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Together for you

2013 in review

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Financial highlights 04

The Chairmen’s message 08

BIL delivers solid profits during its first full year of independence 09

The financial markets 2013 10

Exit of the recession 11

Luxembourg: some cylinders firing better than others 13

Growth of the Luxembourg financial centre 14

175 years of Luxembourgish independence 16

BIL presents itself 18

Company profile 20

Strategic vision 21

BIL’s national and international presence 22

Corporate governance 26

History of BIL 28

Business review 30

Customer satisfaction is at the very heart of our concerns and our actions 32

BIL, a major player on the financial markets 40

A bank with a human face 43

A committed and responsible bank 44

BIL raises its international profile 46

BIL conferences 47

Civic and social responsibility 49

Art and culture 50

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04 BIL | Annual Report 2013

BIL | Annual Report 2013 05


Staff BIL Luxembourg

1,939

Financial highlights

Staff BIL group

2,082

Development of the

Commercial franchise

* AuM recalculated for 2011 and 2012 following the withdrawal by an institutional customer at the start of 2013.

(in EUR billion) 2011 2012 2013 Change 2012 versus

2013

Change 2011 versus

2013

Assets under Management* 26.4 29.0 28.8 -0.7 % 9.2 %

Deposits 9.5 11.5 12.5 8.2 % 31.4 %

Loans 9.5 9.6 10.1 5.3 % 6.0 %

(in EUR million) 31/12/2012 31/12/2013 Changeversus

Core 2012Total Non-core Core

Revenues 360 (60) 420 504 20 %

Expenses (331) (6) (325) (341) 5 %

Gross operating income 29 (66) 95 163 72 %

Cost of risk and provisions for legal litigation (7) 9 (16) (24) 46 %

Net income before tax 22 (56) 78 139 78 %

Tax expense 8 29 (21) (26) 23 %

Net income 30 (27) 57 113 98 %


In 2013, net income before tax for the BIL group totalled 139 million, i.e. a highly significant growth of 61 million (+78 %) compared with December Core 2012 (78 million).

Tier 1 common equity Basel II

14.93 %

Ratings

A- outlook stable

Statement of income

Income before tax 139 m

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BIL delivers solid profits during its first full year of independence

An uncertain and uneven recovery during 2013 featured substantial regulatory and structural change aimed at dealing with the causes of the financial crisis in Europe that in some ways is ongoing, while the US government’s attempt to step back from direct economic support is having widespread side-effects.

The stock markets had a record-breaking year, with Japan’s Nikkei amazing analysts with its 57 % rise. US stock markets reached historic highs and several major European exchanges exceeded 20 %. With no major crisis on the macroeconomic level, the euro gained ground after the ECB’s intervention helped to stem the tide of panic over the euro zone.

The European Union made progress in preventing another crisis by taking steps towards a banking union and financial market supervision. Concerns about income tax evasion led to a break-through on automatic information exchange, with Luxembourg agreeing on April 10.

Luxembourg is one of only three countries in the euro zone and ten countries in the world to retain the Holy Grail of ratings, the AAA. The country’s economy grew 2 % during 2013, a slight improvement over 2012, but well short of average historic figures.

The financial centre has benefitted from a gradual return of confidence in the financial markets, but is still undergoing some turbulence. The Luxembourg fund industry’s assets under management reached a record high, up over 10 % during the year. The non-financial sector seems to be improving, as well, with manufacturing companies demonstrating a renewed optimism from the middle of 2013. However, unemployment exceeded 7 % in 2013, the highest in recent times, and is expected to continue growing.

Luxembourg’s newly-elected government laid out its plan to support the financial sector. This involves three axes of endeavour: consolidating and developing the pillars of the financial centre, reinforcing cooperation within the centre, and diversifying its financial activities and geographic markets.

The new government has declared that it shares the financial centre’s views on a range of issues such as wealth and inheritance taxes and the extension of automatic information exchange. It has also committed not to increase subscription taxes in a bid to attract alternative funds. In terms of geographic markets, the government plans to continue positioning Luxembourg as a point of entry into the European market, and is taking steps to attract banks and financial actors from China and the Gulf region.

In its first full year of renewed independence, BIL has confirmed a return to profitability, reporting at the end of 2013 a pre-tax net income of EUR 139 million, up 78 % over a comparable assessment of 2012. This result exceeded expectations, thanks to the dynamism of all of our business activities. Assets under management were stable at over 28 billion euros. BIL’s credit rating was affirmed at ‘A-‘ by the Fitch and Standard & Poor’s agencies.

The Bank continues to play a key role in supporting the Luxembourg economy, by providing financing to companies (including SMEs), with investment loans up 8 %, and to homeowners, with mortgages up 5.3 %. This systemic role for Luxembourg led BIL to be selected by the European Central Bank as one of the 128 financial institutions to be subjected to its Asset Quality Review and to undergo stress-testing. These procedures are part of the ECB’s preparations for supervising the European banking union in late 2014.

During 2013, BIL took further steps towards fulfilling its growth ambitions for 2015. For example, private banking expanded its international reach by establishing dedicated branches in Belgium and Denmark, and by starting work on another in Dubai, which will open in 2014. BIL also announced the creation of Belair House, a new Multi Family Office to better serve ultra-high net worth individuals.

Recent regulatory developments have also created opportunities for the Bank. BIL Manage Invest was set up to fulfil the requirements of the Alternative Investment Fund Managers Directive (AIFMD). Following the Luxembourg government’s announcements on the automatic exchange of financial information from 2015, BIL stands ready to offer solutions suited to customer needs.

Treasury and Financial Markets leveraged its 50 years of experience with bonds through its involvement in two major Luxembourg government bond issues last year. Retail banking upgraded several branches across the country to offer customers more security and comfort in more convivial environments.

Throughout the year, the Bank continued hiring in order to make all of its new projects possible.

In our capacities as chairmen of BIL’s board of directors and management board, we would like to express our gratitude to our customers for their loyalty and for the confidence they have placed in BIL. We would also like to thank our staff for their dedication in serving our customers.

Given the support from our shareholders – Precision Capital and the Grand Duchy of Luxembourg – and our staff’s expertise, we are certain that the Bank has significant growth opportunities, both locally and internationally.

Frank WAGENER François PAULYChairman of the Board of Directors Chief Executive Officer


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ECB takes different tack than Fed

The European Central Bank (ECB) has until recently taken a divergent position from that of the US Federal Reserve (Fed), taking the view that deflation was not a risk to the economy. The ECB had started to reduce excess liquidity in late 2012, despite ongoing economic weakness, after having injected EUR 1 trillion into directly supporting its banking system through the Long Term Refinancing Operation (LTRO) - unlike the Fed’s third Quantitative Easing, or ‘QE3’ programme, which bought a mixture of mortgage-backed securities and US Treasuries. This decision to reduce liquidity was taken even though ongoing credit shrinkage and unemployment hovering around 12 %. The positive development in liquidity from the LTRO was, however, successful at improving the situation of European banks. The banks were able to make payments on the three-year loans issued to them in December 2011 and February 2012 throughout the year, managing to reimburse around 400 billion of the LTRO funding by year’s end.

The then-incoming Fed chair, Janet Yellen, took a critical view of events in Europe late in the year: “The near-stagnation of the Eurozone economy underlines the fragility of the recovery and the growing dangers of a damaging bout of deflation in the region”, Yellen stated. “I consider it imperative that we do what we can to promote a very strong recovery.”

“Soft tapering” makes its debutThe end of the year saw the highly anticipated announcement of “soft tapering”, or the reduction of the 85 billion euro per month the Fed had been injected into the economy as part of QE3. As from January 2014, “only” 75 billion USD worth of bonds will be bought; 10 billion less per month. To soften the potential blow to the economy from more aggressive tapering, the Fed aims to keep the base rate low (currently at 0.25 %), as long as the unemployment remains above 6.5 % and the expected rate of inflation (at the end of December 1.5 % annually) fails to increase to its long-term target of 2 %.

In Europe, a tenuous move toward recovery in some sectors was observed, however only extremely sluggish economic growth of 0.1 % was recorded in the third quarter. The European rate of inflation compared to the previous year was 0.8 % and thus well below the ECB target rate of 2 % p.a. At 0.7 % p.a., inflation reached its lowest point in October. The ECB reacted by lowering the main refinancing operations rate twice to the current rate of 0.25 %. At the end of the year, the ECB mentioned stable or even lower base rates.

Good news from EuropeDespite an overall sense of malaise and the ongoing downturn, there was some positive news from Europe. In specific cases: Ireland managed to exit the Troika bailout programme in mid-December. That same month, Spain also managed to exit its European Stability Mechanism (ESM) programme which served to support its banking sector. In Italy and Portugal, an unstable government majority and a government crisis led to temporary uncertainty. However, state reform and a positive trend ultimately ensured lower interest rates on new debt for both countries. Slovenia’s surprisingly successful bank stress tests in mid-December must equally be noted as a positive. It is unlikely that it will become the sixth country to seek international aid. And perhaps most impressive of all, investors who purchased Greek 10-year government bonds at the beginning of 2013 enjoyed a total gain of almost 39 %.

Interest rates, which have a significant impact on bonds, were volatile, but on a consistently low level all year long. This was what had led analysts earlier in the year to have predicted the “great rotation” of investments from bonds to equities. For example, the “risk-free” component of interest rates experienced a significant increase over the year. The yield on a ten-year German government bond rose from its low point of 1.16 % at the beginning of May to exceed 2 % at the start of September.

Exit of the recession After five years of crisis, 2013 brought some brighter news, with a wide variety of economic areas turning in positive – in some cases dramatically positive – performances. The financial markets, which have managed to remain at least moderately successful throughout the depths of the crisis, last year featured jaw-dropping returns in some exchanges, with strong performances above 20 % the norm. Improvements also occurred throughout a range of areas including bank liquidity, capital market rates and corporate bonds. Even the hard-hit PIIGS European countries caught a break on interest charges on new debt. The two-year-old euro zone recession started to ease.


Equities benefit from high liquidity

While the equity markets failed to benefit as much as they might have from the predicted “great rotation”, they benefitted in any case from the fact that the still-high levels of liquidity meant that money was still cheap, which supported the positive development of the established worldwide stock markets in particular.

In addition, economic indicators had improved in the US; and Europe had largely overcome the sovereign debt crisis, which was driving the upturn in the stock markets. In one dramatic case, Japan’s government and central bank measures for economic stimulation have proved effective. Known as Abenomics, they are based on three pillars (monetary policy, fiscal policy and strategies for economic growth) and aim to solve Japan’s macro-economic problems.

Stock markets reach new highsThe American S&P 500 stock index gained 26.7 %, expressed as a total return EUR valuation, and thereby reached a new all-time high of 1,848 points based on the closing price on December 31, 2013. In Europe, the Stoxx Europe 600 index managed an improvement of 21.5 %, expressed in the same way as its US counterpart. The Japanese Nikkei 225 Index closed up 25 %, for EUR-based investors on a total return basis. Unlike as in previous years, the improvements in corporate profits were no longer able to keep up with the increases in share prices in 2013.

The forex market, too, was heavily impacted by where the tapering plans stood. The year saw a slight sideways trend in the EUR/USD exchange rate within a 10 cent range between 1.28 and 1.38. Nevertheless, the exchange rate fluctuated repeatedly. As in recent years, this was primarily due to the euro debt crisis, but also because of the Fed’s monetary policy.

Gold is side-swiped by persistent low-inflation

One of the key signs of the lack of economic dynamism around the world’s economies was ongoing low inflation. The ECB and the Fed each in their different ways made a priority of stimulating inflation.

Since gold is usually considered a hedge against inflation, the low levels of inflation finally resulted in one of the most significant economic news stories of the year: the 12-year love story with gold came to an abrupt end in 2013. The falling price of the commodity featured a single day drop early in the year where major investors dumped their holdings. For the first time since 2000, the price of the yellow precious metal declined year-on-year and, at -28 % as measured in USD, it was the steepest decline since 1981. Back then, the price of gold plummeted around 33 % in the course of the year.

While 2013 can be characterised as an uncertain, unstable recovery, it was clear as the year went by that there is increasing strength in some sectors, so that 2013 may in some reckonings end up being the transitional year before a true recovery. However, with the economy still apparently stuck at the starting gates in terms of growth, investment and unemployment, and with so many having become long-term unemployed, especially in Europe, it may take longer than usual for it to actually look and feel like a recovery.

Yves KuhnChief Investment Officer



Luxembourg’s economy continued its recent pattern: a fund industry posting stronger and stronger performance figures, a banking industry restructuring to face a new regulatory reality, and a non-financial sector showing decidedly mixed signs.

Net assets under management soar

The fund sector had a very positive year. The impact of the new Alternative Investment Fund Managers Directive regulations have begun to be seen.

In terms of performance indicators, the net assets managed by Luxembourg investment funds reached nearly 2.62 trillion at the end of December 2013, up 9.75 % from the figure at the end of 2012. The net sales of Luxembourg funds accounted for nearly half of the European fund industry’s sales. The number of funds and sub-funds increased during 2013 to reach 3,902, up 61 since the end of 2012 and 13,685 units, up 265 since the end of 2012. Nearly 100 new promoters have launched products here.

