Updated July 28, 2023
Overview of Top Banks in Luxembourg
In the Luxembourg economy, the Financial Services industry in the banking sector plays a key role. The financial industry in Luxembourg contributes 27% of the total GDP. Banks in Luxembourg are world leaders in financial services and offer services like investment, multi-currency accounts, Offshore banking, Private Banking, and asset management. Even though Luxembourg is small, there are around 150 banks in Luxembourg, and 30% of them are international Banks. In Luxembourg, a foreigner has no restrictions from owning a bank account. Therefore both residence and non-residence can open bank accounts and invest in Luxembourg.
Luxembourg is one of the leading wealth management centers in the Euro area, and it is the world’s second investment fund center after the United States and Europe’s first, with around 4,187 billion Euros in assets under management at the end of January 2017. Luxembourg draws on its political, economic, and regulatory stability to foster a strong culture of investor protection, and it’s rated AAA by rating agencies. Commission de Surveillance du Secteur Financier (CSSF) is responsible for Financial Regulation in Luxembourg and the supervision of financial sectors in the country. Luxembourg Central Bank (BCL) is the Central Bank of Luxembourg’s mission is to define and implement European monetary policy.
Top 10 Banks Luxembourg
Here is a list of the top 10 Banks in Luxembourg and know them in detail:
1. Societe General Bank and Trust
It is one of Europe’s leading financial services groups, founded in 1893, and the oldest foreign banking institution in the Grand Duchy. The group offers services to business customers, institutional investors, and High Net worthy individuals (private banking) through its highly active trading room services: Private Banking, Wealth Planning, Securities Services, Custody, Trustee Services, Corporate Services, Cash Management, etc. At the end of December 2017, net banking income was 553 Million Euros; total assets were 41 billion Euros with 3 billion Shareholders’ Equity.
2. BGL BNP Paribas S.A.
BNP Paribas group has established itself as one of the leading banks in the financial markets in Luxembourg. Groups provide services to Individual, professional and individual clients, and Private Banking, and it provides services like retail banking, wealth management, corporate and investment banking, current accounts, payment cards, remote banking services, etc. At the end of June 2018, net banking income was EUR 693.1 Million, up 6%. At the end of 2017, BNP Paribas Group employed around 3,700 people in Luxembourg; 2,379 were at BGL BNP Paribas. In 2018 the international magazine Euromoney named BGL BNP Paribas Best Bank In Luxembourg.
3. Deutsche Bank Luxembourg S.A.
Deutsche Bank Luxembourg S.A. was founded in 1970 and was the first foreign subsidiary established by Deutsche Bank AG. Today it is one of the leading financial service providers in Luxembourg. Banks’ activities include corporate and investment finance, private assets management (Wealth Management), investors and issuer services, international loans, and agency services. Total assets with the Bank were 37,676.00 Million euros in 2017, and annual profit was 218.00 Million Euros. The total employee working in the Bank was 340 in 2017.
4. Banque ET Caisse D’epargne DE L’etat (BCEE)
It was founded in 1856, and it provides Financial and banking products and services to private customers, Small and medium enterprises, self-employed professionals, and institutional customers. The Bank offers savings and investment products, Digital and personalized investment plans, various funds, equities, bonds, etc. A bank employed around 1,872 employees. In 2017 total assets with the Bank were 45,518.00 Million euros, and the annual profit was 241.00 Million Euros. Bank has assigned with high-grade long-term credit rating by credit rating agency Moody’s. The Bank is state-owned, and its sole shareholders are the state of Luxembourg.
5. Banque de Luxembourg S.A.
It is a financial institution in Luxembourg founded in 1920 and one of the leading private banks in Luxembourg. The Bank supports individuals, families and individuals and entrepreneurs in Structuring, managing, and handing over their wealth. Bank offers services through five areas private banking, credit services, services for businesses and entrepreneurs, assets management, and professional banking. Bank reported a net income of 247 Million euros and a net profit of 63 Million Euros in 2017, and Equity capital was 986 Million euros. A bank employed around 900 people in Luxembourg.
6. Banque Internationale a Luxembourg
It was founded in 1856 and is one of Grand Duchy’s oldest private banking groups. It plays a key role in developing the local economy and operates in retail, corporate, and private banking. BIL groups employ more than 2,000 people around the world. Total assets with the group in 2017 were 23,753.00 Million euros, and the annual profit was 117.00 Million euros. A good credit quality rating was assigned to the Bank for long-term credit by the credit rating agency Fitch and by Moody’s as an upper-medium grade that is A3.
7. UniCredit Luxembourg
UniCredit Luxembourg was founded in 1971, providing corporate banking services in Luxembourg. Its main products and services are standardized short-term loans, structured finance solutions, and trade finance. A bank also offers treasury and business services, money markets products, foreign exchange in Major currencies, etc. Total assets with the Bank were 17,993.00 Million Euros, its annual profit was 69.00 Million Euros, and it employs around 150 people in 2017. Moody’s, the credit rating agency, has assigned the Bank’s long-term credit rating as upper-medium grade.
8. Intesa Sanpaolo Bank Luxembourg S.A.
It was founded in 1976 in Luxembourg, and earlier, it was known as Société Européenne de Banque (SEB) in 2007 after the merger of two major Italian banks changed its name to Intesa Sanpaolo Bank Luxembourg S.A. It offers services in retail banking, commercial banking, and investment banking. It operates as a subsidiary of Intesa Sanpaolo Holding International S.A. It mainly focuses on corporate banking (lending and Financing, cash management, trade finance) and wealth management products and services. In 2017 total assets with the Bank were 22,203.00 Million euros, and the annual profit was 135.00 Million euros. It employs around 170 people in 2017.
9. Nord/LB Luxembourg Covered Bond Bank
Nord/LB Luxembourg established itself in Luxembourg in 1972. It operated as Nord/LB Luxembourg until May 2015, when the two banks merged. After the merger, the particular Bank operated as Nord/LB Luxembourg Covered Bond Bank. Total assets with the Bank as of June 2018 were 15,532. 60 Million Euro. In the first half of 2018, the Bank reported a net loss of 12.9 Million euros. The Bank operates through financial markets, loans, client services, and businesses to businesses, bank management, and other segments. The Bank had 189 People in 2017, and the long-term credit rating of the Bank was lower to medium grade as of May 2018.
10. DZ Privatbank S.A.
Founded in 1977, it specializes in private banking, fund services, and loans in all currencies within the cooperative financial network. It also offers services in classical assets management, assets Structuring, financial and retirement planning, etc. Bank reported earnings after taxes of 11.4 Million Euros for 2018 and operating results of 36.0 Million Euros. The Bank employed around 939 people until 2018. The Bank’s long-term credit rating was very high as of May 2018, rated by credit rating agency Fitch. In 2010, it changed its name from DZ Bank International S.A. to its current name, Nord/LB Luxembourg.
This has been a guide to Top Banks in Luxembourg. Here we have discussed the 10 topmost banks in Luxembourg with their financial structure. You may also look at the following articles: