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Luxembourg Banks Insights 2014

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2014 KPMG Luxembourg S.à r.l., a Luxembourg private limited company, is a subsidiary of KPMG Europe LLP and a member of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.



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Partenaire �nancier privilégié des entreprises et des particuliers au Luxembourg, le Groupe BNP Paribas accompagne ses clients en leur proposant la gamme de produits et services la plus large pour répondre à leurs besoins. Avec près de 4.000 collaborateurs au Luxembourg, le Groupe se positionne en tant que premier employeur du secteur �nancier et comme deuxième plus grand employeur du secteur privé luxembourgeois.

Le Groupe BNP Paribas est présent au Luxembourg à travers BGL BNP Paribas et plusieurs autres entités :

• Fondée en 1919, BGL BNP Paribas se positionne parmi les plus grandes banques du Grand-Duché de Luxembourg et proposeà ses clients particuliers, professionnels, banque privée, PME et grandes entreprises une gamme de produits particulièrementlarge.

• BNP Paribas Securities Services propose une expertise reconnue de longue date et un savoir-faire unique dans l’administrationet la conservation des fonds, les émissions obligataires internationales et leur ingénierie respective.

• BNP Paribas Investment Partners offre une gamme complète de services de gestion �nancière aux clients institutionnels et auxdistributeurs à travers le monde.

• BNP Paribas Real Estate accompagne ses clients entreprises, institutionnels, investisseurs et particuliers à chaque étape ducycle de vie de leur immobilier.

• Cardif Lux Vie propose une gamme de produits et services sur trois lignes d’activité complémentaires : le Wealth Managementsur le marché international, l’assurance Retail (via le réseau d’agences de BGL BNP Paribas) et l’assurance Entreprises.

• BNP Paribas Factor offre des solutions de protection, de gestion et de pré�nancement du poste clients des entreprises permet-tant à celles-ci d’obtenir un �nancement court terme alternatif et de se concentrer sur leurs activités.

• Arval offre des services de leasing opérationnel exclusivement aux sociétés en mettant en œuvre des solutions qui simpli�entet optimisent la gestion de la mobilité automobile de ses clients.

• BNP Paribas Leasing Solutions est leader sur le marché local du leasing �nancier et offre des solutions attractives de �nance-ment d’équipements à la clientèle professionnelle.

Grâce à la diversité de ses activités et au professionnalisme de ses équipes, le Groupe contribue activement au développement de la place �nancière et du secteur bancaire luxembourgeois. En 2014, BGL BNP Paribas a été désignée « Best Private Bank au Luxembourg » par Euromoney, pour la 3e fois en 5 ans. La banque détient par ailleurs le label d’Entreprise Socialement Responsable de l’INDR (Institut National pour le Développement Durable et la Responsabilité Sociale des Entreprises).

Réussissons ensemble

AnnonceQLuxembourgBankInsight2014(Print).indd 1 5/19/14 7:45 AM

2, rue Nicolas BovéL-1253 Luxembourg

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WEALTH INSURANCE DIFFERENTLYsince 1992

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Luxembourg Banks Insights 2014 1

Acknowledgements

We would like to thank:

Pierre Gramegna, Minister of FinanceJean Guill, Commission de Surveillance du Secteur FinancierDr. Boris Liedtke, Deutsche Bank LuxembourgFrédéric Otto, rche amily ffice and Arche Wealth ManagementCarl Verbrugge, Lombard OdierYves Maas, Credit Suisse, Luxembourg Bankers’ Association

for sharing their points of view with us in this report.

We thank the teams at the Luxemburger Wort who have worked on this report.

KPMG Contributors:Clément BastideRavi BeegunGeorges BockSarah BrookStanislas ChambourdonEmmanuel DolléThomas FeldGérard LauresNathalie MayerusHelmut MertensAnne-Sophie MinaldoJean-Pascal NepperAlain PicquetGeoffrey PoupierDiana TurchiMarco Weber

Sources:“Rapport d’activités 2013” issued by the Commission de Surveillance du Secteur Financier (CSSF Annual Report 2013)“Revue de Stabilité Financière 2014” issued by the Luxembourg Central Bank (BCL)Annual accounts of banks, Luxemburger Wort and press articles

Photos:Luxemburger Wort

02 Foreword03 Message from Pierre Gramegna05 Introduction from Georges Bock07 Interview with Jean Guill

10 Insights11 Approach12 Overview of 30 banks14 Executive Summary20 Infographics26 Banking sector overview28 Assets38 rofit t

45 Interviews46 Deutsche Bank Luxembourg48 r e fi e r e e t e e t50 Lombard Odier52 Credit Suisse and ABBL

55 Introduction from Stanislas Chambourdon56 Megatrends 57 Implications

64 Overview

63 Bank Rankings 2013 Overview

54 Bank CEO Agenda

Contents

Foreword Insights Interviews Bank CEO Agenda Bank Rankings 2013Foreword Insights Interviews Bank CEO Agenda Bank Rankings 2013

Foreword

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Message from Pierre Gramegna

““

BIO

Title: Minister of Finance

Organisation: The Government of the Grand-Duchy of Luxembourg

Website: ttp p

Location: City Centre

TAGS

Automatic Exchange of Information Gradual Banking Secrecy Adapt

Private Banks Transparency Confidentiality Data

Banking Union Taxpayer Bail-out

Image Luxembourg Resolution Fund

Contribution Finance Gathering pace

The model of society we’re putting in place is transparent to the extreme and the balance is about to tip too far.

The Luxembourg financial centre is seeing both its business model and governance challenged with the gradual phasing out of banking secrecy and introduction of the banking union. This year, the first concrete steps will be taken towards the realization of these two developments, born out of the 2008 financial crisis. Finance Minister Pierre Gramegna supports the coming changes and sees in them a real opportunity for the Luxembourg finance centre. He has his sights set on Improving brand Luxembourg’s image.

> Moves towards banking secrecy have gathered speed with the exten-sion of the European Savings Directive and the OECD initiative to adopt international standards on the exchange of tax information. Was this quickening of pace inevitable?

The Luxembourg government’s progress in adopting the automatic ex-e o or t o t tter ee te r r t o

the former Prime Minister announced that Luxembourg would be moving t re t o o e er t e ro to p tt t p e o e t o e e e o er e t e e re t e e e e e

e o e o e t e re t e r o o er e o e to unequivocally accept this change of course and agree to a broader ap-pro to t e to t e e o or t o e e re

e e to o o e tt e r pro e o e t e e o r fi e tre to pt e e ee t t - e re e or r te t e o or ot er fi e

e tor

> Does this not pose a danger for Private Banks in Luxembourg? e ee e to p e prep re t e r t e

e e oo t to er o p epo t to e ee stabilization and that levels are much the same for March this year as for

r e t ere ore e t ee e e e t t o t t to e t t t e e t e fi re e ore o p e re t t t

some clients – mainly smaller ones located relatively close to Luxembourg re t o o t e r o t o tr t r er e t ro rt er fie re rr t e ee ore op t te pro t

> Since the 2008 financial crisis, there has been mounting pressure to reach full transparency on individuals’ financial information. Just how far do you think the scales will tip in the direction of transparency?

Through the exchange of information and other laws moving in this direc-t o e re t e pro e o re t te ere t p er re tot tr p re t t te re o e to er te t r o to re e e t po e t e per e t ept e o e t e o e er e e o e ro ert e ree o to er e t

r e e o ept e to ero to er e t te ro o r becoming a society which collects a vast array of data about individuals: or re o o e r t to t e fi t t terror t o e to

re e e fi e t e o t t t e e o t e t e model of society we’re putting in place is transparent to the extreme and t e e o t to t p too r ort te o e er t e e tendency here in the European Union to say that we should also be pro

Pierre Gramegna

Luxembourg Banks Insights 20144 Luxembourg Banks Insights 20144

te t t e t ere ore e t o sides which will have to balance themselves out and - in Luxembourg - we won’t be giving up on the notion o o fi e t t t ter e t re e o

eet ot re e t o re e t ee

> Both European Member States and the EuropeanParliament have approved the European Banking Union. Between November next year and early 2016, the union will, piece by piece, become a reality. Can the banking union really bring added security to the Eurozone?