The financial sector, including banks, which accounts for 35 % of Luxembourg’s GDP, is undergoing significant change. Furthermore, the upcoming application of automatic exchange of taxation information has had a significant impact on private banking.

Chinese attractionHowever, the number of banks located in Luxembourg increased by six during 2013, bringing the number to 147 by year-end. Significantly, 2013 was marked by the continuation of the “invasion” of Chinese banks. Two major Chinese banks, the Industrial and Commercial Bank of China (ICBC) and the Bank of China have set up their European headquarters in the Grand Duchy. Since then as many as four others have shown such interest. Going along with this trend, there has been development of the Renminbi currency and dim sum bonds.

However, despite this growth, there has been a 1.5 % drop (annualised in 2013) in banking employment, leading to concerns about the future of this fundamental pillar of the economy. This contributes to the overall unemployment situation, up 10.93 % since 2012, reaching a new peak at 7.1 %.

New car salesOne important indicator of the health of the Luxembourg economy has traditionally been strong car sales. However, in 2013 car registrations dropped 7.5 %, with only 46,624 new registrations, making it the worst result for the local car sales industry since 2003. This has been taken as a sign that the crisis is finally affecting Luxembourg. Still, the country is still better off than other European countries – where car sales suffered even more.

International confidence, but domestic renewal

Luxembourg’s debt to GDP ratio was up at the end 2013 by 38.6 % annualised over a year earlier. It still fares well in international comparisons, evidenced by the major rating agencies affirming the country’s AAA rating. Still the Moody’s agency changed its outlook to “negative”.

The new government formed in 2013 has given a new team the responsibility to set government policy during a challenging period in both domestic and international political and economic affairs.

Luxembourg: some cylinders firing better than others

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175 years of Luxembourgish independence From an agricultural economy to a leading international financial centre. (Excerpted from BIL - Cahier économique)

De-industrialisationThe years 1975-1985 saw the de-industrialisation of the steel industry. External shocks contributed to this, such as the oil price increasing fourfold between June 1973 and January 1974, and President Nixon putting a unilateral end to the gold standard system in August 1971.

There were two major causes of this. Firstly, the steel-making process had become commonplace throughout the world, and was no longer the privilege of Europe and a few non-European countries. The production cost of European steel products was also relatively high.

In Luxembourg, the steel crisis had one specific, unique aspect: targeting the steel industry meant targeting industry as a whole. It sounded like a loss of sovereignty.

The governments of the time were able to restructure and reduce steel production capacity. […] In the meantime, the finance industry had replaced the steel industry in its role as a provider of wealth. There was a fortunate sequence of events – the fall of the steel industry and the rise of a financial centre – thus avoiding catastrophe. The overlapping of these two trends was unprecedented.

The origins of the Luxembourgfinancial sector

The origins of the Luxembourg financial sector date back to legislative and regulatory provisions made by the US and West Germany.

In order to reduce its balance of payments deficit, the US introduced its interest equalisation tax in 1963, making foreign securities more expensive. The response was simple: dollars and companies headed for Europe. This was the era of the eurodollar and the eurobond.

To combat inflation, the Bundesbank increased non-remunerated regulatory reserves between 1968 and 1974. In 1965, Germany introduced withholding tax on interest.

Following these measures, Europe attracted international bond issues. Luxembourg was the destination of choice; its still limited financial activities meaning that the legislative and regulatory provisions were less restrictive.

It is therefore not accurate to state that Luxembourg had a deliberate policy of attracting foreign banks, but it is true that it subsequently protected and extended Luxembourg's role as a financial centre.

The development of theLuxembourg financial sector

German banks established themselves in Luxembourg, taking advantage of the lack of regulatory capacity, with Luxembourg still lacking a central bank.

Luxembourg had several specific strengths: its favourable geographical position between Germany and France; political and social stability; its role as an exporter of steel products accustomed to international relations; its considerable foreign population testifiying to its openness to the outside world; it providing a home to the first European institution, the European Coal and Steel Community (ECSC) in 1952.

Banks from all over the world established themselves in Luxembourg and the financial centre grew. First, the banking sector itself: retail banking, private banking, corporate banking, insurance (particularly life insurance), custodian banks for investment funds, fund administration and distribution of fund units.[…]

The financial sector, as had been the case during the industrial era, had a domino effect. Firstly, there was a domino effect within the financial sector involving service providers such as audit and consultancy firms (the Big Four: Deloitte, EY, KPMG, PwC), law firms, transfer agents, etc. To this were added representative bodies for the financial sector: the Association des Banques et Banquiers, Luxembourg (ABBL – Luxembourg Bankers’ Association) founded in 1939; the Association des Compagnies d’Assurances (ACA – Insurance Company Association); Association Luxembourgeoise des Fonds d’Investissement (alfi – Luxembourg Investment Fund Association); the Banque centrale du Luxembourg (BCL – Luxembourg Central Bank) was created at the same time as the ECB, in 1998; the Commission de Surveillance du Secteur Financier (CSSF – Luxembourg Financial Supervisory Authority.[…]


There was also a domino effect in terms of other businesses providing services to the Luxembourg financial sector and its employees (26,744 people working in banks as of 2011, of which 20,426 were foreigners), e.g. restaurants, cleaning companies, etc.

If we were to compare the industrial era with the financial era in terms of tax revenues, the results would be as follows. In 2005, the finance sector generated 27 % of tax revenues or even 31 % if the indirect impact is considered. In 1938, the industrial sector produced 38.7 % of tax revenues. These two levels – 31 % and 38.7 % – are comparable in view of the fact that the Luxembourg economy was more diversified in 2005 than it was in 1938.

The financial crisisWe should distinguish between the deep-rooted causes of the financial crisis and the factor which triggered the crisis itself.

The deep-rooted causes can be split into two categories. Firstly, there were causes of the macroeconomic type: very plentiful liquidity, a global decrease in inflation, a widespread reduction in risk premia, a decrease in long-term yields, strong credit growth, and a rise in asset prices. Then came causes associated with the micro-economy: a disproportionate requirement for profitability (especially in the short term), excessive slackening of lending terms and huge marketisation (securitisation) of high-risk loans.

The notorious sub-primes triggered the financial crisis. […] Sub-primes are loans of low quality, with customers being less well-off or even unable to make repayments. The (fixed) rate is low for the first two or three years, then increases sharply for the remaining term of the loan. The system worked without too many hitches because property values were increasing and the Fed had left rates low. However, the Fed increased rates in order to stop the housing bubble expanding (too many sub-primes), and residential property prices plummeted. The system broke down, with many households facing bankruptcy, leading to their property being repossessed.

However, up to that point, the damage remained limited to the US. The reason it spread to the rest of the world can be explained in one word: securitisation. This is the conversion of mortgage loans – non-negotiable, in principle – into financial securities. […]

Using securitisation, banks could sell these securities and pass the risk onto others (e.g. insurance companies, investment funds, etc.). Banks can grant loans without the need to use their own funds.

What led to the crisis was the magnitude of the amounts at stake. In fact, everything was based on US residential property, and the bubble just suddenly burst. Europe, and therefore Luxembourg, was not spared, and financial deregulation in the 1980s increased Europe's difficulties.[…]

The financial sector replaced the steel industry as the prime mover of our economy at just the right time. The question is, what could replace the financial sector?

Gérard Trausch PhD in Economics


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Founded in 1856, Banque Internationale à Luxembourg (BIL) is Luxembourg’s oldest private bank. In the very year of its creation, BIL issued its first banknotes and was one of the few private establishments to retain this privilege until the introduction of the euro.

For over a century and a half, it has played an active role in developing the Luxembourg economy and that of neighbouring regions and is currently a mainstay of the financial sector through its retail banking, private banking, corporate banking and financial market activities.

With more than 2,000 employees, BIL is active in the financial centres of Luxembourg, Belgium, Denmark, Singapore, Switzerland and the Middle East.

Thanks to its vast experience and network of some 40 branches throughout the country, BIL is one of the leading players in the field of retail banking. It provides a comprehensive range of services to individual customers, SMEs and large businesses.

Internationally, BIL has an outstanding wealth management service supporting its customers through wealth analysis and planning as well as customised investment solutions.

Its activity on financial markets is carried out on a trio of trading floors located in Luxembourg, Singapore and Zurich.

BIL’s future is built on its four main business lines, both in Luxembourg and abroad. Thanks to a strong shareholder base – Precision Capital, a bank holding company incorporated in Luxembourg and subject to the consolidated supervision of the CSSF and the Grand Duchy of Luxembourg – the Bank boasts one of the best credit ratings in the country’s banking sector and is one of the top three banks of the Luxembourg financial centre.

Company profile


BIL has the ambition to be a universal bank even more solidly anchored in the Luxembourg market, able to distinguish itself by the excellence of its products and services, all the while being active on certain key international markets in the field of private banking and wealth management.

Solid with a strong foundation and the support of its shareholders, BIL anticipates long-term growth from revenues generated in Luxembourg and in strategic international markets. This growth will be driven principally through the sustained development of commercial activities.

More than ever, BIL and its multidisciplinary teams are mobilising and devoting all their efforts towards attaining a single overriding goal: complete customer satisfaction.

Strategic vision


BIL’s presence in Luxembourg


Belair HouseBelair House, a regulated multi-family office offers a broad range of services to wealthy families. From protecting, structuring and growing their wealth to assisting them in the day-to-day management of their assets, Belair House stands by its clients as an actor of their wealth.

BIL Auto LeaseBIL Auto Lease Luxembourg is an independent leasing company for all brands, offering automobile fleet management solutions.

BIL LeaseThrough this subsidiary, BIL offers financial leasing solutions for all professionally-used mobile capital equipment.

BIL Manage InvestBIL Manage Invest (BMI), a wholly-owned subsidiary of BIL Group, is an independent structuring specialist dedicated to the servicing of traditional and alternative investment vehicles. Acting as a third party management company, BMI offers a turn-key cost efficient regulatory hub to asset managers in search of a local external alternative investment fund manager.

ExpertaExperta plays a leading role in BIL's wealth management offering by providing corporate and investment structures as well as related services. Experta Corporate and Trust Services, with its team of 55 multilingual professionals, offers customised investment and holding structure solutions through the use of Luxembourg structures.

Belair House Tel.: (+352) 27 32 84 1 Fax: (+352) 27 32 84 91Address: 2, Boulevard Grande - Duchesse Charlotte • L-1330 LuxembourgE-mail: [email protected]

BIL Auto Lease Tel.: (+352) 26 44 16 30 Fax: (+352) 27 44 90 15Address: 42, rue de la Vallée • L-2661 LuxembourgE-mail: [email protected]

BIL Lease Tel.: (+352) 22 77 33 1 Fax: (+352) 22 77 44Address: 42, rue de la Vallée • L-2661 LuxembourgE-mail: [email protected]

BIL Manage Invest Tel.: (+352) 27 21 60 98 35 Fax: (+352) 27 21 60 98 38Address: 42, rue de la Vallée • L-2661 LuxembourgE-mail: [email protected]

Experta Tel.: (+352) 26 92 55 1 Fax: (+352) 26 92 55 33 66Address: 42, rue de la Vallée • L-2661 LuxembourgE-mail: [email protected]


BIL BelgiumThe new private banking branch in Brussels provides personalised wealth management and structuring services to families, entrepreneurs and expatriates, while also fulfilling the service needs of family offices and independent wealth managers. A staff of ten, including five senior private bankers, oversees customer relationships.

BIL SwitzerlandBIL Switzerland has been a leading international wealth manager for over 25 years and offers its expertise in the field of financial analysis and management. Its expert teams are made up of 70 staff, divided between the private banking centres in Geneva and Zurich.

BIL DenmarkBIL Denmark is specialised in wealth management and asset management services. Particularly involved in the Scandinavian community of entrepreneurs and senior managers, the Bank was converted in December 2013 into a branch of BIL Luxembourg with 38 staff.

BIL SingaporeBIL Singapore has been providing wealth management solutions and services to high net worth customers and professional asset managers since 1982. The Singapore office also serves as one of the BIL Group’s three operational dealing floors and private banking multi-booking centres. BIL is currently the only Luxembourg bank with a presence in Singapore.

BIL DubaiIn the Middle East, the focus is placed on regional customers with significant financial wealth, both with respect to their family and their business activities. Its cooperation with Luxembourg, Switzerland and Singapore is very intense.

