360° - Activity report 2020

360

°

— 2020 Annual Report —

Build a stronger, better, more sustainable bank

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020 has been a year like no other. The pandemic has turned our lives upside down, having an impact on our projects, interactions and travel plans.

The pandemic has put people, that is you – our clients, employees, service providers and communities where we have a presence, at the heart of what we do.

While activity came to an abrupt halt, it was our duty to be there for all our personal and business clients, to face the economic and social impact of the Covid-19 pandemic.

We played an active role in drafting and implementing the memorandum of understanding under the coordination of the ABBL providing for a moratorium on business loans granted to Luxembourg companies. We also worked with the Luxembourg government to launch a state-guaranteed loans system, to provide additional support to businesses.

Right from the start of the crisis, it was important to prepare for the economic recovery crescendo. To stay close to our clients, all our branches remained open, adapting a range of measures to ensure safety, and of course, we encouraged them to use our digital services and contact us remotely.

During these uncertain times, we have adapted while remaining focused on our strategic objectives: s trengthen our position as banking partner > for businesses. be the go-to bank for investment solutions thanks to our > innovative products and high quality advisory services. evelop our wealth management services on > d the Chinese market with support from our shareholder Legend Holdings.

To achieve this, we have continued the bank’s numerous ongoing transformation projects and we have made significant progress towards a more sustainable approach.

Our keyword for 2021 and the years to come will be “rebuild”. The light at the end of the tunnel is already visible thanks to global vaccination programmes. Our shareholders, management team and BIL employees all share one common vision: to help create a sound and sustainable financial system. We are optimistic and believe that many new opportunities lie ahead.

This activity report will give you a 360° view of the Banque Internationale à Luxembourg group today. You will discover more about who we are, what we do, why we do it and for whom, and - more importantly - where we are going.

Zesummen, fir Iech Marcel Leyers, CEO

Table of contents Impressum Published by BIL Corporate Communications Project Lead: Vincent Pelletier

In collaboration with

www.maisonmoderne.com agency@maisonmoderne.com © Maison Moderne TM Maison Moderne est utilisée sous licence par MM Publishing and Media SA (Luxembourg).

Editors: Julien Menegalli Michaël Peiffer Vincent Pelletier Project Manager: Léa Guignard Creative Director: Jeremy Leslie Art Direction: Cassandre Bourtembourg Illustrations: Jeanne Detallante Maps: Guillaume Sinopoli Gradients: Leroy Design Proofreading: Laurène Heitzmann Translation: Kate Maidens Printing: Reka (Luxembourg)

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The Bank, its services and news One for all, all for the client!

A trusted partner Serving Luxembourg 360° access to BIL International private banking

06 08 10 12 16

Partnering investors and entrepreneurs Invest with confidence Goal-based investing A rising tide of alternative funds Trust and interpersonal skills are key Business partner and Covid crisis ally Responsive to SMEs’ needs Offering innovative banking solutions

20 22 24 26 28 30 33

A committed, modern bank Building the BIL of tomorrow Sustainable development goals Solutions over products Designed by BIL Increasing staff mobility Accelerating change in the workplace BIL’s active role in society

36 38 40 42 44 46 48

The Bank, its services and news

One for all, all for the client!

A trusted partner Serving Luxembourg 360° access to BIL International private banking

06 08 10 12 16

One for all, all for the client!

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As the BIL motto goes: one for all, all for the client! It’s our main objective too.

The Bank is constantly improving and with every change our objective remains the same: to put the client at the centre of everything we do.

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While our main objective is to meet our clients’ needs, in doing so, we’re guided by our core values: collaborate, create and care. These enable us to find the best solution and the best product.

4

BIL is the go-to partner for businesses. Since its creation in 1856, BIL has played a key role in the main stages of development in Luxembourg’s economy, from the railways and steelworks to today’s most innovative start-ups. This legacy drives us to promote innovation and support entrepreneurs with their projects, as was the case during the pandemic.

Thanks to BIL’s main shareholder, Legend Holdings, new links are being built with China.

The Bank is well placed to help its clients reach their commercial goals and offer investment opportunities in Asia, thanks to its network between Luxembourg, Switzerland and China.

2055

5

Care has always been at the heart of what BIL does. Human capital is one of our biggest strengths and the Bank cares for its employees – especially during these pandemic times, where adapting quickly to change is important. Despite the many challenges this period presents, it was the opportunity to reinvent ourselves and for all employees to establish a “new way of working”.

52.65%

employees

men

47.35% women

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l ia

tivit y c a

2020

Comm

Pe rf

er c

nce a m r o

101

million euros Net income after taxes

555

43.7

million euros Total revenues

billion euros assets under management

19.8

13.44%

billion euros (+4.1%) customer deposits

CET1 ratio

15.4

billion euros (+4.8%) customer loans

329 millions s g n

Ra ti

invested in sustainability bonds within the Bank’s investment portfolio

A2/P-1/Stable Moody’s

45

A-/A-2/Stable

nationalities

Standard and Poors

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A trusted partner The banking sector is heavily regulated and regulations change often.

We meet Laurence van Zuylen, Head of the Regulatory and Supervisory department at BIL.

Can you explain the background behind the banking sector’s regulatory framework?

The current banking regulatory environment is heavy. Banks must comply with extremely detailed regulations relating to customer protection, anti-money laundering and risk management, for example, to ensure their integrity and solidity.

The majority of regulations in recent years result from the 2008 financial crisis (and the European debt crisis). The European banking union was created in response to this crisis, which imposed a set of common rules on all banks in terms of capital requirements and a common system for deposit protection. The banking union also established a single supervisory mechanism, overseen by the European Central Bank in collaboration with national authorities, along with a single resolution mechanism to prevent and handle failing banks.

To understand the current regulatory environment, you have to go back to a central notion: trust. Banks exist and financial markets operate on the trust that clients and investors place in them. This trust is essential, and for that, the banking sector must be sound and robust. Governments and legislators wanted regulation to play this role. For banks, regulation represents huge investments, but it’s also their ally and an asset in the eyes of their clients. This is also what sets them apart from financial players like GAFA or fintech companies.

How has regulation changed over the past few years?

The regulatory pressure on banks remains high.

Regulation is a nature of the times and changes are determined by events, behaviours, moral values and technology. The banking sector is no exception to this rule. For example: the 2008 crisis produced MiFID II and the banking union; the Paris terrorist attacks resulted in the fifth directive on anti-money laundering and terrorist financing; and the digital transformation brought about a revised directive on payment services.

What impact has the pandemic had on banking regulatory framework?

The Covid-19 crisis has slowed down the adoption and entry into force of certain regulations.

However, it has highlighted the role of financial supervisory authorities. All BIL Group entities respond to one or more authorities: the European Central Bank, Commission de Surveillance du Secteur Financier, or even foreign supervisory authorities such as FINMA (the Swiss supervisory authority). Since the onset of the crisis, these authorities have been concerned about maintaining a stable financial system, by ensuring banks are ready to absorb the shock, and they’ve done everything in their power to maintain business activity during the pandemic and to prepare for the next step. Again, it shows the power of regulation, and that the bank does not see it as a constraint but as a way to improve its services time and again. It represents real added value for our clients.