The fact that we succeeded in negotiating such a union or re t or t e ro o e to t e -

o e e t r e re po e o e r e o e to prote t o tr e

prote t ot t p er er or t p -er e e to o t e o r e ee e ore t e

o ere t p to t e t te t ere-fore the taxpayer - to save large banks in cases where t e ee e o t ro o o t o r e

e ro e e o o er e to to t e t te o er or er to o t

> Will this system prevent situations like that seen in2008, where two banks had to be saved very quickly, each time in one weekend?ort te t e e t r to o e t e t e e fi t ee e et t e o e r e or or re o fi t e

o et t e t p t o e e p to o o o to e t e

o o e efi e ro e e to re o e r e ee e e t t

e e e p t ee to e o e

> As part of the banking union, there will be a resolu-tion fund which will reach €55 billion in eight years. How will Luxembourg banks’ participation in this fund be calculated?

e t o e e et to er t er fi t to e t o o t e e t r ter

t t e ret e t e o o pro e to make propositions on national contributions some-t e t er t t e o e t t ere e t er te t

or t o t o t e te e o thing I can say is that – if we take Luxembourg’s impor-t e rope fi e tre to o t t e country will clearly be set to make a relatively large o tr t o

> The end of banking secrecy is well under way: inte-gration into the banking union, too. However, these steps have done little to quieten Luxembourg’s crit-ics. Will we have to wait even longer before seeing improvements in Luxembourg’s image?

One might say that the improvements to Luxembourg’s image are just beginn t e t re er t e that a reputation – whether founded or unfounded – can never be overturned in just a few weeks or by a general shift in attitude: the greater public only follows events ro r o pro e o r rep t t o e ee t e

I can say that I will travel night and day on this matter with much endurance and diligence over the coming

e r t port t t or tr e also the government as a whole - to which very close

tte t o o e p e t e e t e o e e

Free translation of interview conducted by Luxemburger Wort




Introduction from Georges Bock

“ “

o ote r r e o o t e e tt e t re e o to peop e o see possibilities before they be o e o o tor o fir e t e t e t t t tr e e t e fi t to oo beyond the realm of today during periods of transformation - such as that which the Luxembourg banking industry is currently traversing - t per t e t t o o t e re to re te t re re er e

re e o t e r p te r pp t t e e o e re e re po to re re tor pre re o e er

it is precisely at this time of change that anticipating the next step becomes e e ore port t

e pee e t e er o o r rre t o e e fi t t ore t e t ee o o e e er t o t e oo er o -

e o er e t e tr e o e er t e er t o oe to ret re e t e o o e e o e e to e o tr te

e o r p t o e p te o o re t o r e er e pe e er t o e pe t t o e

or p t o t e tr

e p t o o t e e e tret r e ro t er-e ppro to r et e e t e profi e o e p o ee er o r t tr or t o p rt o t re t t e p t

The demands of the future are global and due to its highly globalised e o o e o r o o e t to t

t t e t o o e t to re t e re e o r ppe r tt e er to e o e re ert ret -

e e to t o e er e t e o tr o t o r fir t digital marketing survey – conducted late 2013 - some banks expressed concerns about whether digital engagement with customers might be a)

ot re e t or t e t r t or t e r or t o This raises questions about readiness to adapt to the consumer’s changing pre ere e

t e re er e e o t e o o e er t ere to e ope Luxembourg already offers a host of examples of banks looking to break ree o t e e o t e p t t o r t t o ee

recently on the market - are prime examples of sustainable thinking: a sig-fi t o e to r oo t te o o p t e t e o ter

Such a break with convention proves that the industry is starting to adapt: t fir t tep to r eet e o

BIO

Title: Managing Partner

Company: KPMG Luxembourg

Website: p

Location: Strassen

TAGS

Transformation Future-ready services Luxembourg Banking

secrecy Regulatory pressure Baby-Boomers Demographic shifts

Social shake-ups Technology Generation Y Digital

Engagement Outsourcing

Mutualisation Sustainable 2030 Expectations

Demographic shifts, social shake-ups and technology’s increasing ubiquity will shape Generation Y’s expectations.

Georges Bock

2011 2012 2013

2011 2012 2013

Net profit

Number of staff

Number of banks

Cost-income ratio

Banking income

Total assets

713€ billion

735€ billion

793€ billion

3.6€ billion

3.6€ billion

2.5€ billion

10.5€ billion

9.8€ billion

8.9€ billion

50%

51%

54%

141143 147

26,23726,537

3%

7%

1pts

6

1%

26,695

Source: CSSF


Luxembourg banking industry indicators




Interview with Jean Guill

“

BIO

Title: Director General

Company: Commission de Surveillance du Secteur Financier (CSSF)

Website: ttp

Location: Strassen

TAGS

Supervision Financial crisis Banks Adapt Private

Banks Single Supervisory Mechanism Eurozone

Systemic Harmonised procedures

Sovereignty Asset review Valuation Luxembourg Global oversight Prudential Supervisory Council Steering committee

You could see the Single Supervisory Mechanism as a loss of national sovereignty, but it’s also a way to get involved in European sovereignty.

“You could see the Single Supervisory “You could see the Single Supervisory

Ne t No e er t e rope re per e e pro o e o r t e e e ot t p rt er or almost half of its banks: they will be under the direct supervision of the

rope e tr t e e per or e or t e t e ot o po er to re t o er ee

e t t e e t e p ro e per t e ro o e

Single supervision of the Eurozone should be a key element in making the rope fi te ore e re t t e t e fir t o

t e t ree p r o t e o to e p t p e e t No e er The aim is to give to one sole authority – the SSM – the responsibility for

per t e rope t t e ee ee e te other words 130 banks whose failure might trigger a banking crisis which

o e t ro o e o tr e e e t e ore t o e rope o tr ere pre o per e o t o e e t

o o o er t o t e r t t e e fi r t o e

It is hardly surprising that almost half of banks operating in Luxembourg o e fi e tre ter t o t re er t e

t or t t e rope o tr t o re t o e e e o t t e ee t per or ro e o t o e e e ere

e or e e or t o e o re er t re t per -o t ro e e tr t re te pe fi re t e t o r o e pro e re t o er p e or to e o re tor r e o per o t t e

> Taking part in the supervision of the entire Eurozone

et re tor e er o t e e fir t t t e oo t r o t o re er t t e e re e

te roo to oe re e tre e o o ee t e o o t o o ere t t t o to et o e rope o ere t e e o ee e o r e t o

t e pr e t per o o e repre e t t e per e er t te e er e o e t p t e t

or e o r o e o t e teer o ttee or o e e r e pr e t per o o ttee t e t prep r e o or t e pr e t per o o

The CSSF’s message is quite simple: while it is losing sovereignty on a t o e e t e e o er o rope re per-e e o r t o e o t er t rope r o -

t o o r ore tr p re e r t to t e te o e r o e per o e re t t ro

Nort er er tre te t e e o e ro o t er p e p e

o e er to r tee t e oo e t o rope t re te o fir t o e o e t p t e e et re-

e rre t er ro rope t t o t or t e t p rt e o r re e te e te o t o o fi e to e e o to e t t t e t o o et t e

Jean Guill

Luxembourg Banks Insights 20148 Luxembourg Banks Insights 20148

t pre e t r ro peop e ro t e re o e t p t t o e er t ot pro e to e e o rt o t e or ee

t e o tor pport t e t o o o e to e o er t e

er

t o to t e et re e t ere o tre te t or r e rope t o e o t e t e

ro o e o e to re p t t o or t o e o pro e to e too e ere e o t r-

pr e tore or e o r e -fir e e re re t e e o r to

e er e t r t o t t t re re e

t e e t e per or t or t ee t e face of the coming upheaval in banking supervision because – for them – the creation of the SSM is the fi t e o o er e to per o e t e fi r t e fi t tr or e t o or Not t e e ope o te

e re te e te ep rt e t t fi e e r t pro re e ro t e er to over 500 and will continue to grow in the years to o e e fir t e pe te o e e e o t

come in summer 2015: the CSSF will move to a new building constructed for 620 people … which could oo e too e

Far from seeing the volume of work shrinking with rope r o t o t e e o r t or-

ity will have to take on more staff so as to take on the increased amount of work from both supervising

rope o per e t e t e t e re t e e to or e t er

ter t e re o per e t e

Free translation of interview conducted by Luxemburger Wort


itch ffirms Luxembourg at ‘AAA’; Outlook Stable

Falling bank rates in euro zone periphery add to

recovery hopes

Luxembourg and Austria lift veto to back tax plan

Luxembourg’s challenge to London over China’s Yuan

Luxembourg association welcomes reform

on banking secrecy

Banking sector job numbers continue to fall

Bank numbers rising in Luxembourg

Luxembourg says talking with China about mutual

fund recognition

China’s yuan might ultimately challenge dollar:

ECB’s Mersch

Bettel- Luxembourg won’t block expansion of EU

savings directive

Update-Moody’s: Luxembourg banks are financially sound extra regulatory pressure weighs on private banking

franchises

Reuters

Reuters

ReutersFinancial Times BBC News

ReutersReutersReuters

ReutersReuters

WSJ

Paperjam

Austria, Luxembourg Accept EU

Bank-Secrecy Law

Le secteur bancaire r uni face à ses d fis

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OECD FATCA:the a in the plan slamic finance

is Luxembourg an emerging country?