BIL’s international presence


BIL BelgiumTel.: (+32) 2 740 4511 Fax: (+32) 2 740 4590Address: Avenue de Tervueren, 153 • B-1150 BrusselsE-mail: [email protected]

BIL SwitzerlandTel.: (+41) 58 810 8292 Fax: (+41) 58 810 8271Address: Beethovenstrasse 48, Postfach • CH-8022 ZurichE-mail: [email protected]

BIL DenmarkTel.: (+45) 3346 1100 Fax: (+45) 3332 4201Address: Grønningen 17 • DK-1270 København KE-mail: [email protected]

BIL SingaporeTel.: (+65) 6435 3341 Fax: (+65) 6536 0201Address: 9 Raffles Place #29-01 Republic Plaza • Singapore 048619E-mail: [email protected]

BIL DubaiAddress: Gate Village 2, Dubai International Financial Centre, United Arab EmiratesE-mail: [email protected]


Corporate governance

Board of Directors

Management Board


Chairman

Frank Wagener

Vice Chairman

George Nasra - CEO, Precision Capital SA

Chairman

François Pauly

Vice Chairman

Pierre Malevez - Finance and Risks

Members

François Pauly - CEO, Banque Internationale à Luxembourg SARobert Glaesener - CEO, Trendiction SASarah Khabirpour (1) - Premier Conseiller de Gouvernement, Ministère des FinancesJacques Lanners - CEO, Ceratizit SAFrançois Moes - DirectorEtienne Reuter - Premier Conseiller de Gouvernement, Ministère des FinancesJacquot Schwertzer - CEO, Energus SA

Michel Scharff (2) - Employees’ Delegation, BILSerge Schimoff - Employees’ Delegation, BILDonny Wagner - Employees’ Delegation, BILFernand Welschbillig - Employees’ Delegation, BIL

Members

Thierry Delroisse - Chief Operations OfficerAdrian Leuenberger - Wealth and Investment Management Marcel Leyers - Corporate and Institutional Banking Claude Schon - Treasury and Financial MarketsChristian Strasser - Retail Banking

Pia Haas - AuditCarole Wintersdorff - Legal and Corporate Secretary

(1) until March 1, 2014 (2) from January 1, 2014

Chairman

François Moes

Members

George NasraFrank Wagener

Audit and Compliance Committee

Chairman

Frank Wagener

Members

Robert GlaesenerEtienne Reuter

Chairman

Jacques Lanners

Members

George NasraEtienne Reuter

Risk Committee

Strategy Committee

Chairman

George Nasra

Members

Sarah Khabirpour (1) Frank Wagener


Remuneration and Nominations Committee

(1) until March 1, 2014

History of BIL

From 1856 to 2012Banque Internationale à Luxembourg, the first public limited bank in Luxembourg, was founded on March 8, 1856, to provide financing for the railways and the iron and steel industry of a country that was at that time predominantly agricultural. The same year, it issued its first banknotes and was one of the few private establishments to retain this privilege until the introduction of the euro.

March 1982BIL inaugurated its subsidiary in Singapore.

July 1985The Bank commenced its private banking activities in Switzerland.

October 1989BIL moved into its newly-built offices on route d’Esch in Luxembourg. To commemorate the 150th anniversary of the independence of the Grand Duchy, the building was named "L’Indépendance".

November 2000BIL commenced its private banking activities in Denmark.

September 2002Experta Luxembourg was formed to offer custom investment and holding structure solutions.

November 2005BIL was set up in Bahrain.

October 2012On October 5, Precision Capital and the Grand Duchy of Luxembourg officially became the new shareholders of BIL.


2013 to early 2014June 28Creation of BIL Manage Invest in compliance with the requirements of AIFMD.

August 19The new BIL Belgium branch opened in Brussels.

November 6Fitch Ratings confirmed BIL's "A-" rating with a stable outlook and maintained its stand-alone rating.

November 20Standard & Poor's confirmed BIL's "A-" rating with a stable outlook.

December 18BIL set up a new private banking branch in Denmark.

January 10, 2014Founding of Belair House, a family office offering investment advice and wealth management.


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Thanks to the support of its two new shareholders, BIL was able to focus fully on its growth and development targets in 2013. It fulfilled its aim of consolidating its position in its home market and strategically expanding its presence abroad.

To meet the expectations of an increasingly demanding clientele, the Bank offers all-in-one solutions and personalised services. Every day, the Bank's teams work in this constantly changing world in its customers' best interests. Their skills, know-how and expertise are major strengths in providing customers with the support they need during the key events in their lives.

Local, accessible and availableBIL's forty branches in the Grand Duchy enable its customers throughout the country to take advantage of its experts' savoir- faire in terms of savings and investment, personal and property loans, taxation, wealth management and estate planning.

The Bank is able to respond to requests from customers in the heart of Europe at any time, either through its branches and private banking and corporate banking centres in Luxembourg or through its international network, more specifically aimed at customers from Eastern Europe, Russia, the Middle East, Asia and Latin America.

The branch concept was totally overhauled in 2013. The Indépendance, Dudelange, Echternach, Esch-sur-Alzette and Findel branches were given a makeover to provide a more modern, comfortable and efficient experience.

Their layout was optimised to ensure faster but equally discreet service and various service zones were created in response to new consumer practices. All branches offer free Wi-Fi and tables equipped with computers and iPads enabling customers to carry out their transactions on BILnet or to surf the Internet.

In a similar vein, and in view of the significant increase in various electronic means of payment, the Bridel branch became the network's first cashless branch so as to be able to focus exclusively on high value-added services.

Opening times were also changed to enable customers to meet their banker outside their working hours, with appointments until 7pm. The option to meet by appointment has also been extended to the entire network.

This wave of modernisation also impacted BIL's nearly 100 ATMs located throughout Luxembourg. In addition to making with- drawals and consulting accounts, the new generation of servibank+ machines enables banknotes to be deposited without having to open a night deposit account. This service is highly appreciated by retailers in particular, but is available 24/7 to all customers, be they individuals, business, self-employed professionals, local authorities or associations.

Customer satisfaction is at the very heart of our concerns and our actions


" When, in 2008, I decided to make my dream of opening a grocery shop a reality, I found BIL to be the financial partner I could rely on. With the help of the Société Nationale de Crédit et

d’Investissement and the Mutualité de Cautionnement et d’Aide aux Commerçants, I created the Épicerie de Contern. Subsequent positive experiences led me to embark upon a new adventure

in 2012, when I opened a grocery concession in the Maison de Soins Ste Zithe in Contern. The new servibank+ nearby, which has cash-in/cash-out functions, allows me

to reduce the amount of cash I hold. What’s more, BIL’s new electronic solutions make my life easier, meaning that I am free to concentrate on my business activities. "

Daniel Abrantes Boto, Épicerie de Contern


“When I got my hairdressing diploma, I wanted to be my own boss, working in my own salon with my own employees. My first salon allowed me to develop my experience of managing a small

business. In 2006, I was able to convince BIL to finance my building in Lintgen which is now the heart of a chain built up with the help of my two brothers. We currently have ten Ryanhair salons,

two byTom salons and two beauty salons with 120 employees across the country. BIL’s leasing agreement was the ideal solution for financing my hairdressing equipment. In 2014, I used this

kind of financing once again to buy 150 display screens for my salons.”

Thomas TrummerRYANHAIR


Committed to amulti-channel strategy

In order to guarantee the excellent quality and variety of its products and services, the Bank has further extended its multi-channel strategy, placing increased emphasis on the various electronic channels, namely BILnet, BILnet Mobile and MultiLine.