“ The banking sector’s regulatory framework represents real added value for our clients.”

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Serving Lux The Bank’s three core areas of expertise In Luxembourg, the Bank’s domestic market, BIL offers a whole range of banking services for everyone from personal and business clients, financial institutions and public bodies.

Corporate and institutional banking The Bank offers leading financial services designed especially for businesses and institutions. From the self-employed, SMEs and start-ups to major companies and public institutions, clients receive bespoke solutions in capital markets, securities services, financing solutions and cash management. Since its creation in 1856, BIL has played a key role in the main stages of development in Luxembourg’s economy. BIL continues to be the go-to partner for businesses today, playing an important role in financing companies in the Grand Duchy of Luxembourg.

Retail banking

Private banking

With its large branch network and online services throughout Luxembourg, BIL offers personal clients valued expertise in banking management, financing solutions and savings and investment.

The Bank advisors support its clients with their projects every step of the way: from buying a home to financing a child’s education, investments or preparing for retirement.

The Bank’s products and services are also easily accessible via BILnet, its secure, user-friendly online platform. BIL is set apart from the rest thanks to its cutting-edge technology and innovative banking services, like mobile banking, cardless cash withdrawals, biometric authentication, contactless payments and instant payments.

BIL helps private banking clients protect, grow and manage their assets, today and for future generations.

Wealth management advisors and BIL’s associated services are structured as such to meet the individual needs of clients and their personal or professional situation, providing bespoke solutions adapted to their short-, medium- or long-term projects.

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Universal bank

embourg BIL group’s specialised subsidiaries BIL group’s subsidiaries offer financial services and solutions to businesses, asset managers, companies and business investors based in the Grand Duchy.

1st independent bank

Belair House Belair House Family Office and Investment Management assists wealthy families in protecting and growing their assets, generation after generation. The multi-disciplinary teams at Belair House are experts in financial, tax and legal matters, and collaborate fully with families trusted external partners (accountants, lawyers, asset managers…).

BIL Fund & Corporate Services* offers tax, legal and accounting services for fund administration, as well as domiciliation and investment fund management worldwide. This BIL subsidiary also offers financial and real estate wealth structuring solutions to private and institutional investors as well as businesses.

BIL Lease

BIL Manage Invest (BMI)

offers financial leasing solutions for equipment such as cars, utility vehicles, building and public works equipment, industrial machinery, medical and surgical equipment, and IT equipment.

specialises in structuring traditional and alternative investment funds. BMI offers a wide range of services through its open architecture, in particular fund structuring, portfolio and risk management, and proxy monitoring.

1,810 associates

> than 160 branches and ATMs

supporting clients in Luxembourg

across the country

*The acquisition of BFCS by Zedra, announced 25 March 2021, is subject to regulatory approval from Luxembourg’s financial regulator.

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360° access to BIL T

he world of banking services has changed dramatically over the past few years. As digital apps have become the norm, clients today are more connected and better informed.

Fast, flexible and practical: it’s what clients expect when handling their day-to-day banking operations.

They also want personalised advice when embarking on a new project.

And this is where BIL’s employees truly stand out. The Bank’s strategy is to the point: “more digital, more human”. Digital can’t replace humans, but it does, however, enable advisors to spend more time concentrating on their clients’ life goals.

To meet expectations, BIL has increased its range of services and its distribution network.

With this 360° approach mixing human and digital, BIL can offer the right service, at the right place, at the right time. So for every customer request, there’s a special point of contact, adapted tool and advisor on hand, providing non-stop access to all the Bank’s services.

For physical access, BIL’s branch network criss-crosses the country.

The branches have been fully re-designed to meet clients’ advisory needs. For remote access, a team of advisors are on hand at BIL Direct Center, answering questions and helping clients with day-to-day operations. For digital access, the Bank’s online platform BILnet gives users access to all the Bank’s services 24/7. BIL customers can conduct transactions anytime, anywhere.

360° access to these services is essential for maintaining close client relationships.

BIL’s new-look branches Since May 2020, to meet changing client needs, BIL now offers three new types of branches which embody our philosophy: more digital, more human.

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lients’ needs have dramatically changed over the past 20 years.

Thanks to the digital transformation in banking services, clients are more independent when it comes to managing their accounts. Day-to-day operations can be done anywhere, anytime. The Covid-19 pandemic has accelerated this trend, even amongst those most reluctant to using online services. However, with increased independence, they expect their advisor to offer more advice and more expertise when planning for the future to meet their goals, like buying a house, financing a child’s education or preparing for retirement.

Confronted with such change, BIL has redesigned its branches to act as advice and support hubs: advice for clients looking to get answers and solutions for life events or professional projects; and support for those taking their first steps into BIL’s digital world.

Our branch repositioning is in synergy with BIL Direct Center, the Bank’s call centre where teams are on hand by phone or secure messaging. By developing our branches and remote services, BIL remains true to its philosophy: a more digital, more human bank. For BIL, a branch is much more than just a building, it’s first and foremost all the men and women who work there.

Office, Shop, House In 2020, BIL decided to introduce three new branch formats (see right) to better meet our customers’ needs. What binds them is the importance put on human interaction, and the aim being to foster exchange between staff and clients. Therefore, the space was re-designed to enhance the bankers’ role, with a larger area for one-to-one meetings. For our busiest branches, clients are welcomed by a member of staff manning the front desk, ready to answer any questions. Staff are open and attentive as they help clients navigate BIL’s products and services.

The Bank is transforming its services and branch network in order to adapt to demographic, technological and consumer behaviour changes. Our branches will always be here in

the future, as the need for advice will certainly increase. And with the increase in mobile working tools, who’s to say that it won’t be branches and bankers going directly to clients – and not the other way round.

3 types of branches: “Office” branches focus exclusively on advice and supporting clients with their projects. Relationship Managers are available by appointment over a wide range of hours. The majority of BIL’s branches are BIL Office.

“Shop” branches have an added “information and digital support” element. Not only are they for clients looking for advice concerning their future projects, but also for those who require occasional support with online banking.

At “House” branches, not only can you book an appointment with an expert for advice and get help with online banking, but staff are also on hand for over-the-counter services like cash withdrawals or deposits.

In short, it’s the traditional branch concept.

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Connected banking Keeping connected with clients remotely BIL’s number one goal is to listen to our clients’ needs and provide quality service. This is where the BIL Direct Center teams step in.

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he BIL Direct Center (BDC) teams are responsible for dealing with clients’ requests and comments remotely, but also for guiding and assisting them in their day-to-day operations, making them experts in the art of customer satisfaction. Be it by phone or via BILnet secure messaging, our advisors can respond in five different languages and help new clients open an account online. Let’s just say that versatility, flexibility, dynamism and technical skills are prerogative of all BDC team members!

It’s clear that the Covid-19 pandemic caused BDC’s level of activity to skyrocket. Out in front was digital assistance, due to the rise in the number of users. BILnet became clients’ most preferred method of communication, but also a vital tool for managing their finances. For a rough idea, the number of messages received went from 8,000 a month to 11,000 last January.

Even the most reluctant have gone digital, accelerating a trend that was present well before the health crisis, and will undoubtedly exist beyond it.

