switzerland (since 1984), Denmark (since 2000) and the Middle East (since 2005).</p>
<p>In July 2015, BIL entered into an InnovFin agreement with the EIF, for a total guarantee amount of EUR 30 million, covering a portfolio of EUR 60 million in loans to SMEs and small mid-caps. Based on market demand, this additional guarantee amount of EUR 10m under InnovFin will raise the total guarantee to EUR 40 million, allowing BIL to cover a portfolio of up to EUR 80 million in loans to Luxembourgish businesses. </p>
<p>The <a href="http://ec.europa.eu/priorities/jobs-growth-and-investment/investment-plan_en" target="_blank">Investment Plan for Europe</a>, known as the Juncker Plan, is one of the European Commission’s top priorities. It focuses on boosting investment to generate jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.</p>
<p>The European Fund for Strategic Investments (EFSI) is the main pillar of the Juncker Plan and provides first loss guarantees, enabling the EIB to invest in more projects that often come with greater risks. EFSI has already yielded tangible results. The <a href="http://ec.europa.eu/priorities/publications/investment-plan-results-so-far_en" target="_blank">projects and agreements</a> approved for financing under EFSI are expected to mobilise almost EUR 390 billion in investments and support 929,000 SMEs in the 28 Member States. More information on the results of the Investment Plan for Europe is available <a href="https://ec.europa.eu/commission/priorities/jobs-growth-and-investment/investment-plan-europe-juncker-plan/investment-plan-results_en" target="_blank">here</a>.</p>
<p>The <a href="http://www.eif.org/what_we_do/guarantees/single_eu_debt_instrument/innovfin-guarantee-facility/index.htm" target="_blank">InnovFin SME Guarantee Facility </a>is established under the "EU InnovFin Finance for Innovators" initiative developed under Horizon 2020, the EU Framework Programme for research and Innovation. It provides guarantees and counter-guarantees on debt financing of between EUR 25,000 and EUR 7.5 million in order to improve access to loan finance for innovative small and medium-sized enterprises and small mid-caps (up to 499 employees). The facility is managed by EIF and is rolled out through financial intermediaries – banks and other financial institutions – in EU Member States and Associated Countries. Under this facility, financial intermediaries are guaranteed by the EU and EIF against a proportion of their losses incurred on the debt financing covered under the facility.</p> | 4/10/2019 10:00:00 AM | | |