The web and mobile apps are even more user-friendly and have been enhanced with additional functions enabling BILnet to rank among the most comprehensive Internet banking services in Luxembourg.

Quick View for example, once activated, allows mobile Internet users to view their account balances and outstanding credit card balances quickly and in complete security, without having to enter an access code. Similarly, Quick Transfer enables low-value payment transfers to be made from a mobile device without a LuxTrust token.

The web offering is also intended for business users and independent financial advisers (IFAs) who can access a range of sophisticated tools and services such as BILnet Wealth Services. In 2013, the Bank saw a significant increase in in volumes of activity for these services.

BILnet Mobile now allows corporate customers to manage their personal or business accounts, both for account holders and their representatives, with single or joint validation.

As part of its “paperless” policy, the Bank has replaced the paper displays in its windows with dynamic electronic screens. BIL is the first bank in the Grand Duchy to make wide-scale use of this new technology which enables rapid distribution of practical information to customers and passers-by.

All of the IT teams' efforts were recognised by the "ICT Team of the Year Award 2013" which rewards the best practices and the best solutions on the market.


International expansionfrom Luxembourg

With its business and private banking customers in all four corners of the globe, BIL pursued its international expansion in the second half of the year by beginning to transfer activities in the Middle East from Bahrain to the new branch in Dubai, which has a larger team.

It also remains active in the financial centres of Zurich, Geneva, Singapore and Copenhagen. New entities were created in Brussels and Luxembourg in order to meet increasing market demand. In Belgium, since the summer of 2013, customers have been able to benefit from the expertise of teams located in the capital. In the Grand Duchy, in view of the requirements of the Alternative Investment Fund Managers Directive (AIFMD), the Bank formed its own management company, BIL Manage Invest (BMI).

As part of the Bank's aim of enhancing its service offering for ultra-high net worth individuals, BIL opened a new multi family office in Luxembourg-City: Belair House.

BIL provides an integrated international approach with the option of selecting where assets are recorded. In this way, it combines a local presence with flexibility for customers wishing to change residence or simply benefit from expertise in one country and facilities in another.

Proven performance…

The Bank continues to focus on service excellence and high-quality relationships with customers. Drawing on its investment expertise, it supports their projects by keeping in regular contact.

A comprehensive study of customers’ needs and expectations is therefore carried out, and after analysing their personal, professional, family and business situation, the Bank establishes an in-depth review of their assets as well as their short, medium and long-term objectives with the aim of optimising their individual situation.

This know-how was recognised by the finance magazine Euromoney, winning two distinctions in the 2014 Private Banking and Wealth Management survey: "Best Local Private Bank in Luxembourg" and "Best Private Bank for Super Affluent Clients in Luxembourg".


" Lemanik Asset Management is an independent management company offering advisory and risk management services to professionals in the investment fund sector.

We have dealed with BIL for a long time. Our relationship manager provided us with solutions that make our day-to-day financial activities easier, and the banking packages

for our employees are perfectly customised to their needs. BIL’s proactive employees and the speed with which they carry out my instructions have led to BIL becoming my main bank.

We certainly made the right choice! "

Philippe Meloni Lemanik Asset Management


" Very few people get to see what I make. As part of my business, I have developed processes to turn industrial diamonds into grains to be fixed to drill heads. BIL financed my project to modify

an industrial kiln to heat the diamond mixture to very high temperatures, and also helped me to invest in production optimisation equipment. "

Cédric Sheridan FOXMET


...sensitive to the needsof businesses

In parallel to supporting its private customers, BIL also supports businesses at all stages in their development. In this difficult macroeconomic environment, the resilience of these corporate customers has sometimes been subjected to severe pressure. The Bank was nevertheless able to play its role as a financial partner to both the public sector and small and medium-sized businesses as well as to large corporates by supporting strategic initiatives and projects in the Grand Duchy and abroad.

The Bank's integrated offering fulfils the needs of day-to-day financial management, medium and long-term financing, financial engineering and the monitoring of corporate investments.

BIL has thus positioned itself as a key player in Luxembourg's real economy by supporting, among many others, the investment projects from companies such as La Provençale, Euro-Composites, Freeport, Luxconnect and Luxpet. The Bank provides them with its full backing, in line with their financial interests.

In the specific area of real estate, the Bank continued to innovate within the context of its project selection and active risk management processes. Centralising these activities within a new Real Estate desk enabled the Bank to improve its expertise in this area and secure good opportunities on the one hand and, on the other, to be able to assess the overall property market situation accurately.

A strong presence

Our activities in the retail banking, private banking, financial markets and corporate areas in 2013 were supported by a large number of campaigns, including one for the new wealth management offering, the launch of the new private banking website, advertising aimed at Portuguese-speaking customers, ever more transparent pricing, the launch of the new “Billy” programme for young customers and the organisation of the 15th Milestones conference, all of which confirm BIL's return to the financial centre.


BIL, a major player on the financial marketsVolumes for the Structured Products and Equities desks were kept at very high levels thanks to the stock markets, which benefited fully from low interest rates, easing yields on European debt and hopes of a return to growth.

The Trading Bonds desk is available on the Bloomberg platform, through the BILX page, to offer a better service to institutional customers. The bond market was able to capitalise on narrowing credit spreads and the global environment remained positive for bond trading despite the high volatility of long-dated yields.

In the context of the various new European regulations which enabled Correspondent Banking to expand its range of products and services (EMIR Reporting, SEPA Credit Transfer and SEPA Direct Debit), BIL confirmed its status as the bank for banks in Luxembourg.

In 2013, thanks to its vast experience and expertise in the area of origination and syndication, it was entrusted with two Luxembourg government bond issues. The Bank's bond structuring and distribution expertise contributed significantly to the success of these issues. It was also appointed as the financial agent for the bond maturing in 2028 and ensured the success of the very first launch of bonds using the new LuxCSD domestic clearing system.

With regard to raising long-term financing for its own endeavours, the year was noteworthy for the Bank's return to the capital markets. The first bond issues in the form of private placements with institutional investors testified to the renewed confidence in BIL's financial strength.

The product range was expanded thanks to a new desk trading interest rate derivatives, thereby enabling internal cashflows to be optimised. In a market in which spot transactions and options trading were down, the Forex team pursued its sales efforts with banks and financial institutions in France, Switzerland, Belgium, Italy and the Middle East, as well as in the Luxembourg financial sector.

BIL's Treasury, taking advantage of its surplus liquidity, regained its status as a counterparty recognised by the market as a cash lender. In order to optimise the diversification of its investments as sources of financing, the Bank is now an active member of Eurex Frankfurt, an international platform on which a large number of reputable institutions trade tripartite repos.