This increase in activity is obviously not without consequence on the running of BDC. To continue providing the best service possible and satisfactory customer service response times, the teams have been bolstered by the arrival of new team members.

While BDC staff have solid knowledge in all areas of banking and finance, they may also transfer more complex queries to the Bank’s experts. Collaboration and interactivity are key for successfully carrying out their job. Just like those in the technical hotline team, who

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are constantly in touch with IT staff, for the latest updates and information related to the BILnet app.

Whatever the contact method or circumstances, people are at the heart of BDC’s mission. Behind every call, every message, there is a person with a particular need. The teams are aware of this and every day give their undivided attention and apply their full skill set when helping and assisting all of BIL’s clients.

My bank: wherever, whenever The BILnet app has been met with overwhelming success and is one of the most popular downloads on app platforms.

Almost 20 million log-ins are registered on the app each month. With their “bank in their pocket”, customers connect around 20 times per month on average. This trend should increase in coming months, as new functions and service upgrades are constantly added to the app.

24/7 banking Online banking services are an essential cog in the BIL wheel.

With BILnet, clients now have access to their bank right at their fingertips, anytime, anywhere. We chat with Didier Richter, Head of Daily Banking & Payments at BIL.

What is BIL’s digital strategy?

First of all, BIL wants to provide its clients with accessibility, 24/7. We’re developing digital tools that will enable this, without, strictly speaking, becoming an internet bank. Digital banking is an essential tool for our clients, which complements services offered by our advisors in-branch or via BIL Direct Center.

With the BILnet app and our secure website, clients can carry out day-to-day operations, like checking their accounts, making a transfer or asking a question quickly and easily from their smartphone or computer.

With a fully secure app like BILnet, clients also have access to other partner services such as Digicash, to third parties like Apple Pay, or to services like Pay at Pump. Clients with a Fitbit or Garmin smartwatch can also use it to make payments.

Is it a way of providing greater accessibility for customers?

Absolutely, our clients can access our services even when our branches are closed, which is particularly useful during these current pandemic times. When a user sends a message via BILnet,

it’s automatically directed either to their Relationship Manager or to BDC, depending on the issue. The digital teams work closely together with BIL Direct Center (see left) to keep in constant contact with clients and provide assistance with BILnet.

What changes can we expect to see in the future?

We’re seeing three major trends: more speed, more mobility and more openness.

Operations made have become increasingly faster. In July 2020, we introduced instant payments. People’s need for speed won’t slow down, and as a result, the amounts authorised for instant payment will change too.

More mobility, as clients are connecting more and more via their smartphone. It’s already the most popular way for clients to log on and this trend should increase further. Clients with BILnet log on almost everyday via their smartphone.

More openness thanks to open banking. The various banking sectors are going to open up one after the other, and, if the client wishes, these additional services can be combined with the Bank’s existing offers via its app.

“ Clients with BILnet log on almost >than 90% everyday via their smartphone.” of our clients are connected to BILnet (18-80 year-olds having used BILnet in the past 6 months).

70% 50%

the percentage of BILnet users who use their smartphone to log on

of transactions are done via the mobile app

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Despite being a Luxembourg banking establishment, BIL’s name points otherwise to its international dimension.

For private banking and wealth management, the Bank has two main expert hubs based in Luxembourg and Switzerland.

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ealthy clients have had a change in profile in recent years: they’re now more sophisticated, more international, and more demanding too. However, BIL’s objective remains the same: be their trusted partner to help them protect, grow and manage their assets, generation after generation.

At BIL, clients enjoy a special relationship with their dedicated private banking expert who understands their needs and offers bespoke solutions. An entire team of professionals are placed at the client’s disposal, giving global support and interconnecting all wealth areas. The team and associated services take a client’s needs and personal and professional situation into account, offering tailored solutions, be it for a short-, medium- or long-term project for the future.

When it comes to investments, BIL looks long-term. Thanks to discretionary mandates, BIL offers personalised portfolio management adapted to the ever-changing economic environment. For clients who wish to be more involved in their portfolio management, the Bank offers investment solutions advice. Over the past few years, the Bank has focused on developing its range of investment solutions, offering unique and innovative products. In 2018, BIL launched its first alternative investment fund, BIL Private Equity I. This fund invested in three funds managed

by Legend Capital which target investments in Chinese companies in the tech, media, telecommunications, healthcare and semiconductor industries. After this initial experience, in 2019 the Bank launched the BIL Real Estate I fund, this time in partnership with a local investor, Quilvest Capital Partners.

Because our clients’ issues now cross borders, BIL has established itself in different regions across the world. Thanks to our interna-

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tional teams located in Luxembourg, Denmark, Switzerland and China, the Bank has a perfect understanding of cross-border and international issues. Here’s a roundup of the latest news in the latter two countries.

Switzerland 2020 was a year of major change at BIL Suisse.

New management at the helm were soon joined by new recruits. Its objective: to implement an ambitious international growth plan supporting the group’s overall strategy. As one of the group’s two main private banking hubs, BIL Suisse focuses on serving private clients, many of whom are entrepreneurs from Eastern and Western Europe, as well as Russia, the Middle East and China. This clientele is looking for stability, expertise and unparalleled service. In 2020, BIL Suisse was rewarded for its efforts with the WealthBriefing Award for Best Client Initiative.

China Legend Holdings became BIL’s major shareholder in July 2018. Backing from the Chinese group opened up new development leads. The Chinese market undeniably presents considerable commercial prospects and opportunities. In September 2019, the Bank opened its Beijing Representative Office, becoming the first Luxembourg financial institution to establish a physical presence in the country. Six months later, expansion continued with the opening of BIL Wealth Management Limited in Hong Kong. As BIL’s main operational entity in Asia, it’s a key element in the Bank’s development strategy in China.

BIL Wealth Management Limited will spearhead the Chinese wealth management and asset management market. It’s the link between China and Europe, whose mission is to further customer acquisition, strengthen investment capacity, and expand its range of products for European and Chinese clients.

€43.7 billion assets under management as of 31/12/2020

Best Client Initiative Wealthbriefing Swiss Award 2020

Partnering investors and entrepreneurs

Invest with confidence Goal-based investing A rising tide of alternative funds Trust and interpersonal skills are key Business partner and Covid crisis ally Responsive to SMEs’ needs Offering innovative banking solutions

20 22 24 26 28 30 33

Invest with confidence There are many different ways to invest.

BIL’s strength lies in its ability to support every client in the investment world by offering adapted solutions based on trust.

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s a universal bank, BIL is in the position to assist all types of clients, from personal customers and investors to business owners living in Luxembourg or abroad. And as expectations vary widely, the Bank has a large range of “in-house” financial products and services, from investment funds catering to all types of investors, to more sophisticated Private Equity or Real Estate products for the more experienced investor. Thanks to its open architecture, BIL can also offer investment products from other financial institutions. For clients looking

for more personalised support, the Bank also provides advisory and discretionary management services.

Being a BIL client means having a wide range of financial products and services at your disposal and tailor-made to individual needs.