WORT

WORT

WORT

Luxemburg streift Image der Steueroase ab

Börsen-Zeitung

reasons why the FATCA agreement is good for Luxembourg

Steps forward for the EU Savings Directive

Luxembourg says attracting more Chinese banks

What does the media say?

Our selection of articles related to the banking sector

http://www.ft.com/intl/cms/s/018d3a86-b0f2-11e3-9f6f-00144feab7de,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F018d3a86-b0f2-11e3-9f6f-00144feab7de.html%3Fsiteedition%3Dintl&siteedition=intl&_i_referer=http%3A%2F%2Fsearch.ft.com%2Fsearch%3Fq%3Dluxembourg%2Bbanks%26t%3Dall%26fa%3Dpeople%252Corganisations%252Cregions%252Csections%252Ctopics%252Ccategory%252Cbrand%26s%3D-initialPublishDateTime%26curations%3DARTICLES%252CBLOGS%252CVIDEOS%252CPODCASTS%26highlight%3Dtrue%26p%3D4#axzz34QmJeKGU



http://www.wort.lu/en/business/banking-sector-job-numbers-continue-to-fall-5368de4bb9b3988708025fa4

http://www.wort.lu/en/business/bank-numbers-rising-in-luxembourg-5332e506e4b010773e201113

Insights




KPMG Luxembourg performs an annual analysis of the Luxembourg banking market based on statistical and annual accounts data of a e e t o o e o r

The analysis takes into account industry data as stated in the report o t e t e t e e r er ort t published or made available by

ere po e t ee to e t ro pe fi

information published or included in the annual accounts of individual

t o e e e e t r the overall trends observed in the

r et p eOf the 109 banks incorporated in

e o r o r e o e e t o o

o e or ot er repre e t the banking sector in terms of

et profit er o e p o ee or tot et o e e e te

ot e fi t p er t e e re t characteristic which is relevant to t report ere ore t e e t o is not designed to be and is not to

e o tr e or r rather it is constituted for

t p rpo e o

The banks selected are listed in the t e o er e er t e e repre e t o et profit (compared to an industry total of

o o t e tot er o e p o ee

of the total assets of the banking tr

Branches of foreign banks (total number: 38) are not considered individually for this report as their annual accounts are not publicly

eAnnual accounts reviewed for the purpose of this report are the unconsolidated annual accounts prepared in accordance with Luxembourg legal and regulatory re re e t or in accordance with International Financial Reporting Standards

ot t e e o e re available under Luxembourg

e tr o er fi re re

based on FINREP reporting by Luxembourg banks (in accordance with IFRS accounting principles as

opte t e rope o

Approach

Approach

Foreword Insights Interviews Bank CEO Agenda Bank Rankings 2013


Overview of 30 banks

Overview of selected banks 2013Net rofit Staff Assets

Rank o Rank Number Rank o

1 Société Générale Bank & Trust D 1 312 D 7 829 2 41,877

2 Banque et Caisse d’Epargne de l’Etat, Luxembourg 2 208 D 3 1,797 D 4 40,664

3 Deutsche Bank Luxembourg 3 189 22 299 D 1 89,245

4 State Street Bank Luxembourg 4 181 D 11 715 18 8,741

5 CACEIS Bank Luxembourg 5 171 D 6 838 3 41,424

6 Banque Internationale à Luxembourg 6 168 D 2 1,868 D 6 19,496

7 Société Européenne de Banque 7 166 32 166 10 14,646

8 BGL BNP Paribas 8 146 D 1 2,792 D 5 31,245

9 UniCredit Luxembourg 9 129 29 186 7 17,348

10 DekaBank Deutsche Girozentrale Luxembourg 10 126 D 16 397 20 7,645

11 ING Luxembourg 11 120 9 791 13 12,389

12 J.P. Morgan Bank Luxembourg 12 112 D 14 518 21 7,340

13 Pictet & Cie (Europe) 13 87 24 268 34 4,526

14 Deutsche Postbank International 14 80 33 145 16 10,583

15 Banque de Luxembourg D 16 69 D 10 744 12 12,845

16 Banque Degroof Luxembourg 17 59 D 23 289 46 2,572

17 Nomura Bank (Luxembourg) D 18 54 19 350 30 5,249

18 Nordea Bank 19 52 21 313 35 4,504

19 DZ Privatbank 20 45 8 810 11 13,766

20 Crédit Agricole Luxembourg 22 41 D 18 359 33 4,827

21 UBS (Luxembourg) 23 40 D 15 438 17 9,891

22 KBL European Private Bankers 26 35 D 5 951 19 8,413

23 Banque Privée Edmond de Rothschild Europe 30 27 D 12 656 26 5,570

24 Norddeutsche Landesbank Luxembourg 31 27 D 26 229 9 15,056

25 RBC Investor Services Bank 33 26 D 4 1,472 14 12,117

26 Commerzbank International 38 21 39 127 44 3,000

27 Clearstream Banking 39 19 20 322 15 11,247

28 Banque Raiffeisen 42 18 D 13 580 22 6,354

29 HSBC Group* 101** -27 15** 489 25** 5,946

30 Hypothekenbank Frankfurt International 102 -54 88 19 8 16,681

Total amount of selected banks 2,647 19,757 485,208

Total of Luxembourg banks 3,565 26,237 713,380

74% 75% 68%

Overview of 30 banks

*aggregatedfiguresof3HSBCentities**rankingthatwouldapplybasedonaggregatedfigures

Source:LuxemburgerWort

SOCIETE GENERALE BANK & TRUST, a public limited company governed by Luxembourg law having its registered of�ce at 11 Avenue Emile Reuter, L - 2420 Luxembourg and registered with the Luxembourg Companies and Trade Register in Section B under number B 6061. © Corbis

W W W. S G B T. L U

As a key player in an international financial marketplace, we will offer you the benefits of our multi-specialist banking skills in tandem with the expertise of the Societe Generale group, one of the leading financial services groups in Europe. With more than 120 years of experience in Luxembourg, we have developed all the capabilities of a multi-specialist bank, offering services to business customers, institutional investors (Securities Services) and high net worth individuals (Private Banking) via our highly active trading room.

SOCIETE GENERALE BANK & TRUST

B Y Y O U R S I D E I N E V E RY F I E L D



Executive Summary

Trends observed in 2013

• or t e fir t t e e t e er o re e e e pe t t o pre te t t o o t o re tr t r o e e t e p t o t e er o t e o e er t ot t e e

• e p te t e er o re t e er o t t e re e t e to re tr t r e re t e er

• ot et e re e o o rt er re t o r e te et

Size of the Luxembourg banking industry

Executive Summary

banks at31December2013

147bank staff at31December2013

26,237total assets ofbanksat31December2013

713 billion

Tota

l sta

�To

tal a

sset

s (E

UR

billi

on)

Num

ber

of b

anks

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

169 162 155 156 156 152 149 147 143 141 147

656695

791840

915 931

27,205

793762 793

735 713

22,529 22,55423,227

24,75226,139 26,420 26,254 26,695 26,537 26,237

Source:CSSF


Interest margin € 5.1 billion

Commission margin € 4.0 billion

Other revenue € 1.4 billion

Banking income € 10.5 billion

9%

8%

149%

7%

Employee costs € 2.8 billion

Other charges € 2.5 billion

Total expenses € 5.2 billion

5%

3%

4%

Banking income

Expenses


• o o r ro t e e o e po t e tre e to t e po t e development of stock markets

• t o p e e te o t e re e pe e t re e pro e e p e t e re e o t o o p t t e ro er o re t o

• o t o o o tere t r te e re tot e eet re te o er tere t r

• t er re e e fi t re e t to r et pr e r e to

Net profit before provisions and taxes

Net profit after provisions and taxes

€ 5.3billion 9%

€ 3.6billion 1%

2013 Perfomance indicators

Source:CSSF



Executive Summary

Total capital and reserves€ 52 billion

2% points19.7% 70%

Capital adequacy Liquidity ratio

€ 43 bn tier 1 capital 8%

Other

1% point


• er p t fi t re e o e o r p t e t o o e

• t r t o t re e to o er o e t e re re t re o

Capital, solvency and liquidity indicators

Source:CSSF,BCL



• Increase in the value of assets under deposit was mainly due to rising stock markets