A liquidity buffer continued to be built up using a bond portfolio, with new investments totalling EUR 1.6 billion. The portfolio amounted to EUR 4.6 billion as at the end of December 2013, enabling the Bank to comply fully with liquidity ratio requirements (LCR and NSFR). Surplus liquidity is still considerable and is deposited daily with the Luxembourg Central Bank.


"Over four generations, my family has worked to make our business the largest plumbing, heating and ventilation company in Luxembourg. Transformation and modernisation projects would not have been possible without the support and advice of a good financial partner. BIL has

been helping us to grow since Octave Reckinger founded the company in 1911. Their proactive employees understand our trade and listen to what we have to say. The innovative solutions

offered by our relationship manager meet our requirements perfectly. "

Michel Reckinger Reckinger S.A.


" I became an independent joiner in 2001 when BIL helped me to finance the purchase of the Schräinerei Olivier Conrardy. Twelve years later, we made the decision to purchase

the entire shop floor, which had been rented up until that point. BIL was my financial partner once again for this project, helping me to complete it successfully. Supported by around a dozen

employees and a bank that fully understands the needs of my business and the reality of my local market, I feel ready to face the challenges laid down by my customers."

Constantin JacquesAtelier de Menuiserie Design


BIL has over 158 years of commitment to customer service in areas as diversified as:

• retailbanking,throughitsbranchnetworkintheGrandDuchy• privatebanking,withitscentresofexpertise in Luxembourg and abroad• bankingforSMEs,largecompaniesandprofessionals• financialmarketactivities

We commit ourselves to developing specific offerings for each banking need and to offering innovative solutions for each customer profile. We offer a wide range of investment and credit products as well as offerings based on transactional services, custody and wealth planning. Our goal is to be attentive to our customers, to truly understand their expectations and needs so that our staff can develop the most appropriate response to their specific personal situations.

A bank with a human face


Private BankingBernard Hutlet

Corporate BankingTom Lessel

Wealth Analysis & Planning Stefania Bidoli

Retail BankingRaoul Stefanetti

Retail Banking Fabienne Hemmen

Private Banking Laurent Terrens

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BIL raises its international profile

Encounters with the World Bank and the IMF

Every year, the Annual Meetings of the World Bank Group and the International Monetary Fund (IMF) enable senior managers from the public and private sector to participate in meetings focused on major world issues connected to the world economic outlook, the fight against poverty, economic development and the effectiveness of aid. Representatives from 188 countries took part in this ambitious event which took place in Washington DC on October 11 to 13, 2013.

On the occasion of these meetings, BIL invited around one hundred key figures to a private reception at the Four Seasons hotel in Washington. These prestigious guests included Finance Minister Luc Frieden, the first-ever Luxembourgish chair of these Annual Meetings.

Promoting Luxembourg as a financial centre

Luxembourg for Finance (LFF) was founded in 2008 with the aim of promoting Luxembourg's financial expertise and wide range of services abroad. LFF examines development opportunities for the Grand Duchy and presents the country's financial products and services in their legal and regulatory framework.

BIL actively contributes to the efforts of the agency, a public-private partnership between the Luxembourg Government and the Luxembourg Financial Industry Federation (PROFIL). In addition to developing communication tools intended for various target groups and markets, the agency organises seminars in international financial centres and takes part in world-renowned specialist trade fairs and congresses.

In the course of 2013, the Bank took part in several initiatives arranged by LFF, notably in China, Dubai, Kazakhstan and Turkey.

A new opportunity: the renminbi

In November, BIL welcomed the ambassador of the People's Republic of China to Luxembourg, His Excellency Zeng Xianqi, and Luxembourg's ambassador to China, His Excellency Paul Steinmetz, to a conference organised by the China-Luxembourg Chamber of Commerce (ChinaLux).

The topic of this conference was the internationalisation of the renminbi (RMB, the official currency of the People's Republic of China) and the numerous benefits for Luxembourg in this buoyant market. The Grand Duchy is currently Europe’s main hub for RMB activity, a target market for BIL's cross-border expertise.


BIL conferences

Milestones conferencesEach year, BIL’s Milestones conferences welcome internationally-renowned speakers, respected throughout the world for their achievements in economics, politics and business.

Milestones speakers1. Karel van Miert (2002)2. Helmut Kohl (2003)3. Javier Solana (2003) *4. Mikhail Gorbachev (2004)5. Jacques Rogge (2004)6. Michael Porter (2005)7. Madeleine Albright (2005)8. Gerhard Schröder (2006)9. Al Gore (2007)10. Jean-Claude Biver (2007)11. Kofi Annan (2009)12. Muhammad Yunus (2010)13. Rudolph Giuliani (2011)14. Nouriel Roubini (2012)15. Joseph Stiglitz (2013)

* Conference organised by the Edmond Israel Foundation

Professor Joseph E. Stiglitz, the 2001 laureate of the Nobel prize for economics, accepted BIL’s invitation to speak at the 15th

Milestones conference. Professor Stiglitz, who teaches at the prestigious Columbia University in New York, is also the author of several books including The Price of Inequality and Globalization and its discontents, a global best-seller published in 2002 and translated into around thirty languages.

In his presentation before an audience of 800 guests at the Luxembourg-Kirchberg Conference Centre on November 25, the professor stressed the importance of combating unemployment, in particular among young people, because it is depriving a whole generation of Europeans of their future. Entitled The Financial Crisis and the State of the Economy, his analysis threw light on the harmful effects of inequality. The professor showed himself to be a staunch opponent of austerity as a response to the crisis and explained the vital structural reforms that the Eurozone will need to adopt if it is to conduct an effective policy of growth and investment.

The students of the International School of Luxembourg highly appreciated having been invited to attend the press conference with the eminent Prof. Stiglitz.

"His discussion on the state of the European Union with reference to fiscal Keynesian policies and the benefits of comparative advantage vis-a-vis trade diversion and trade creation in the common market directly converged with the current economic topics of study in their International Baccalaureate diploma program. To the excitement of the students, Prof. Stiglitz was able to engage with them allowing them to make use of their knowledge base in economics, answer questions and dispel any uncertainties within the scope of the discourse."

Dr James Mulli Teacher/Upper School/Business and Economics


Phare conferencesIn addition to the Milestones conferences, BIL regularly organises Phare conferences at its headquarters.

Stéphane Garelli, a professor at Lausanne University (HEC) and at the International Institute for Management Development (IMD), spoke at the first conference. A renowned expert in the field of global competitiveness, he is also the Director of the IMD’s World Competitiveness Center, which publishes a ranking of the world's most competitive countries each year.