Response to the current economic climate The European Central Bank steers monetary policy in the euro area. Over the past few years, it has dropped interest rates, which are now below zero. The consequence of this unprecedented situation? Classic savings accounts no

43.7 billion 1.1 billion assets under management as of 31/12/2020

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assets under management with BIL Invest

ESG 4 sub-funds in the BIL Invest range apply an ESG approach

longer pay. Clients looking to increase their savings must turn towards investment solutions which offer a higher potential annual return, but are riskier and need to be mobilised for longer.

Developing a complete range of investment products Every client is unique. As such, BIL’s advisors will provide solutions adapted to an individual’s income, goals, investment horizon and investor profile.

Along with structured products with varying degrees of capital guarantee, BIL offers a diverse investment solution called BIL Invest. Managed mainly by the Bank’s experts, the different subfunds provide access to stock markets and bonds, each with different risk profiles and return prospects. They are easily accessible from a low investment amount and adapted to all investor profiles, from beginners to seasoned investors alike. The Bank’s experts also work with more sophisticated funds, namely Private Equity or Real Estate alternative investments. Reserved for experienced investors, these potentially offer much higher returns. Finally, thanks to the Bank’s open architecture approach, clients have access to funds carefully selected by our experts and managed by other companies.

Alongside these products, the Bank offers investment support to help customers save at their own pace. With Flexicav, monthly investments start from as little as 25 euros. Meanwhile, advisory and discretionary management services are available for customers looking for increased monitoring. The key is to offer services adapted to the individual, thanks to BIL’s support and expertise.

Invest meaningfully For clients wanting to invest sustainably and responsibly, the Bank also offers investments that apply ESG (Environmental, Social and Governance) factors. We’re looking to expand this offer in the future.

This desire to have an impact and make meaningful investments can also be found in the Bank’s range of alternative investments, such as Private Equity funds. With this type of product, investors can invest in the “real” economy, in businesses that will drive tomorrow’s economy, rather than simply purchasing company shares listed on the stock exchange. Again, for a bank like BIL, our strength lies in our ability to adapt and offer products suitable for all investor types.

Investing To diversify and increase your assets

Planning for the future To prepare for your future and your retirement To prepare for your children’s future and finance their education To prepare for your family’s future in case of unexpected passing

Saving In case of unexpected emergencies To put down a deposit on a property purchase For life’s everyday pleasures

Th eB IL W ay 21

g n i t s e v of In

Goalbased investing BIL is expanding its range of investment services and products and offers solutions adapted to all types of investor profiles, explains Lionel De Broux, Head of Fund Selection at BIL.

What should you consider before investing?

The first thing to think about is your investment horizon and projects. My advice is simple: invest with a long-term strategy and only invest part of your wealth which you won’t need in the immediate future…

Instead of placing it all on a quick “lucky strike”, I recommend considering a precise, well-planned strategy. You need to define the investor profile and the investment approach and objectives, as well as establish the level of risk you’re willing to take. There are many different investment products and securities out there, but portfolio diversification is essential – you mustn’t put all your eggs in one basket.

Our advisors are on hand to help clients define these different points and offer them the most suitable services and products. Investors who know exactly what they want can also use the Bank’s services independently. On the other end of the scale, investors can take advantage of our advice and propositions, or decide to fully delegate their portfolio management via a discretionary management mandate.

What products does BIL offer?

Our range of investment funds was redesigned three years ago to keep up with the changing investment landscape. Our investment solution, BIL Invest, now covers a variety of asset types

and financial markets. First of all, we offer different turnkey sub-funds suited to different risk profiles, from the most prudent to the most dynamic. We also have themed sub-funds which focus on a specific region or asset class.

Clients can also build a portfolio by themselves – or with the help of an advisor, if they so wish.

Our experience and performance over the past three years are a quality assurance for our customers. Let’s not forget that these products are “made in Luxembourg”. These are Luxembourg funds whose management company, custodian bank and managers are in the Grand Duchy.

And what about clients who want even more personalisation?

We also offer an open architecture approach with our discretionary management and advisory management services. On top of our BIL Invest solution, we offer products and funds carefully selected by our experts and managed by other companies, giving clients access to a wider range of themes and different market trends. Our advisors are there to help mix and match these products effectively.

To sum up, for any investment approach, ideally you would build a diversified portfolio and solid investment base from BIL Invest, and complete it with more specific products.

“ Our range of investment funds was redesigned three years ago. Our experience and performance are a quality assurance for our customers.”

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A rising tide of alternative funds

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More and more clients are looking for new investment opportunities.

Louis Macalli and Florent Saint-Quentin, responsible for BIL’s range of alternative investments, explain to us why.

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lternative funds are all the rage. As classic investments no longer offer the desired returns, wealthy clients have discovered new, interesting ways of diversifying, that are less prone to usual market volatility. “With negative rate interest and declining returns on the majority of equity-based, guaranteed and non-guaranteed financial instruments, wealthy clients are developing a new appetite for alternative products like Private Equity, Real Estate or even Private Debt,” observes Louis Macalli, Head of International Coordination and Alternative Solutions. “It’s not uncommon for these assets to offer recurring returns of more than 10%, with the advantage of being uncorrelated to the stock market or other listed products.” What’s more, with alternative investments you invest directly in the economy, whether it’s on real estate projects or on up-and-coming businesses. “On one hand, heavily indebted governments are transferring this role of supporting businesses onto the individual. On the other, private investors increasingly appreciate being able to make an impact and help other entrepreneurs create value, by moving away from the basic buy-and-sell logic of securities,” explains Florent Saint-Quentin, Head of Alternative and Innovative Solutions.

Therefore, they’re aimed at wealthy clients, business owners and investors who all have the solid understanding required for placing some of their money in such solutions. “These alternative funds present a certain illiquidity. The investment horizon is between five to ten years, and you have to be aware that there’s always a risk,” adds Louis Macalli.

BIL is now exploring new avenues in order to expand its alternative suite. A second Private Equity fund with Legend Capital is being considered. “China is a market full of promise with a much more important expected growth than in Europe. We’re therefore considering a new, more diversified and international range,” reveals Florent Saint-Quentin. “Our goal is to scale up by capitalising on the experience gained since 2018 and, for this particular fund, take the role of Asset Manager,” concludes Louis Macalli, who sees alternative investments as a major topic in the years to come.

Premium partners With this in mind, in 2018, BIL made the decision to innovate and develop quality products to meet this new demand. “It was about getting a foot on the ladder,” continues Louis Macalli.

“We developed the expertise required for these types of products, and the arrival of our new shareholder, Legend Holdings, was a gamechanger.” Thanks to a partnership with Legend Capital, a major Private Equity player on the Chinese market, BIL launched its first alternative investment fund: BIL Private Equity I (or BIL PE I), a fund of funds. It promises shareholders longterm capital gains thanks to diversified investments in three funds managed by Legend Capital. The funds respectively target their investments in Chinese companies in the tech, media, telecommunications, healthcare, and semiconductor industries.

After this initial experience, in 2019 the Bank launched the BIL Real Estate I fund, this time in partnership with another highly reputable name, Quilvest Capital Partners. “In both instances, we looked for the best partner possible, combining expertise with a solid track record and that entrepreneurial flair which resonates with our clientele, especially with business owners and family offices,” explains Florent Saint-Quentin.

14%

+

targeted internal rate of return for BIL PE I

10%

+

targeted internal rate of return for BIL RE I

New products in the pipeline Entry tickets for these funds is 125,000 euros.

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Trust and interpersonal skills are key To meet changing customer expectations, the private banker puts interpersonal skills and trust at the heart of what they do, explains Catherine Croisier, Senior Relationship Manager Private Banking at BIL.

What are the biggest trends in the private banking sector?

Over the past few years, customers have become more sophisticated, more demanding.

They’re more international too. Their assets or family are based in different countries, and if they are business owners, their activity may also be based in another country. To comprehend this change, you need a very good understanding and overall awareness of each client’s individual assets and personal situation.

Demands are also changing. We often deal with entrepreneurs whose capital isn’t necessarily very liquid. In this instance, credit becomes particularly important. We’re here to provide made-to-measure solutions, be it to finance the purchase of a second home or develop a more specific project, to grant a traditional loan or support a financial investment. As well as discretionary portfolio management and advisory services, we have expanded our suite to include more sophisticated products. And finally, in response to regulatory framework changes, we must be more informative, to ensure our clients are adequately updated.

What impact does this have on the private banker’s role?

Our job involves client contact, and so interper-

sonal skills and trust are essential. We touch upon certain private aspects of our clients’ lives.

The advisor is at the heart of this personal relationship and is the point of contact between the customer and the bank. We’re also surrounded by a team of credit, structuring and wealth management experts. We’re facing wealthy families with very specific needs. As such, they need tailor-made solutions. No two cases are the same.

It’s up to us to implement the right resources to understand the client and meet their needs.

Can you describe your typical client profile?

We have a lot of entrepreneurs, a younger, more dynamic clientele who are often rather impatient. As a general bank, we can assist them with both their personal and professional projects.

Another positive aspect is that the Bank’s decision-making centre is Luxembourg. This enables us to obtain decisions very quickly.

Plus, we can help some of them expand in China, thanks to our Chinese shareholder’s support and network. We’re currently looking at what diversification opportunities the country could offer in terms of investments. Our drive is to continue expanding our suite of investment products, especially in responsible investment.

“ Our clients are increasingly sophisticated and demanding, requiring a global understanding of their world.”

26

Business partner and Covid crisis ally

Since its creation, BIL has played a key role in financing the national economy and businesses based in the Grand Duchy.

28

T

his still rings true today: BIL is the partner of choice for all the men, women and entrepreneurs driving the local economy forward. The bank’s experts assist them with their day-to-day operations and future business goals.

From SMEs and major groups to start-ups, public bodies and financial institutions, BIL offers integrated services: traditional loans and structures, private debt, cash management, budget optimisation and leasing solutions.

BIL also helps entrepreneurs at every stage of the business life-cycle, from creating to selling a business.

1 billion the total amount of Covid moratoria at the height of the crisis in June 2020. To date, the majority of receiving clients were able to resume the normal course of their contractual payments.

2,800 Covid moratoria on business loans were granted during the crisis.

By businesses’ side during the crisis Businesses of all sizes and from all sectors saw their activity partially or totally disrupted by the health crisis.

For these business owners, BIL implemented special support to help them get through this difficult period and get their businesses growing again on healthy foundations. SMEs and start-ups don’t have the same cash flow as big groups, and so faced a serious risk of bankruptcy. The bank’s advisors contacted them immediately to assess the impact of the crisis on their activity and offer solutions adapted to their situation.

BIL decided to offer financial support to its business clients vulnerable to cash flow problems resulting from the crisis. The bank drafted an agreement with the ABBL (the Luxembourg’s Bankers’ Association) providing for a moratorium on business loans granted to Luxembourg companies before 18 March 2020, for a maximum of six months. BIL also worked with the Luxembourg government to launch a state-guaranteed loans system, to provide additional support to those driving the country’s economy.

The national economic fabric is solid and has shown great resilience. The total amount of moratoria granted reached one billion euros at the height of the crisis in June. To date, almost all clients who received a moratorium were able to resume the normal course of their contractual payments.

BIL partnering innovative businesses Innovation isn’t decreed, it’s created.

BIL remains loyal to entrepreneurs and has been supporting innovative Luxembourg start-ups and businesses for many years now.

The bank is partner to Technoport, Innohub and Paul Wurth InCub, the country’s leading incubators. Selected start-ups supported by the bank receive six-months free access to office space at The Office City co-working space.

The BIL Start programme provides business creators with access to different financing programmes, such as InnovFin. In 2015, BIL was the first bank in Luxembourg to have signed an agreement with the European Investment Fund to offer InnovFin loans to innovative Luxembourg SMEs. In five years, the bank has granted more than 90 loans with the InnovFin guarantee for a total of 68.2 million euros.

BIL is also the only bank stakeholder in the Digital Tech Fund launched in 2016 by the Ministry of the Economy.

95 InnovFin loans were granted between 2015 and 2020 to innovative Luxembourg businesses, for a total of 68.2 million euros.

29

Responsive to SMEs’ needs BIL helps smalland medium-sized businesses in various sectors grow.

Chantal Conter, Senior Corporate Advisor at BIL, explains how.

What does your job entail?

Our job is made up of various tasks. First of all, we offer our customers a wide range of services to help them optimise their day-to-day operations. For example, our online banking platform, debit cards, cash flow management and European direct debits.

We also help our clients develop their mediumand long-term business goals. We provide advice when it comes to financing a project, such as buying or building a new production site, purchasing new machinery or providing cash flow support. We’re always listening to our customers to help them find the most suitable financing solution, be it an investment loan, a leasing solution or a bank guarantee, amongst others.

Depending on the project, the Bank’s different services are on hand to help, from BIL’s branch network, BIL Lease, our colleagues at private banking or even legal and admin services.

All of BIL’s expert teams are working hard to meet customers’ needs.

How do you respond to this type of business’s specific needs?

Small- and medium-sized businesses are often family businesses. They enlist our experience to help them assess their financial needs and make investment decisions.

You need an excellent understanding of their business and how it operates. We prefer to meet

and discuss with the business owners, to guide them towards the product or banking service most suitable for their project. It goes without saying, direct contact still remains limited due to the health crisis.

These businesses were hit hard by the health crisis. How did you help them?

Our initial reaction was to contact our clients to take stock of the situation and see how the crisis had impacted them. Situations varied between businesses, from those who were unaffected and could continue commercial activity to those who had to stop fully or partially, such was the case for the hospitality industry.

We did everything in our power to help them through this difficult period. Under the coordination of the ABBL, we decided to provide financial support, in the form of a moratorium on loans granted to Luxembourg companies experiencing cash flow problems related to the crisis.

Furthermore, we continued our role in financing the economy by working with the Luxembourg Government to launch a state-guaranteed loans system, as well as measures implemented

by Société Nationale de Crédit et d’Investissement, the Mutualité des PME mutual guarantee scheme, the Mutualité de Cautionnement and the Office du Ducroire (the Luxembourg export credit agency).

“ It’s incredibly rewarding helping SMEs with their daily operations and developing their future business goals.”

30

From top to bottom:

Frédéric Cassani (F.C.)

Sascha Wullschleger (S.W.)

Rémy Savoya (R.S.)

Head of Structured Finance & Syndication BIL Luxembourg

Head of Wealth Management BIL Suisse - Lugano

Head of Corporate and Institutional Banking BIL Suisse - Geneva

Offering innovative financing solutions BIL looks beyond conventional loans by offering innovative financing solutions for businesses looking to purchase new equipment or develop a new project.

Just take the launch of GoldenPeaks Capital’s green bond…

Who are your clients and why do they choose BIL? F.C.: Our clients are mainly small- and medium-sized companies, entrepreneurs, and private investors who want to carry out strategic acquisitions, finance their growth, perform business transfers or optimise their professional assets. Clients come to us because we offer a unique range of financing solutions that meet their domestic and international needs. This includes structured financing solutions such as arrangement, syndication and agency services, among others.

What does the Structured Finance and Syndication (SFS) team at BIL do?

F.C.: We advise corporate clients and entrepreneurs on debt transactions. Over the past four years, we have leveraged our expertise to advise, participate and lead more than 60 transactions.

We are also working closely with Rémy at BIL Suisse to develop the advisory side of the business in Luxembourg and build a corporate finance offering for the wider BIL Group.

Can you tell us more about this new corporate finance offering?

R.S.: We are developing a new Corporate and Institutional Banking (CIB) team in Switzerland to service international clients. The international CIB team will offer clients three core services.

The first focuses on structured finance where the Bank lends to small- and medium-sized businesses. This is an extension of what the Bank does in Luxembourg. The second core service

is an advisory practice for debt and equity raising as well as merger and acquisition. The third is to act as an advisor and arranger for private debt issues.

Can you give us an example of how a client can benefit from this new approach?

R.S.: We recently structured and arranged a green bond issue of 20 million euros for GoldenPeaks Capital through a dedicated securitisation vehicle in Luxembourg. This client invests in renewable energy and wanted to raise fresh capital. We proposed issuing a bond which we syndicated to a small number of qualified investors who are clients of the Bank.

How did the relationship with this client begin?

S.W.: The founder of GoldenPeaks Capital approached us for a personal mortgage to finance a summer home. This grew into a private banking relationship. During our various discussions, we talked about his company and a new business venture in Poland which required financing. Our private and corporate banking expertise enables us to provide our business clients with global services.

What is BIL’s value proposition for entrepreneurs?

S.W.: One of BIL’s strengths is that it is large enough to offer global services for both personal and professional needs, but still small enough to develop trusting, interpersonal relationships with clients.

33

A committed, modern bank

Building the BIL of tomorrow Sustainable development goals Solutions over products Designed by BIL Increasing staff mobility Accelerating change in the workplace BIL’s active role in society

36 38 40 42 44 46 48

Building the BIL is adapting and transforming to tackle the challenges faced by the banking sector, outlining its major objectives for tomorrow in its Create Together 2025 strategy.

Since 2008, regulations governing financial institutions have tightened considerably. Clients and investors have called for increased transparency and protection.

All banks are affected, and as a systemically important financial institution, BIL has had to adapt the way it operates as well as its offering. The international banking landscape has changed considerably too.

Increased market volatility reduced the attractiveness of certain investment products, and the European Central Bank’s negative interest rate policy led to the following fact: classic savings no longer pay. As digital tools have become the norm, consumer behaviour has changed, with clients wanting fast, flexible and practical solutions. Traditional banks must keep up with these changes and adapt their infrastructure and services accordingly. BIL has made this new environment their own, and will continue to offer clients real added value with its services and products.

For all these reasons, the Bank’s Create Together 2025 strategy gives a clear direction and lays the foundations for the BIL of tomorrow: a bank that’s ready to rise to the challenge, looking to the future with optimism.

36

BIL of tomorrow More human, more digital

Value chains transformed

BIL is an independent bank deeply rooted in Luxembourg’s history. Reputed for its expertise, its advisors are at the heart of its business. Thanks to its multi-lingual teams, risk appetite framework and ability to act on a local and cross-border level, the Bank is in the position to provide services well beyond Luxembourg’s borders. The ability to combine reliable, standard services with high quality advice will be essential for solidifying the Bank’s reputation as an investment advisor. BIL is entrepreneurs’ partner of choice, offering different value-creating services that meet both their business and wealth management needs.

BIL’s two main private banking hubs are in Luxembourg and Switzerland. BIL will continue to develop this activity internationally, especially in the Chinese market with the support of its shareholder, Legend Holdings. This growth will be in accordance with the bank’s risk management framework and backed with innovative digital services to meet more digitally-aware clients.

BIL is currently leading a major transformation project on its Core Banking System, that is, the software system which powers all the Bank’s services. This new IT system will be delivered in 2022, improving the Bank’s quality and speed of service in all areas.

A new way of working The banking sector evolves in a complex environment. With all the ongoing transformations, it’s the perfect opportunity to revise current procedures to achieve greater efficiency.

Innovation will be key for success, as it will give both clients and staff accessibility, centralisation and consistency in everything that the Bank does and creates. The Bank’s values “Create, Collaborate and Care” will continue to guide employees, helping them achieve its strategic goals.

37

Sustainable development goals

38

In its commitment to sustainable development, BIL is asserting its position as a responsible bank through various initiatives.

Alessandra Simonelli, Head of Sustainable Development at BIL, tells us all about them.

T

hese days, being a responsible bank means having a positive impact on both the environment and the society. As a financial intermediary, the bank can offer clients sustainable investment products and services. It must also deliver its services responsibly, for example, by ensuring that its governance and infrastructures are in line with a sustainable approach. It’s also about being aware of one’s responsibility as an employer and ensuring staff well-being and development. “The aim is to act ethically with all stakeholders,” reveals Alessandra Simonelli.

This manifold commitment is today encompassed by what is called ESG criteria, or Environmental, Social and Governance.

BIL is fully aware that it has a role to play in fostering balanced economic growth and creating an inclusive, circular economy. The financial approach which governs how companies operate must be balanced and also takes certain non-financial elements into consideration over the long term.

“This global awareness resonates with our clients. Today, almost everybody is thinking about how they consume and how they can improve,” observes the Head of Sustainable Development.

And this also applies to how we invest our money. “In this ever-changing world of climate, health and financial crises, investors are looking for meaning, and BIL is stepping up and moving in this direction,” maintains Alessandra Simonelli.

The Bank has a range of diversified Patrimonial funds which adhere to an SRI (Socially Responsible Investing) strategy, thus contributing to sustainable development. BIL also offers loans to help businesses make the transition to renewable energy sources. For personal customers, loans with favourable financing conditions are available for purchasing electric or hybrid vehicles. “We want to encourage clients to consume more responsibly,” Alessandra Simonelli explains before adding: “We have a role to play in financial education amongst the population, by explaining how money invested can have a greater, more positive impact.” In fact, the Bank launched the website my-life.lu several years ago to present this issue to a wider audience.

BIL also contributes to the local economy by financing and supporting businesses, as well as getting involved in local educational, healthcare and cultural projects - even more so since the start of the ongoing health crisis.

So what are BIL’s short-term objectives? To ensure that these criteria are fully integrated into the Bank’s strategy in the near future. To measure and communicate its impact in its non-financial information report.

While the banking sector’s image has been tarnished by previous financial crises, banks today are part of the solution, not the problem.