• e proport o o o pr te e t re e ro to o growing appetite for Luxembourg beyond European borders

ot er pro e o o t e fi e tor 5%(€ 7.3 trillion)

e r ett e e t or t o 1%(€ 1.2 trillion)

e t e t 10%(€ 2.7 trillion)

t er et epo te 2%(€ 0.3 trillion)

2014 € 11.5 trillion

Source:CSSF

PrivateBanking-AssetsunderManagementascalculatedbyPrivateBankingGroupLuxembourg(PBGL)Source:PBGLGeneralMeeting,June2014

307 billion AuM

Assets under deposit with banks andAssets under Management (AuM) indicators



Executive Summary

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

€ 953 billion

€ 1,106 billion

€ 1,525 billion

€ 1,845 billion

€ 2,059 billion

€ 1,560 billion

€ 1,841 billion

€ 2,199 billion

€ 2,097 billion

€ 2,384 billion

€ 2,615 billion

7,509

7,876

8,497

9,473

11,115

12,325

12,232

12.937

13,294

13,420

13,685

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

15,00010,0005,00003,0002,0001,0000


• t e o t port t e o o r er or t e e o r e tor t e e t e t tr et o o o t e r et e o et et ro e o

• Bond funds structured as Specialised Investment Funds were the main contributers to this growth

management companiesat31December2013

195sub-funds at31December2013

13,685total net assets ofinvestmentfunds at31December2013

2.6 trillion

Size of the Luxembourg investment fund industry

Source:CSSF

Total net assets Number of sub-funds

eep your finger

on the pulse

no matter

here you are

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© 2014 KPMG Luxembourg S.à r.l., a Luxembourg private limited company, is a subsidiary of KPMG Europe LLP and a member of the KPMG et or o epe e t e er fir fi te t ter t o ooper t e ter t o e t t r t re er e


A V E N U E



Infographics

Russia

T

Israel

China

United StatesJ

Qatar

Canada

Brazil

Russia

2

Turkey

1

Israel

3

China

6

United States

6Japan

5

Qatar

3

Canada

2

Brazil

4

Number and geographical origin of Luxembourg banks

United Kingdom

9

Andorra

2

Denmark

1

Spain

2Greece

1

Latvia

1

Liechtenstein

1

7

5

France

14 Italy

9

Switzerland

11

Sweden

8

Germany

37

Portugal

2

Netherlands

3

Norway

2

Europe

115Belgium

Luxembourg

International Nature of the Luxembourg Banking Sector


Russia

T

Israel

China

United StatesJ

Qatar

Canada

Brazil

Russia

2

Turkey

1

Israel

3

China

6

United States

6Japan

5

Qatar

3

Canada

2

Brazil

4

Number and geographical origin of Luxembourg banks

United Kingdom

9

Andorra

2

Denmark

1

Spain

2Greece

1

Latvia

1

Liechtenstein

1

7

5

France

14 Italy

9

Switzerland

11

Sweden

8

Germany

37

Portugal

2

Netherlands

3

Norway

2

Europe

115Belgium

Luxembourg



Infographics

Number of Luxembourg banks passporting banking services in this country

Romania

Hungary

Finland

Iceland

Estonia

Latvia

Lithuania

Cyprus

Czech Republic

Slovakia

Ireland

Spain

Gibraltar

Malta

Norway

Greece

Poland

Bulgaria

United Kingdom52

5042

1

9

60

64 41

52

2423 26

50 23

40

25

25

23

26

7

23

24

25

2041

38

4337

Sweden

Denmark

Netherlands

Germany

AustriaLiechtensteinFrance

Belgium

SloveniaPortugal

Italy

6624

Luxembourg as a European banking hub for passporting banking services in the European Union

WACHSTUM DURCHSPEZIALISIERUNGPerformance made in Luxemburg

DIE ERFOLGSSTRATEGIE DER DZ PRIVATBANK S.A.:WIR MACHEN NICHT ALLES – DOCH WAS WIRMACHEN, DAS MACHEN WIR SEHR ERFOLGREICH.

Die DZ PRIVATBANK hat sich auf Marktbereichespezialisiert, für die der Finanzplatz Luxemburgbesonders günstige Wachstumsbedingungen bietet:Private Banking, Kreditgeschäft und Fondsdienst-leistungen. Eine Spezialisierung, die sich gelohnthat – auch für unsere Partner aus der genossen-schaftlichen FinanzGruppe Volksbanken Raiffeisen-

banken in Deutschland. Denn die DZ PRIVATBANKhat sich innerhalb von knapp drei Jahrzehnten zum größten Auslandsstützpunkt der FinanzGruppe und zu einer der größten deutschen Banken in Luxemburg entwickelt. Vermögende Private Banking-Kunden nutzen und schätzen unsere kompetente Beratung und persönliche Betreuung. Als Kompetenzzentrum der Volksbanken Raiffeisenbanken für Währungs-anlagen und Währungskredite sind wir einer der Marktführer in Deutschland. Weitere Informationen erhalten Sie unter www.dz-privatbank.com

ns T

DZ PRIVATBANK Anz Philharmonie 210 x 297 KPM Luxembourg Banks Insights 2014.indd 1 12.05.2014 10:03



Infographics

Geography NatureCounterparty

Banks

Public sector

Corporates

Households

436€ bn

156€ bn

44€ bn

56€ bn

86% Cross-border

14% Luxembourg 1% Participations

13% Fixed rate securities

86% Deposits

68% Cross-border

32% Luxembourg

85% Fixed ratesecurities

15% Loans

69% Cross-border

31% Luxembourg

42% Fixed rate securities

6% Shares

o to fi companies

19% Fixed income securities

43% Cross-border

57% Luxembourg

52% Other loans

48% Luxembourg real estate loans

Luxembourg banking sector main assets

Source:CSSF,BCL,ECB,OECD


Nature

e r t e o tr re o

e r t e o tr re o

OECD comparison of household debt as percentage of GDI

e r t e o tr re o

UK

Net

her

lan

ds

Sp

ain

Luxe

mb

ou

rg

Ital

y

Fin

lan

d

Den

mar

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Sw

eden

Au

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a

US

A

Oth

er

Ger

man

y

Fran

ce

112222

3344

911

15

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y

Inte

rnat

iona

l ins

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ions

Bel

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m

Oth

er C

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ies

Au

stri

a

Po

rtu

gal

Po

lan

d

Net

her

lan

ds

Luxe

mb

ou

rg

Sp

ain

US

A

Ger

man

y

Fran

ce

11111

3334

56

99

Luxe

mbo

urg

Oth

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ntr

ies

Net

her

lan

ds

Ger

man

y

Ital

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UK

Fran

ce

Irel

and

Sp

ain

US

A 11112

334

67

“

“

Domestic bank assets = 2 times GDP

Den

mar

k

Net

her

lan

ds

Irel

and

No

rway

Sw

itze

rlan

d

Au

stra

lia

Sw

eden

Ko

rea

Un

ited

Kin

gd

om

Luxe

mb

ou

rg

Po

rtu

gal

Sp

ain

Jap

an

Fin

lan

d

Un

ited

Sta

tes

Gre

ece

Fran

ce

Bel

giu

m

Est

on

ia

Au

stri

a

Ger

man

y

Ital

y

Cze

ch R

epu

blic

Hu

ng

ary

Po

lan

d

Slo

ven

ia

Slo

vak

Rep

ub

lic

0

50

100

150

200

250

300

350

Den

mar

kD

enm

ark

Den

mar

kD

enm

ark

0

50

100

150

200

250

300

350

20072012 or latest available year



Banking sector overview

e e e tro o e er o o er er t e te or o re t t t t o

e tot er o e o r t t e e o o re r e o ore

ro p ro t e t ree e o r o tr e er r e e e t re tro t e e o r o t o te t t e e o r r repre e t t e o t fi t ore

r t t e ro p

Luxembourg banking licenses fall into two categories under the law:

Universal banks

141banks

Banks issuing covered bonds

6banks

Banks by country of origin Number

Germany 37

France 14

Belgium/Luxembourg 12

Switzerland 11

Italy 9

United Kingdom 8

Other 56

Total 147


Luxembourgbankingsector

Private banking

BEMO Europe - Banque privée

Hauck & Aufhäuser Privatbankiers KgaA,

Niederlassung Luxembourg

Standard Chartered Bank, Luxembourg

Branch

ENTRANTS

LEAVERS

China Construction Bank (Europe) S.A.

HSBC Bank Plc, Luxembourg Branch

China Construction Bank Corporation,

Luxembourg Branch

GPB International S.A.

Banco Safra S.A., Luxembourg Branch

Société Générale Financing &

Distribution S.A.

Banque de l'Europe Méridionale, succursale de Luxembourg

Hauck & Aufhäuser Banquiers Luxembourg S.A.

Lloyds TSB Bank plc, Luxembourg Branch

Depositary Retail / Corporate Credits

Banking consolidation /restructuring

Closure / Liquidation

The new entrants and leavers during 2013 were as follows:



Assets

Evolution of assets in Luxembourg banks

0 100 200 300 400 500 600 700 800

2009

2010

2011

2012

2013

€ 793 billion

€ 762 billion

€ 793 billion

€ 735 billion

€ 713 billion

Source:CSSF

Total assets in Luxembourg banks fell to € 713 billion in 2013, a decrease of 3% compared to 2012.

n 201 , banks continued to reduce their fixed income portfolios, but placements with central banks increased. The decrease in total assets by € 22 billion was distributed by asset class as shown in the table below.

Evolution of assets in Luxembourg Banks

Development of Assets € billion Development of Liabilities € billion

Loans to central banks 14 Amounts owed to central banks 6

Loans and advances to banks 14 Deposits from banks 22

Loans and advances to customers 5 Deposits from customers 16

Securities 14 Other liabilities 7

Financial assets held for trading 1 Financial liabilities held for trading 3

Fixed and other long term assets 2 Capital and Reserves 0


he volume of placements with central banks decreased significantly in 201 , whereas intra bank loans increased.

Securities portfolios 0 of which are fixed income securities decreased by 14 billion during 201 , a decrease of roughly . f these, fixed income securities from sovereign issuers decreased by 1 as banks further reduced their exposures to specific countries.

Deposits from customers increased thanks to the higher levels of cash held by investment funds.

An analysis of top 10 banks in terms of total assets is shown in the table below:

Total assets € million Rank 2013 Rank 2012 Rank 2011

Deutsche Bank Luxembourg 1 89,245 1 85,329 1 95,945

Société Générale Bank & Trust 2 41,877 3 42,383 2 49,410

CACEIS Bank Luxembourg 3 41,424 2 47,649 4 36,762

Banque et Caisse d'Epargne de l'Etat, Luxembourg 4 40,664 4 40,480 3 39,763

BGL BNP Paribas 5 31,245 5 32,858 5 33,776

Banque Internationale à Luxembourg 6 19,496 6 21,091 8 24,014

UniCredit Luxembourg 7 17,348 8 19,319 6 25,949

Hypothekenbank Frankfurt International 8 16,681 7 20,471 7 24,502

Norddeutsche Landesbank 9 15,056 10 15,424 12 15,392

Société Européenne de Banque 10 14,646 12 13,997 15 12,024



Assets

Source:CSSF

Loans and advances to credit institutions

Loans and advances to customers

Fixed income securities

Financial assets held for trading

Other assets

53%

22%

19%

2%

4%

he asset structure mix has changed only slightly from 2012, with fixed income securities increasing their relative importance in bank balance sheets, in contrast to loans and advances to central banks which reduced their relative importance in those balance sheets.

Composition of assets 2013

Asset structure


Source:BCL

No fi orpor te

t er fi ter e r e

o e o

t or t e

r e o p e pe o e e

In 2013, the Luxembourg banking sector made provisions of €0.9 billion against assets for various reasons, and coming from a limited number of banks. his amount represents 1 of banks net profit before provisions.

Loans and advances to customers are mostly split amongst other financial inter-mediaries, non financial corporates, and households.

Within the eurozone, the analysis is as shown in the diagram below.

he loan book mix has not changed significantly from previous years, but the relative importance of both household loans and non financial corporate loans increased whereas the relative importance of the financial intermediates loans decreased compared to 2012.

Eurozone customer loans

The total amount of capital needed by banks to cover credit risk fell by 5% to € 17.2 billion. At the same time, the own funds rose by 5% to €47.4 billion. This resulted in a 2% points increase in the Capital Adequacy Ratio, from 17.7% to 19.7%.

For an overview of the distribution of bank assets by counterparty, geography and nature, please refer to our infographic on pages 24 and 25.

Asset quality



Assets

Source:CSSF

Liabilities to credit institutions

Customer deposits

Debt securities

Capital and reserves

Other liabilities

41%

39%

8%

7%

5%

The three main funding sources for the banking sector continue to be, in order of decreasing importance, interbank financing representing 41 excluding central banks), customer deposits and debt securities issuance.

Composition of liabilities 2013

Funding


Source:BCL


t er fi ter e r e

o e o

orpor te

r e o p e pe o e e

t or t e

57%

20%

15%

5%

3%

Banque et Caisse d'Epargne de l'Etat, Luxembourg

Leading banks in terms of customer deposits Total Change

€ 25 billion

BGL BNP Paribas € 19 billion

CACEIS Bank Luxembourg € 16 billion

2%

0%

6%

Deutsche Bank Luxembourg € 13 billion

Société Générale Bank & Trust € 13 billion

42%

10%

Customer deposits

In 2013, customer deposits increased by € 16 billion to € 276 billion.

he net increase is mainly due to an increase in deposits from financial intermediaries, which include investment funds.

The banks with the highest deposits from customers are given in the table below.

Customer deposits



Assets

Source:CSSF


BGL BNP Paribas

Leading banks in terms of capital and reserves Total Change

€ 5.5 billion

Deutsche Bank Luxembourg € 4.8 billion

Banque et Caisse d'Epargne de l'Etat, Luxembourg € 3.1 billion

State Street Bank Luxembourg € 2.6 billion

Société Générale Bank & Trust € 2.5 billion

Capitalisation

0%

2%

11%

9%

5%

Capitalisation

Own funds Solvency ratio

0 10,000 20,000 30,000 40,000 50,000 0 5 10 15 20

2009

2010

2011

2012

2013

€ 44,151 million

€ 43,495 million

€ 42,807 million

€ 45,664 million

€ 49,002 million

2009

2010

2011

2012

2013

17.5%

17.6%

17.4%

17.7%

19.7%

Eligible own funds rose by 5% to € 47.4 billion. This was supported by a 5% decrease in risk weighted assets having a significant impact on the aggregate capital ratio, which increased from 1 . to 1 . . he solvency ratio for the industry, however, remained more than twice the required minimum of 8%.

Leading banks in terms of capital and reserves are given below:

he above mentioned figures include the provision for general banking risks and exclude the profit loss for the current year.


Source:BCL

0 10 20 30 40 50 60 70 80

2007

2008

2009

2010

2011

2012

2013

61%

67%

65%

65%

69%

69%

70%

Minimum threshold

The liquidity ratio is calculated as a percentage of liquid assets to current liabil-ities. In 2013 it rose by 1% point to 70%, well above the required minimum of 30%.

Liquidity



Assets

Source:CSSF

By Investment Funds € 2.7 trillion

By Clearing and Settlement organisations € 1.2 trillion

By other Professionals of the Financial Sector € 7.3 trillion

Other assets deposited(including from private banking activities) € 341 billion

1%

5%

10%

2%

Assets deposited with banks Amount Change

Total assets deposited with Luxembourg banks increased overall in 2013, mainly due to a rise in market values.

Investment funds

The value of assets deposited by Investment Funds rose due to an increase in the market value of securities (some € 232 billion), and thanks to net new money owing into funds some 1 4 billion in 201 .

Private banking Assets under Management

Other assets deposited include assets managed in the context of private bank-ing activities, but exclude investments in funds. Assets under Management (AuM) had risen slightly from €300 billion in 2011 to €307 billion in 2013. The proportion of clients from outside the EU increased from 33% in 2008 to 43% in 2013.

Assets deposited with banks



Profitability

Source:CSSF

rofitability

3.0

Source: CSSF

Tax charge

Net provisions

Expenses

Interest margin

Commission margin

Other net revenue

€3.6BILLION

€0.5 Bn

2013Net profit

2012Net profit

€0.3 Bn

€0.9 Bn

€0.2 Bn €0.3 Bn

€3.6BILLION

€0.2 Bn

€0.3 Bn

While interest margins decreased, commission margins increased in 2013.

However, other net revenue increased by a higher amount, leading to an overall rise in banking income of 10%.

he diagram below illustrates the changes in net profit compared to 2012.

er ie of change in net profit compared to pre ious year


Source:CSSF

€0Million

€1,000Million

€2,000Million

€3,000Million

€4,000Million

€3.6Billion

20132009 2010 2011 2012

€2,056Million

€3,817Million

€2,490Million

€3,597Million

€3,565Million

Source: Data from CSSF Annual Report 2013

he evolution of the net profit of Luxembourg banks over the past years is shown below

n analysis of the top 10 ban s in terms of profit after ta is sho n in the table belo .

Net profit

Profit after Tax € million Rank 2013 Rank 2012 Rank 2011

Société Générale Bank & Trust 1 312 1 433 2 258

Banque et Caisse d'Epargne de l'Etat, Luxembourg 2 208 4 198 5 187

Deutsche Bank Luxembourg 3 189 2 251 6 177

State Street Bank Luxembourg 4 181 8 154 8 149

CACEIS Bank Luxembourg 5 171 3 208 11 96

Banque Internationale à Luxembourg 6 168 28 31 102 -1,704

Société Européenne de Banque 7 166 10 134 10 103

BGL BNP Paribas 8 146 5 191 3 252

UniCredit Luxembourg 9 129 6 181 4 214

DekaBank Deutsche Girozentrale Luxembourg 10 126 7 162 1 441



Profitability

0

2000

4000

6000

8000

10000

2009 2010 2011 2012 2013

67%

1%

38%

57%

5%

66%

-9%

56%

6%

38%

48%

14%

32% 43% 38%

9,545

10,482

9,788 8,867 9,834

Interest margin and dividendsCommission incomeOther Net Revenue

For the purpose of this report, banking income consists of income from interest, dividends, commission and other net revenues.

et business income is defined as banking income less other net revenues.

Banking income

The increases in other net revenue by € 0.9 billion and in net commission income by 0.3 billion contributed to an increase in the total banking income, which rose by 7% in 2013.

Net interest income, on the other hand, fell by € 0.5 billion as a result of low interest margins and reduced volumes.

Banking income and net business income

Source:CSSF


BGL BNP Paribas

Leading banks in terms of net interest margin Total Change

€ 548 million

Banque et Caisse d'Epargne de l'Etat, Luxembourg € 391 million

Deutsche Bank Luxembourg € 365 million

Société Générale Bank & Trust € 242 million

Banque Internationale à Luxembourg € 235 million

Interest margin

3%

11%

8%

5%

27%

The leading banks generating net interest income in absolute terms are:

The table below shows the top 10 banks in terms of net business income.

Interest margin


Net Business Income € million Rank 2013 Rank 2012 Rank 2011

BGL BNP Paribas 1 819 1 862 2 746


Banque et Caisse d'Epargne de l'Etat, Luxembourg 3 598 3 561 3 491


Deutsche Bank Luxembourg 5 427 6 379 16 185

Banque Internationale à Luxembourg 6 383 5 412 106 -297

Clearstream Banking 7 382 7 376 4 400

State Street Bank Luxembourg 8 345 8 313 8 287

RBC Investor Services Bank 9 318 16 189 7 300

J.P. Morgan Bank Luxembourg 10 279 12 246 12 238



Profitability

Clearstream Banking

Leading banks in terms of net commission income Total Change

€ 356 million

J.P. Morgan Bank Luxembourg € 236 million

State Street Bank Luxembourg € 211 million

RBC Investor Services Bank € 191 million

BGL BNP Paribas € 180 million

Net commission income

2%

14%

17%

7%

34%

The leading banks generating net commission income in absolute terms are:


ther net revenues increased by million in 201 , to reach 1.4 , helped by further recovery of the financial markets.

Net commission income

Other net revenues

aschockmel

Typewritten Text

aschockmel

Typewritten Text

aschockmel

Typewritten Text


Source:CSSF

Other administrative costs

Staff costs

€0Million

€2,000Million

€4,000Million

€6,000Million

20132009 2010 2011 2012

55% 54% 53% 53% 53%

45% 46% 47% 47% 47%

Total expenses consist of staff costs and other general administrative costs.

In 2013, total expenses increased by 4%. Staff costs rose by 5%, partly explained by indexation. Other general administrative costs also rose by 3%.

he significant increase in other net revenues has countered the rise in expenses resulting in a cost in-come ratio of 50% compared to 51% last year.

This is still below the average cost-income ratio for banks within the European Union which stands at 61% (Source: Consolidated Banking Data June 2013 – European Central Bank Eurosystem website).

Total expenses

Banks 2013 2012

Cost- income ratio 50% 51%

EU Average 61% 62%



Profitability

Banks

Type of financial sector entity Number of staffChange in number

and %

26,237

Professionals of the Financial Sector 14,732

Management Companies

Source: CSSF Annual Report 13

3,253

3001.1 %

20.0%

52019.0%

The number of staff employed by Luxembourg banks fell by 300 persons to 26.237 at the end of 2013. Another 14.732 staff are employed by Professionals of the Financial Sector and 3.253 staff by Management Companies. Management Companies continued to grow in numbers and in substance.

Development in number of staff

Source:CSSF

Number of Employees as per year end Rank 2013 Rank 2012 Rank 2011

BGL BNP Paribas 1 2,792 1 2,798 1 2,774

Banque Internationale à Luxembourg 2 1,868 2 1,899 2 1,802

Banque et Caisse d'Epargne de l'Etat, Luxembourg 3 1,797 3 1,787 3 1,786

RBC Investor Services Bank 4 1,472 4 1,626 4 1,576

KBL European Private Bankers 5 951 5 979 5 1,023



DZ Privatbank 8 810 9 781 10 760

ING Luxembourg 9 791 8 793 8 785

Banque de Luxembourg 10 744 10 749 9 762

The table below shows the top 10 banks in terms of staff.

Interviewsr

e

er

er

ort

o

re

e

rer

o

rt

o



Deutsche Bank Luxembourg

“ “ The financial sector is the linchpin of our modern industrial society. This given fact entails a special accountability for us as financial players.

BIO

Title: e e t e fi er

Company: Deutsche Bank Luxembourg

Website: ttp o

e o rLocation:

Kirchberg

TAGS

Develop Connect Client-centric Private Bank Protect Positive

International Loans Expanding UHNWI

Funding lines Luxembourg Improved image Low corruption

Free-trading nation Expertise on site Responsibilities to

stakeholder Society

> What is the Deutsche Bank Group’s vision and how is this translated on a national level for Luxembourg?

e t e ro p re o tte to e e e t e -tr o er t o te t t e te t t o r o r

e to e e o tr fi er or e o r e o t ree pr p e rote t o e t e e op

e pr p e rote t e e rep t t o r repre e t t e e ore t e re tor e pr p e e e op o t e ot er t or e t p e e t ro t e fi-

e t t e

or ere e o r t e e o pr p e o e t o p rt r port e t e rt er e t e te r t o oor t o

o o r ere t e e t t e e o r e e t e e o r e t e t e t e o t e o r

ppe e ppe e et e e t o e re e er tro pre e e t e o tr e o e to rt er ter o o r e e t t e

> What is the outlook for the Deutsche Bank Group Luxembourg in the coming years?

er po t e o t t e t re o t e ro p e o r et e t mention two reasons - amongst a multitude - for this optimism:

The positive trend for our Asset Management Division that we saw in 2013 o t e to t e t re ee t e et o o o

2013 was a very successful year – and such increases show no sign of t t e oo

DB Luxembourg’s International Loans business – already a center of com-petence within the Deutsche Bank Group worldwide – is still continuously e p e te fi t o o o r r r t o t t e t e t months has gathered pace and stands out as a good example of how we re o t t e e op

> In the world of Private Banking, competition is fierce. How should Luxembourg position itself to ensure that it continues to thrive?t t e r te e tor o e t t e o r t re

lies in becoming the Eurozone centre for ultra high net worth individuals N et er or or er e rete port o o e e t

or t e e e N ro o er t e or fi fir t e to eet t e r ee t t e e t e ro p e o r

e o r re pro e pport to et er o er er e e e t t o or to

er e ot er fie o t t ere t e ro p e o r t t e o po t o o ot et -

er e po t o e or t e t re

Banks based in Luxembourg will also play a larger role in providing fund- e or t e o tr

r or Liedtke


> Do you think that the end of banking secrecy will aid or impede the industry in securing its future suc-cess?e t o e to t e tro t o o t e to t

e e o or t o tro e e e t t t e o e o po t e e e t o t e o tr

Luxembourg’s now renewed commitment to having a state governed by the rule of law will make interaction

t ot er o tr e to er e er oe without even mentioning the advantages – for both the fi ot er tr e e o r r ro pro e e re t o t e o

> Speaking of Luxembourg’s advantages, what is it that sets the Grand-Duchy apart from other coun-tries?

or e t e e o r fi e tre o er t e ideal prerequisites for remaining successful in the long term:

r t orr pt o o er o e e t -cording to Transparency International’s Corruptions

er ept o e orr pt o e o r o e o t e o e t t e or r po t o o countries and hence comfortably ahead of Germany

r e

e o e o r ee ree tr t o e t te ter r et t e o tr

has traditionally opened up to other markets outside t e o tr o t e to o o

r t e fi e tre fi t e e pert e t ee o te e er t o e o r e -

pe t e e o r oo o e e t e rro re o e re e te pp o

e t t

t t ot e t or e r o t e e o r t te ee e t o pet t e r tr t re

t o te t o e to t t e e o r reeport o er fi t o t o -

t e t e t re

> Trust in banks is still being rebuilt after the financial crisis. How does Deutsche Bank Group Luxembourg engage with society and its stakeholders?

Financial services providers are key for any mod-er e o o e fi e tor t e p o o r o er tr o et e t e t

pe o t t or fi p er Conducting business responsibly means serving the interests and meeting the needs of all of our stakehold-

er e t re o er e p o ee o et t r e e e e e e tro e t

the DB Group level underpin our approach to corporate re po t e efi e o e oper te o r

e e o o t e per or e e t e tr t p e p rt er p o t o

o e te r t

> For the Deutsche Bank Group Luxembourg, how exactly does this work in practice?

or o r re o er o e tor e o t e re t e o er oo re t e t o e e r er e re o to rt er o r e- e t t e e o r e e op e t o

e ee t e o te t o fi o r re po t e to t e o er

t re r to o r e t e rr o o er t e fir t e pert e e t e e t

et e e t ter t o o o r t o er e t o te t o

e to e t o o r e p t or or e t e e t e ro e o t t e o

o t

e t o e to o et pro e t t e t e Bank Group Luxembourg voice will actively contrib-ute to ongoing debates - in close cooperation with t e t o t e e ere

e o r or e t o oo e o r orpor te t e e o t e

o et to o et r t o ert e o r r t or r te rt r er

Deutsche Bank Group Luxembourg will carry on enrich- t e t r e o t e o tr

re po t e t o e t o r e -p o ee o pport e p o ee p r e pro e -

o opport t e t o r or e reer o t p e t e r oreo er

with our trainee program we enable numerous young peop e e er e r to t e t e r fir t tep t e or -

or e e t re t e o r e p o ee training because we are convinced that this is a win-win situation for both of us – for Deutsche Bank Group

e o r t e e p o ee t e e e



rche amily ffice and rche ealth Management

“ “ There’ll be a shake-up of the market with banks moving to specialise and break up their integrated service model

BIO

Title: e e t e fi er

Company: r e fi e r e e t e e t

Website: ttp r e o fi e o

Location: Kirchberg

TAGS

ulti amily ffice Orchestra Conductor Coordinate Independence Inducements Commission

Challenge MiFID II Performance-related

fees Transparent pricing

model Luxembourg Trust Wealth Management

North America Depositary Bank Open Platform Negotiate

fees Experience

> To which type of family office - single, multi or “red carpet” banking services - does Arche Family Office’s (AFO) business model best corre-spond?

e t fir er t e t o fi e er e e e t o e t e er e et ee o e t ore e er e

t e r o e o fi e ere t o e t e p o t ee t e o er e e pro e

e ee o r e e o or o er ee e t t ro e t e e ot o t e e r t e port o o t o e r e or o rt

er t e o t o o o e oor te o er ee o r e t e t t o o t oo e e te pe fi er e to o r p rt er

er er rer fir o re pe t t e r fie e or e tr o tor o r ro e to oor te t e r o er e

pro er to fi o r o er o e o ot t ro t o o r e t t e t to t e e re t ere to te t o o r e e e o tor o tro o e o o r e t e o

re t o p o tr t t t e e t r epe e e or t e o ept to or t ere e o o t o tere t

> Independence and transparency are also high on the agenda for regula-tors. What do you believe the impact of a move towards greater inde-pendence and transparency will be?

There’ll be a shake-up of the market with banks moving to specialise and re p t e r te r te er e o e to er ore epe e t

e tr r e o t e to o er t e e t re r e o er e t e o o e o e o pe t o ro t e o r o e er e t ee o pe e e e ppe r

leaving the way clear for new highly specialised smaller structures as niche p er

r to ee t re tr t o o e e t re or e t e pro oo rope e t ro e re e t e

re t o o o p ete tr p re e e o e ere retro e -sions formed an important part of bankers’ earnings could become more o p te

> How do you think that restrictions on inducements will play out in the long term?

or pr te er e pro t o e o t r p rt t t e t t e e t re per tte t t t t e e t e re o

retro e o to t e er o e e e ore p r t o e ere o o et p e o to t e e t o ee t t t er-e ort p or e e t per or e ee o -

e e t re e e o e e e e e t e ore tr p re t pr o e

or o fi t e e e fi t po t o tr e-e e t t t e e t re t o t e o to e r e e r oo epe e e to e t t e t e t e o e

in a positive direction towards providing added value through performance epe e e

r r Otto


> Do Family Offices have a role to play in securing Luxembourg’s future as a financial centre?e pro e t e o r t t t o t ere

re ro ere t e e o re e e e ere et t e o tr er o e tr -or t o ee e pet to prope t or r

fi e e t e re t o e e re r t t top o p r p pro er o er-ee e t t e e re po t o to e e -o po er to e o r

> Last May, Arche opened a second structure, Arche Wealth Management (AWM). How did this come about and how does this new structure fit in with the Family Office? o t ter ope t e fi e e ere

ppro e N t er et t o ort -e et to e e e e e t t re re

fi e er e t ere tere te r e t e r e t e po te e e o r ro e

fi e to oor te o er ee ot to e e p te t t e re e t ept o

e re e t ere re ppet te or t e e t re t e e e to p r e t e tter e

the CSSF for an asset manager license and started a e o p r e e t e e t

e t e o r e te e ro fi t t r e t e e t e er e N

t t e r o fi e to e or et e e t p rpo e

e er e e t re ere t e e t o e t r fi e oe t e o r e t

e e t r o e re t t t ere o e o o t o tere t e e t e r t t e

t e e r e r e t e t o tr t re re oper t t ere t e e t te

> Due to the high minimum investment requirements, the alternative space is often inaccessible for inves-tors in the €1m to €25m segment you described. Does the Family Office model allow you to give your clients access?

o te e poo e t o e to et er to e them access to investments which would otherwise be o t o t e r re ter o pro er e e e to exclude all fund of funds and concentrate on invest-ments where we’re knowledgeable and fully understand t e e e t

t t e ter t e p e r te t re e re oo to pro e o e e p rt ere t

company renowned in this area with whom we have an e e e t re t o p to o er t e e t et or t e N e e t

> How do you react if a new client wishes to use a pro-vider with whom you have no existing relationship? e r e o e e e ot te t t t o -

al tariffs with the dozen Luxembourg banks that ap-pro e t t e t e o r e t e efit ro t e e pr e o e e t ere to o e t

t t t t o o r oo e o e ter to discussions with them so as to negotiate in the interest o o r e t t pro e e Not re o e

e to o t te e t t e fi e o to e e pro t ee to t e

> Thinking about the future of Arche, where do you see yourself in 3 years?

r t t port t to t t o r tr te to ro te t t t e t ere o e t o o o

abroad: Luxembourg is a great location in the heart of rope t e epo t r e ee e e e t ope or tr t r e eer r e ro er

t e pert er er t ere to o er r e o er e o o t e to ro e ee etter service offering for Private Equity and senior staff mem-

er t t e to e e t e o e

e re o oo to o o e o o r e er-e t tor r er fi t o r e t e er have sizable part of their assets in dollars - in European banks but possibly held by sub-custodians in North

er e re o e t port t to e -to Nort er o e oo e pp t tep p rt er t to The bank we picked has a similar philosophy to ours on o r et er t e ope p t or e-e t o t e e t et er Nort er

e re rre t p tt to et er ree e t t t e r e e t e e t e to t e er

the bank’s excellent structuring and also its custodian er e o e t t o r e t e

o t Nort er e e r t rt er er fi t o



Lombard Odier

“ “ Partnering up with Lombard doesn’t mean sleeping with the enemy … it has become less of a taboo to partner up and share various functions.

