Banque Internationale à Luxembourg (BIL) has decided to shut down its Hong Kong office, BIL Wealth Management, in a strategic move aimed at strengthening its wealth management activities in Europe. A spokesperson in Luxembourg confirmed the move.

The bank's teams will continue serving Chinese clients through its two wealth management hubs in Luxembourg and Switzerland, the spokesperson added. The representative office in Beijing will remain fully operational.

Quite Surprising

This decision is quite surprising, particularly as BIL is owned by China’s Legend Holdings. However, the bank seems to have faced challenges in maintaining sufficient profitability in Hong Kong in recent years, compounded by the city's difficult economic environment.

BIL primarily operates its wealth management activities from Switzerland. However, the past few years have also seen reorganizations and cost-cutting measures in this location.

New Focus

The bank is now focusing more on corporate finance and services for entrepreneurs in Switzerland. Thanks to its parent company in Luxembourg, BIL benefits from a sufficiently large and stable balance sheet to support these efforts.