“BIL’s commitment is the start of a transformation process which will only accelerate, to create a genuine ESG culture in line with stakeholders’ expectations,” concludes Alessandra Simonelli.

+1 billion the total amount of Covid moratoria on business loans at the height of the crisis in June 2020.

+31% the percentage increase of the number of BIL employees who took part in a training session in 2020.

Most training sessions aimed to help staff during the crisis, to find the right work balance at home and manage professional relationships remotely.

39

Solutions over products Rather than creating new products, the Bank wants to exceed customer expectations and make their lives easier by offering new solutions.

Aurélie Chardon, Head of Product Management at BIL, explains all.

What is the starting point for launching a new product?

The starting point is the client and their needs.

Our mission is simply to make their lives easier.

From there, the Product Management team’s objective doesn’t stop at simply creating new financial services or products. Our role is to think about how we can offer a better customer experience to match their profile. It’s an ongoing improvement process. We must constantly question ourselves, identify the obstacles and improve the process, taking into consideration the client’s reality rather than the bank’s universe.

Can you give us a recent example?

For a client, buying a house or a flat doesn’t simply boil down to a loan. It’s important to imagine what this truly represents for them and understand the different stages they’re going through… Does the client simply want to know their borrowing capacity? Have they already found a property? First of all, we completely revised our mortgage calculator. It’s important to note that in a tight property market, reactivity is essential. As such, we halved our decision-making period on mortgage applications to help clients position themselves faster on properties.

Concerning innovation in payments, a year ago we introduced Apple Pay and we were the first to offer instant payments in Luxembourg.

Once again, the aim was to make the payment process easier, faster and hassle-free. We also completely revised our range of credit cards. We took the opportunity to overhaul assistance and coverage, making them more straight-forward.

The launch of this new range was paired with real-time expense report notification features and managing expense limits via the Bank’s BILnet app.

Have social distancing and the health crisis changed customer behaviour in terms of the Bank’s services and products?

The health crisis clearly played a role in accelerating the change in both personal and business clients’ needs and expectations. We have done our upmost to adapt as fast as possible to this new situation. We supported Luxembourg businesses by giving them flexibility in terms of financing, while proposing new types of state-guaranteed loans. For the majority of our contracts, we also included the possibility to sign electronically, which reduces the need for clients to visit their local branch.

Our objective is to always improve the customer experience through our services. For example, we’re finalising the development of a calculator which will allow users to better understand tax effects on their financial projects. For day-to-day banking operations, we’re going to expand our online banking platform and we’re currently reviewing our packages to offer more bespoke solutions. We’ll also continue developing our offering around key actions, such as opening an account or purchasing a property.

Finally, we understand that more and more of our clients want to invest responsibly, and we’re going to expand our range of investment products in this area.

“ Our mission is very simple: to make our clients’ lives easier.”

40

Designed

by BIL BIL’s effective, user-friendly services have won over clients.

But how were they made? Aurélien Mellé, UX Manager at BIL, reveals all.

Why is it important to improve product and service design?

It can often be difficult for our clients to understand the banking world and its services and products. Whether these services have a computer architecture – such as internet or mobile services, or a physical one – like our branch organisation, their design and application must be user-friendly. Our products and services are designed to be easy, efficient, and enjoyable to use, as well as ensuring the best user experience possible. This is what we call UX (User eXperience).

UX must have that balance between practicality and aesthetics. Let’s take the example of blocking a lost debit card. It’s understandably a stressful situation for a client to be in. So at BIL, we’ve introduced a simple solution enabling clients to lock their card via the BILnet app. The service may seem simple, but it was difficult to implement and customer access required brainstorming. You need to be able to access this feature fast and easily when faced with that emergency situation, however as it’s not a frequent occurrence, this feature shouldn’t be intrusive.

How do you go about designing services?

The user is the starting point, their opinions

and comments. We ask them questions, listen to them and gather their feedback. Social media, as well as app stores where BILnet is available, are also a valuable source for user feedback. Users are always willing to express their level of satisfaction in detail. And finally, our customers often share their feedback with their relationship manager, which we also take into account.

I’d like to point out that before we launch a service, we offer clients the opportunity to take part in the testing phase if they wish, to make sure it fully meets their expectations.

What new developments can we expect in the future in terms of user experience?

It’s hard to give one clear answer as customer needs and applications vary a lot from country to country. One thing is certain, their expectations condition the choices we make on specific criteria, such as security, instantaneity, efficiency and personalisation. These four factors will remain the basis for future developments.

Finally, I would say that thanks to open banking, services from partner companies can be linked to BIL’s online banking platform. This is a major trend that’s only going to gain in popularity in the future.

“ Our products and services are designed to be easy, efficient, and enjoyable to use, as well as ensuring the best user experience possible.”

42

Increasing staff mobility In 2019, BIL launched a pilot scheme enabling certain staff to work remotely. The health crisis has since accelerated this trend on a large scale. We meet with Olivier Kormann, Head of People Care, Benefits and Solutions at BIL, to find out more.

B

IL’s work environment has changed vastly over the past few years. In 2019, the bank launched its Mobile Working scheme (its name is a reference to home working), which aimed to increase staff mobility globally. “This initiative responded to employees’ call for more flexibility, to have the opportunity to work from several different places, be it the office, at home or with clients,” details Olivier Kormann.

A technological tool approved by Luxembourg’s financial supervisory authority, was designed for this purpose. In order to decentralise banking activity from outside the usual company offices, the company is required to implement a special technical framework to ensure security and confidentiality.

The scheme was positively received with quasi-unanimous support, with employees experiencing greater convenience in their daily working life. Employees spend less time commuting and have a better work-life balance. And

finally, it enables staff to maintain close client relationships and has a positive impact on the quality of service at the bank. This trend is only set to grow in the future.

A demonstration of resilience When the health crisis kicked off in March 2020, the Bank had to implement the initiative more quickly, expanding it across more employees.

Thanks to the IT teams’ tireless efforts, in the space of a few weeks, BIL had rolled out its teleworking tool across as many members of staff as possible while remaining fully operational.

“The Bank and its employees demonstrated tremendous resilience during this period, with no impact on performance during this rather unsettling time.”

The Bank wants to use teleworking to promote another way of working. Managers require new skills, such as managing a team remotely.

Employees are more independent when working from home, and so managers need to

“ BIL is fully operational with all staff working remotely.”

44

ensure team members are working in the right direction and have access to the right tools to achieve their objectives. Managers must be mindful that everyone has access to comfortable working conditions, keep in contact regularly and be ready to help whatever their personal situation and individual needs.

“We’ve all learnt a lot from this lengthy crisis and resulting change in organisation. Communication with staff is key, whether it is at bank level or team level,” explains Olivier Kormann before adding, “That’s why the Bank is working on launching a new communication platform.” Indeed, new collaboration tools are in the pipeline to enhance remote project management.

At the same time, the offices have been reorganised, creating more modern workspaces that optimise dialogue – while respecting social distancing measures, of course. Because of the health crisis and the increase in teleworking, the Bank has also introduced a dynamic, smart car parking system at its headquarters. It enabled employees to come to work by car during the crisis, the aim being to reduce the risk of worker exposure.

As the end of the pandemic is looking in sight, the Bank is thinking about the future working environment for its staff in the post-Covid world.

45

Accelerating change in the workplace The pandemic has forced businesses to adapt to a new work environment and altered perceptions toward organisational change, according to Ruth Kremer, Head of Bank Project Portfolio Management at Banque Internationale à Luxembourg.

Modern communication tools are changing the way companies communicate with their clients and sell their services.

How have you coped with these changes during the pandemic?

The pandemic forced many companies to adapt to a new way of working. BIL is not immune. The abrupt switch to teleworking in early 2020 highlighted the importance of modern communication tools across all aspects of the business. For example, before the pandemic struck last year, I was recruiting people to join my team. Thanks to tools like Webex, we were able to continue this process unimpeded by carrying out interviews and assessments online. Instant messaging apps have also helped colleagues coordinate their work and stay in close contact.

But embracing technology is not always a smooth process. Teleworking was not something new to me. But for many colleagues, being away from the office was a big change.

Contrary to popular belief, being young does not necessarily make you more amenable to teleworking. Succeeding in this new work environment is a question of mindset, not age.

Will an increase in modern communication tools lead to broader organisational changes?

The pandemic has accelerated some largescale changes that were already underway

before the crisis. For example, in 2019, we started a pilot that would allow 100 people to work remotely, with the intention of eventually rolling it out globally. Confronted with the new reality, we were able to break down barriers and find new solutions to give everyone the opportunity to work from home. It has also changed people’s perceptions toward change and demonstrated that anything is possible with a can-do attitude.

The pandemic has forced us to become more agile and future-proof. Adopting technology is not a process that begins and ends. It is a continuous adjustment. When we see things don’t work, we need to change them or modify them. This concept of continuous improvement is relatively new in today’s business world.

How have you personally adapted to the new situation?

Since we switched to teleworking, I have been using my time more efficiently. The time I usually spend commuting to work is now time spent working on projects. I also feel more autonomous. For example, when I am in the office, I meet my team and interact with colleagues. But when I need somewhere quiet to strategise or prepare presentations, I can do this in a more conducive environment at home. This flexibility makes me more effective and happier.

“ The pandemic has accelerated some large-scale changes that were already underway before the crisis.”

46

BIL’s active role in society

48

BIL’s Corporate Social Responsibility commitment and sponsorship activities is put into practice through sustainable partnerships and support for many local and national initiatives.

The Bank is active in four areas: innovation, arts and culture, education, and healthcare.

70 kg Healthcare BIL supports NGOs working tirelessly to improve the lives of others and bring them comfort. The Bank actively supports Médecins du Monde in its mission to help the most vulnerable by providing medical care in both Luxembourg and around the world. This involves organising medicine and healthcare product collections, taking part in charity concerts, and donating equipment. For the past five years, BIL has hosted the annual Art2Cure exhibition at its art gallery, the Galerie Indépendance. Proceeds from sales of artwork on display help finance research programmes for diseases such as Parkinson’s disease and Zellweger syndrome. BIL also actively supports Fondation Cancer. In a powerful show of solidarity, our employees take part in the annual “Relais pour la vie” event in which money raised goes towards research and support for cancer patients.

of medicine and healthcare products collected for Médecins du Monde.

250 boxes of medical supplies distributed to hospitals in the Grand Duchy of Luxembourg at the beginning of the health crisis.

Art and Culture

Education

Innovation

Supporting and promoting artistic creation is a way for the Bank to stay engaged in Luxembourg’s social and cultural life. Art and culture are synonymous with freedom, expression, exploration and renewal. BIL has its own art gallery called Galerie Indépendance, and every year it hosts temporary exhibitions showcasing Luxembourg artists.

The Fondation Indépendance, a foundation established in 1999, aims to promote contemporary culture and art through its various forms of expression. BIL is also the main sponsor of den Atelier, a contemporary music venue promoting music and the local and international arts scene.

BIL is committed to education and knowledge sharing. The Bank is one of the main sponsors of Jonk Entrepreneuren, an initiative which aims to foster entrepreneurial spirit among young people. The Bank also sponsors Lëtzebuerger Guiden a Scouten, the biggest youth organisation in Luxembourg.

Launched in 2017, myLIFE is a platform designed to provide the public with clear, relevant information about financial management. The Bank continues to partner the DayCARE initiative, coordinated by the NGO CARE and under the patronage of the Ministry of Education, Children and Youth and the Ministry of Labour.

And finally, every year employees take part in Woch vun de Suen, an initiative which aims to teach children of the 4th cycle of primary education in Luxembourg the basic rules of responsible money management.

Innovation is about constantly striving to go beyond existing limits – and it’s one of BIL’s core values.

The Bank’s dedicated Innovation team have developed a complete range of services for businesses.

The Bank has teamed up with major local names, especially incubators that support start-ups and the local economy. BIL is a partner of Technoport and Paul Wurth InCub, and even has its own office space within The Office City that can host up to three start-ups for a six-month period. And finally, the Bank regularly organises conferences and events promoting fintech start-ups.

49

BIL

in a few numbers, in a few words

Founded in

1856 Present in Luxembourg, Switzerland, Denmark and China.

1

st

independent bank in Luxembourg

Universal bank, retail banking, private banking and wealth management, corporate and institutional banking.

2,055

45

employees, of which 1,810 for BIL Luxembourg S.A*

3

rd

in terms of market share

nationalities*

Since 2018, 89.94% of ownership held by Legend Holdings and 9.99% by the Grand Duchy of Luxembourg.

43.7

101

billion euros* in assets under management

19.8

billion euros* in customer deposits

million euros net profit after tax*

15.4

billion euros* in customer loans granted

*

as

of

31 D

ec

em

be

r 20

20

Lift to discover BIL’s services in Luxembourg

Global presence Based in Luxembourg, BIL Group has dedicated wealth management offices in Switzerland, Denmark and China.

With over 2,000 employees and thanks to its international network, BIL Group offers bespoke and innovative financial services.

Denmark

Private banking and wealth management

Luxembourg

Retail, private, corporate and institutional banking, as well as treasury and financial market services

Family office

Alternative investment fund management

Leasing solutions

Investment fund management and wealth structuring solutions

China

Representative office in Beijing

Wealth management and asset management in Hong Kong

Switzerland

Private banking in Zurich, Geneva and Lugano.

Wealth management and business development support.

Nationwide Founded in 1856, BIL is the oldest multi-business bank in Luxembourg.

Since its foundation, the bank has always played an active role in financing Luxembourg’s economy.

With a nationwide presence, our advisors are attentive to both our personal and business clients’ needs.

Clerva

Wiltz

BIL Office BIL Shop BIL House Distributeur

Differdange Esch-sur-Alzette

aux

BILnet BIL’s online banking platform.

For managing accounts in a user-friendly, ultra-secure environment and carrying out transactions remotely and in real time on the device of your choice.

BIL Direct Centre

Diekirch

Contact our teams by phone +(352) 4590-5000 or secure messaging, Monday to Friday from 8.30 a.m. - 6 p.m.

Echternach

Mersch Junglinster

Luxembourg

Discover all our services at www.bil.com Contact us at (+352) 4590-5000 Banque Internationale à Luxembourg SA 69 route d’Esch L-2953 Luxembourg