During his presentation entitled From global to fragmented: a global competitiveness outlook and its impact on Luxembourg, the professor presented his view of global economic developments.

In the second conference, BIL's Chief Investment Officer Yves Kuhn shared his “Financial and Economic Outlook”, focusing on BIL's 2013 macroeconomic forecasts at both European and international level. He explained changes in equity and bond markets and sovereign bond yields before presenting BIL's investment strategy.


Civic and social responsibility

The humanitarian and social programmes of many organisations are a key part of the Bank's solidarity policy. BIL's commitment goes beyond mere financial assistance to more subtle means of collaboration and support.

For instance, the Bank has replaced end-of-year gifts for its customers with donations to humanitarian organisations helping to improve the daily lives of the most vulnerable members of our society. The Bank would like to pay special tribute to the employees and volunteers who work at these organisations.

Fighting cancerThe fight against this disease takes place on several levels, and BIL believes that supporting patients and their families is just as important as scientific research.

In 1983, American Eugene W. Kanning left part of his fortune to cancer research. The Legs Kanning has since been managed by a committee comprising members of Action Lions Vaincre le Cancer and representatives from BIL. Each year, the organisation awards grants to cancer researchers.

The recipient of the 2013 Legs Kanning Award was Dr Simone Reuter. Ms Marion Orsini and Dr Judith Michels each received research grants for their projects.

The Fondatioun Kriibskrank Kanner (helping children with cancer) was founded in 1992, and its main objective is to support families with a child suffering from the disease. In concrete terms, it provides administrative and logistical support as well as the dedicated Maison des Enfants in Luxembourg and the Maison des Parents in Brussels, where most children from Luxembourg are treated.

BIL has worked with the foundation since 2006. The partnership was renewed in 2013 for the Together, we can be heroes initiative.

Helping those with severelearning difficulties

The Ligue HMC – a Luxembourg association for children, adolescents and adults with learning difficulties – celebrated its 50th anniversary in 2013. BIL took the opportunity to renew its support for the organisation, which has seen its role change dramatically over the 50 years since it was founded. It was initially set up to provide school lessons, but today it offers accommodation, training, jobs and activities to more than 300 people, supported by a team of around 100 staff.

BIL's second Lending a Hand competition was won by not-for-profit Tricentenaire association for its "Joëlette" all-terrain wheelchair enabling people with mobility issues to go hiking. This association was founded in 1979 to provide day-to-day support to those with learning difficulties More than 200 staff and volunteers enthusiastically dedicate their skills and energy to improving the quality of life for such people as well as their families.

The Lending a Hand competition aims to support various charities for which BIL employees volunteer.

Helping vulnerable children

Children are the most vulnerable members of society, and supporting them is particularly important to BIL. That is why the Bank decided in 2013 to provide more financial support to Fondation Lëtzebuerger Kannerduerf and SOS Kannerduerf Mersch.


Art and culture

In tandem with its original intention of contributing to the growth of the national economy, the Bank is a fervent admirer of art in all its forms. Over the years BIL has actively supported art and culture, making it one of the major partners on the Luxembourg art scene.

Its patronage policy is guided by the desire to make art accessible to all. It is for this reason that Parc Heintz and Jardins de L’Indépendance, which surround BIL’s head office, contain an extensive collection of sculptures that is open to the public and boasts exceptional works by Ju Ming, Marta Pan and Lynn Chadwick.

Galerie L’ IndépendanceThe Bank regularly organises exhibitions in-branch and at the Galerie L’Indépendance, which opened in 1995 – the year in which Luxembourg was named the European Capital of Culture.

In 2013 BIL used this gallery to showcase Luxembourg artists Charly Reinertz, Dani Neumann and Sumo, ending the year with Thierry Smets’ impressive comic-strip collection.

The gallery attracts many visitors – not just art devotees – to the opening of each exhibition. Several guided tours in the presence of the artist piqued the curiosity not only of cultural circles, but also of high school art classes, whose students were particularly interested in the artist’s discussion of the work’s technique and sources of inspiration.

As part of the Bad meaning Good exhibition, BIL organised a workshop that enabled 15 to 20-year-olds to get to grips with the techniques of spray paint art. At the end of this workshop, a BIL jury, of which Sumo formed part, rewarded the best work with a two-day trip to Berlin. The public could choose their favourite graffiti work on the Bank's Facebook page.


The works by Charly Reinertz display a sense of continuous reinvention, with the artist regularly letting go of the past to start afresh on a completely blank canvas. Reinertz imbues his creations with movement. This, along with his choice of subjects and his treatment of them, means that his works exude life. He carries this quest for vitality to the point of working on clothing, turning it into wearable art.

Dani Neumann is a protean artist whose work lies at a crossroads between abstract and figurative art, alternating vivid colours and darker hues. A skilled artist and engraver, her seemingly restrained work displays great expressiveness.

“Supporting art is rooted in BIL’s DNA. I’ve experienced it first hand thanks to the warm welcome from its management and the dedication of the people working there who helped me set up my Dreams are meant to be lived exhibition. This exhibition is the biggest and most important of my career. The light, grandiose space of the Galerie L’Indépendance lends itself admirably to the hanging of large pieces, and I’m flattered that my engraving currently adorns the new head office branch.”

Dani NeumannIndependent Artist


Brought up on graffiti in the 1980s before being classically trained in London, Christian Sumo Pearson has today become a leading light of the Street Art scene in Luxembourg and Europe. He also designed BIL’s debit card for 12 to 18-year-olds, which was rolled out in 2012.

The original comic strips signed by Hergé, Franquin and Moebius, which passionate Collector Thierry Smets wanted to share with the public, trace the history of the "ligne claire" – a movement based on the clean, regular lines of the 9e Art comic magazine.

Financial support from sponsors is essential for the continued existence of cultural and artistic activities across the board. This rationale prompted the Bank to set up the Fondation Indépendance in 1999, with the objective of promoting art and culture – particularly contemporary design – in all their forms.

In music, the Bank supports nationally and internationally renowned events such as Printemps Musical and the Echternach and Wiltz festivals.

BIL also makes concrete financial contributions to its employees' cultural activities, supporting the Bank’s Cercle culturel through its Gestion Paritaire des Oeuvres Sociales (GPOS – Joint Management of Company Benefits). The Cercle culturel is one of around 30 cultural and sports associations managed by employees and jointly funded by GPOS.

The European Fine Art Fair(TEFAF)

TEFAF is the world’s largest art and antiques fair. It is held annually in Maastricht, and since 2010 BIL has had the privilege of showcasing Luxembourg, under the patronage of the Netherlands Ambassador to Luxembourg, His Excellency Peter Kok. At this preview event, numerous guests can be the first to see some of the most beautiful pieces of this prestigious fair.


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