Overview of Banks in Luxembourg
Few might be aware that Luxembourg represents a leading global financial center reputed for its highly developed, stable, and diversified economy with banking and financial services forming a key component of its macroeconomic structure. It might be of some interest that consolidated banking assets exceed national GDP by no less than 15.60 times, which alone speaks volumes of the significance of banking to the country’s economy at large. To put things in a proper perspective, Luxembourg emerges as only the second largest investment fund center after none other than the US itself.
Out of a total of 141 banks in Luxembourg by the year-end 2016, 137 have a universal bankingUniversal BankingUniversal banking, in contrast to traditional banking institutions, offers a wider range of banking and financial services, including insurance, development banking, investment banking, commercial banking, and other financial services. license and four remaining banks in Luxembourg have a mortgage-bond banking license.125 are foreign financial institutions comprising of 79 subsidiaries and 46 branches of foreign banks. Only 20 of these 145 banks in Luxembourg are domestic, which should be enough to emphasize the significance of foreign banking and investment activities in the economy of Luxembourg. It would not be out of place to mention that the financial sector makes up for no less than a quarter of the GDP.
Top Banks in Luxembourg
Let’s take a look at the top 10 banks in Luxembourg and know them in detail.
#1 – Societe Generale Bank & Trust
This is one of the top banks in Luxembourg. Operating for nearly 120 years in Luxembourg, the bank was originally set up as a branch of Société Générale Alsacienne de Banque. Earlier known as Luxbanque Société Luxemburgeoise de Banque S.A., the bank was renamed as Société Générale Bank & Trust S.A. in 1995. This banking institution is reputed for its multi-specialist services which include securities services to institutional investors and private banking to high-net-worth individuals apart from corporate financing services in the EU countries and other parts of the world.
- Balance Sheet Total (in EUR Million) as on year-end 2016: 42,187.9
- Annual Net Profit or Loss (EUR Million): 310.1
#2 – Banque de Luxembourg S.A.
Banque de Luxembourg S.A. offers a wide range for financial products and services, and it has become one of the largest banks in Luxembourg from professional banking services to asset managementAsset ManagementAsset management is a method of managing funds and investing in both traditional and specialized products in order to generate returns consistent with the investor's risk tolerance. designed to meet the specialized needs of customers, both within Luxembourg as well as internationally. This Bank in Luxembourg includes managing investment funds, stock market investments, portfolio management and dealing in money marketMoney MarketThe money market is a financial market wherein short-term assets and open-ended funds are traded between institutions and traders. instruments among other things. Banque de Luxembourg S.A banks in Luxembourg also offers the entire range of wealth management services as well as private banking facilities. It is a subsidiary of Crédit Industriel et Commercial.
- Balance Sheet Total (in EUR Million): 13,414.8
- Annual Net Profit (2016): 63.1 million
#3 – BGL BNP Paribas S.A.
Established in 1919 as Banque Générale du Luxembourg (BGL), it went on to become a subsidiary of BNP Paribas Fortis SA/NV in 2009. Banque Générale du Luxembourg (BGL) banks in Luxembourg offer a wide range of financial services to individuals, businesses and institutional investorsInstitutional InvestorsInstitutional investors are entities that pool money from a variety of investors and individuals to create a large sum that is then handed to investment managers who invest it in a variety of assets, shares, and securities. Banks, NBFCs, mutual funds, pension funds, and hedge funds are all examples., some of which include retail and corporate banking, wealth management and corporate and institutional banking along with an array of international financial services to meet diverse needs of their customers. This BGL BNP Paribas S.A banks in Luxembourg boasts of the long-term credit rating of A1 (upper-medium grade) by Moody’s, providing it a competitive edge as a global lender of repute.
- Balance Sheet Total (in EUR Million): 33.933.3
- Annual net Profit (in EUR Million): 185.4
#4 – Banque et Caisse d’Epargne de l’Etat (BCEE)
Spuerkeess in Luxembourgish and Banque et Caisse d’Epargne de l’Etat
(BCEE) in French, this wholly-owned subsidiaryWholly-owned SubsidiaryWhen a company’s almost all of the outstanding shares are owned by another company (parent) then it can be said that it is a wholly-owned subsidiary of that company and it is controlled by the parent company. For example, Walt Disney Entertainment owns 100% of Marvel Entertainment which produces movies. of the state of Luxembourg was founded way back in 1856. This banking institution is well-known for both its retail banking and private banking services tailored to the individual needs of the customers. BCEE enjoys a long-term credit rating of Aa2 (high grade) as per Moody’s, showcasing the bank as a high-end lending institution.
- Balance Sheet Total (in EUR Million): 43,444.7
- Annual net Profit (in EUR Million): 240.5
#5 – Banque Internationale à Luxembourg S.A. (BIL)
Founded in 1856, Banque Internationale à Luxembourg is the oldest private banking group in the country, offering a variety of retail and corporate financial services along with specialized private banking operations. Banque Internationale à Luxembourg banks in Luxembourg are owned by Legend Holdings and the Luxembourg government with a long-term credit rating of A3 (upper-medium grade) by Moody’s.
- Balance Sheet Total (in EUR Million): 22,579.8
- Annual net Profit (in EUR Million): 129.8
#6 – Deutsche Bank Luxembourg S.A.
Deutsche Bank Luxembourg S.A. is a subsidiary of Deutsche Bank Aktiengesellschaft, founded as recently as 1970 and is a relatively new addition to the well-established banking industry of this country. They specialize in private wealth management, structured finance, tailor-made lending solutions to businesses of various sizes and assisting financial intermediaries, investors as well as issuers by fulfilling different financial roles.
- Balance Sheet Total (in EUR Million): 51,787.4
- Annual net Profit (in EUR Million): 1.067.3
#7 – UniCredit Luxembourg
UniCredit Luxembourg S.A. was established in 1971. UniCredit Luxembourg S.A banks in Luxembourg offers an entire range of financial & credit solutions to small and medium-sized enterprises along with structured finance services. Other areas of focus include treasury and business services, providing asset management solutions and developing specialized solutions for corporations, real estate clients as well as equity funds. UniCredit Luxembourg is a subsidiary of UniCredit Bank AG.
- Balance Sheet Total (in EUR Million): 20.271.7
- Annual net Profit (in EUR Million): 35.7
#8 – Intesa Sanpaolo Bank Luxembourg S.A.
Founded in Luxembourg as recently as 1976, Intesa Sanpaolo Bank Luxembourg S.A. banks in Luxembourg functions as a subsidiary of Intesa Sanpaolo Holding International S.A. The bank is well-known for offering personalized solutions in the areas of retail and commercial banking services. This bank also caters to varied needs of investment banking services as well for its clients. Earlier, the bank was known as Societe Europeenne de Banque S.A. and it was only in Oct 2015 that the name was changed to Intesa Sanpaolo Bank Luxembourg S.A.
- Balance Sheet Total (in EUR Million): 17.996
- Annual net Profit (in EUR Million): 122
#9 – NORD/LB Luxembourg S.A. Covered Bond Bank
Founded in Luxembourg city in 1972, NORD/LB Luxembourg S.A. Covered Bond Bank offers an array of financial solutions, products and banking services in Luxembourg, Germany, Switzerland, United States and a number of European countries. It is focused on issuing covered bonds and offers the entire range of currency management services along with sales and loans, B2B client services, account and deposit management among other things. Nord/LB Luxembourg S.A. Covered Bank functions as a subsidiary of NORD/LB Norddeutsche Landesbank Girozentrale and only changed its name to the current one in May 2015. It was earlier known as Norddeutsche Landesbank Luxembourg S.A.
- Balance Sheet Total (in EUR Million): 15,936.2
- Annual net Profit (in EUR Million): 31.2
#10 – DZ Privatbank S.A.
A subsidiary of DZ Bank AG, DZ Privatbank S.A. was established in Luxembourg in 1977 and has earned a repute for its robust banking services for private customers as well as corporations. It is involved in money market activities as well as foreign exchange transactions and offers a number of related services in keeping with the personalized needs of the customers. SZ Privatbank S.A. was previously known as DZ Bank International S.A. and adopted the current name only in July 2010.
- Balance Sheet Total (in EUR Million): 15.913.7
- Annual net Profit (in EUR Million): 11.3
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