BIO

Title: Managing Director

Company: Lombard Odier

Website: ttp o r o er o

eLocation:

Glacis

TAGS

Sound IT system Business Process

Outsourcing Regulation waterfall Teaming up

Performance Mutualise Custody Trade-off Asset

Management Mobile platform

Luxembourg Size will matter n ationary cost Bright future Consolidation

> Let’s begin with the Lombard model. You are a strong believer in cen-tralising the back office, IT and execution. What made you want to go in this direction and what are the advantages of this approach?

Many clients and many in the banking industry underestimate the impor-t e o o e er o e o te t e pro e o

t fi e t or t o o r o tro et t e t e o r o r r o t to o t t t e or t o p e r te

re e or o to o tro t e t t o

t o r er ee t t e e rt o o r pr or t e or e e e decided not to buy private banking software packages but to build our own o t o t t per e t fit o r ee e e o o et e e t

we need a fully integrated system that can handle all the aspects related to t t t ot te t t t or et e e t ot er

t t e t t e e t e

e oo t o r o fi e e e t o er e profit e tre e p to efi e t e r t pr or t e er o r ter

e ter e t

> In this context, Lombard has taken the bold step of opening up certain functions to other banks, so essentially competitors. How do you ex-plain your success in attracting other firms to your platform?

The reason we’ve seen partners migrating to our platform is that they ee e t e o e e t t t e re te p t fir t t

to develop IT for its own purposes and decided to concentrate on asset e e t re re t e t e e o o r o e

epe o t e re t o t e ter t o e o o e p t e p t or pop r t e oper te o tr e or e o r

fi e te ter or r t o o t e er or o r p rt er to oper te fi e tres around the world having an IT

te t t te r te o p r eter

o e er p rt er p t o r er oe t e eep t t e e e eop e e t to re o e o o r o t e

et t o r o pet tor r re po e t t t o r to or t o e t e e e per or e p r ot e e o o e t e e t t e or t per or e poor e t

e e t e o e e o t oo to p rt er p re r o t o

> What parts of their business do companies generally outsource to Lombard? Is there any function that you advise them to keep in-house?

There’s no straight answer to this question as it depends entirely on the e t e o t o r e e er t o fi e e o fi e

ro er e t t e re t o te o e ere t e e o t o t to or e p e pr te te to o e to ere t t t o e tor o te pre er t r p rt to o e t to

o t e o fi e t e e e ere ot er p o ot ot e t o o po o e p rt r o t o t r t er fi fi

tere t propo t o or ot p rt er t t e e o t e t e ore you mutualise t e ore o e fi e o e er e t -ture partners have to make their own decisions about the trade-off in terms

Carl Verbrugge


o o tro t t re t ro o t o r e part of the equation which is addressed by both parties is the question of personnel and the impact outsourcing

t e o o r t

> Since the financial crisis, have you seen a change in trends in terms of those looking to outsource?

t efi te e o e or et er which is of course linked to one of the main challeng-e or ot t e tr re t o

t e e t t t e re t o ter o to r

The move to regulate can obviously be explained by regulators wanting to monitor the activities of the

tr e pe prote t t e o er waterfall will come upon us and we will have to cope

t t e e e re t o o from Europe that we have yet to even hear of … all will re re re po e ro e e to absorb both implementation and recurring costs and

e e t o e t o to e fi t e t o e o e to re r t

peop e to o tor r re tor e ot -er pe t o t e r e t e e t e re o t o re t o e p e o to t e e t t

to e p or o to e e e e and will inevitably mean that size will matter in the

tr o or r or o e to opt o e

> When you say that size-matters, what kind of mod-els do you think will run into difficulties?

Smaller institutions might not be able to face these challenges and implement the measures needed to o er o e t e re t e t ee o e o o -

t o pr te o e to e t t e r p t or to eep p t t e e t ot e ret t t t e ore re t o o e t e ore o r to pt t t p er tr e to

or t e o t o t e e e

> Are there any other areas where you believe that further investment will be required?

e ro re t o o t t te o o or the mobile part of the business will also need invest-

e t Ne e er t o re o t t ro ere t p t or t t o e pre erre o er

pre o e er t o t t e e oo or with their future banks is an ability to communicate

ere t r o t ro t e tr t o model where you have to visit your banker in person to

o r port o o or e t e t ee t e e-t o e or o o t o o p ete

mobile platform will allow them to consult and interact t t e t e t e or e o e t

o tter ere t e re e re t o t o e e ere t oe t o pp or t or

ot er er e pro er e

> You mentioned a new generation of clients. What kind of needs will these clients have and do banks have the right skills to cater for them?

Clients’ needs will be more international as new gener-ations are – as I said - much more mobile than previous o e t e r e t e fi t ore o

t re e t e t p e re e e pro a need for multiple booking centre or fi e

t e o o to e t t e r port o o o if they want to be a true player in the Private Banking

re ee to e e to ter or t o o er jurisdictions on the same level as your home country is

o to e fi t Ne ert e e t e or t o N pro e et ee e te fi e tres

t e or ere o ee to e e per e e I don’t think it’s doable to have in-depth knowledge of

t e pote t o tr e o r e t t e o need to have a network of trusted providers to help you

e er proper o t o

> Do you see international niche players as the next generation of winners in Private Banking?

I think that independent companies like ours will have r t t re e o t r t t ot e o to e

ter t o e p er t e e o e to per or er e fi e t er e e e re t line with the performance of your client’s investment

o t o o t e t e e r primary goal is to make sure our clients have invest-ment performances that are in line with their expec-t t o or etter o o t o ee to e o r organization focus on the performance for its clients

t e t o er e e t t re pe t t -fi t or o eo e e o e e ro e t to e insurance products in the morning and asset manage-

e t t e ter oo



Credit Suisse and ABBL

“ “ The era where you had one person servicing a client is dead and gone: you need to be able to bring experts together around the table.

BIO

Title: e e t e fi er r

Company: re t e e o r

Bankers’ Association (ABBL)Website:

re t e o e

Location: Kirchberg

TAGS

Fully Compliant HNWI ABBL Private Bank Different skillset Wealth

structuring Fund solutions Proactive Ever-evolving

technology Transparent world

Luxembourg Compete with onshore

Wealth Management Manage cost base EU passport Internal

development Growth

> The banking business model is being disrupted by regulation, tax and technological changes. As head of ABBL, do you agree with this state-ment?

t er t r pte e ore e to t t t e o e ee e p te e o r o e er ot o e t p rt o e -

er ore o p e o e o e tor e o r e t er ee o er t re or t t e Eurozone – so the banking union with the Single Supervisory Mechanism

t e e e o t o e e t or p t o e er t t e e pport t e e o e to r o e t e te e re po t e o re t t ett o fi e e t e fi - r et

t o t e o e to r t tr p re e t o e t e o r r te o e o e t o to

oo e o o t e r e t e ro e t t t o p t t re t o er e o e pro ote ore pro -

t e

> What do Luxembourg banks have to focus on to survive in the new environment?

Luxembourg’s value proposition will continue to attract businesses to e o r e e tr p re t or e o p e e er t

ro pro t tr t r p t e t e p port t e o and stable economic environment – with our AAA rating – to the Banking e tor er t r ro e t tr t r to pro o -

t o e tre r orpor te ret pr te e ee to o o t e e tre t t o p t e o r o t e e fi-e t

There is also an expectation for banks to go digital: it’s essential for the tr to e e op p t re ter e p o t e o o e -

er e o o t t o er e to etter er e o r e t o t e to e o or t o Ne e er t o o e t

o t t ee e ro t e r o fi e t o e tr e ere t e or re t ppe e t fi t e t e t

> A new generation of HNW customers have different expectations of their banker and the way they interact and buy services. What are you seeing in practice with your bank’s customers?

There has been a trend in the market whereby Private Banks are focusing o N o e re t e e o er e or e t

e to e e op ere t et or e p e t to e trepre-e r re re eep er t o t e r e e e ee

re r ore er e o p e t t o e o e t e t o to tr t re e t er t e or e o o o te

re e t o e e o orpor te t to o e e te t e t e t e e t e ere o o e per o servicing a client is dead and gone: you need to be able to bring experts to et er ro t e t e

e Maas

https://www.credit-suisse.com/lu/en/%20


tr p re t or e re o o pet t o o ore ro e t o e o tr e t becoming more and more important to take this into

o t e oo t o e er e o r e t or re t e t e er ee ett p r e ert o tr e o to et e e o er to

o r to er

> Do Family Offices have a role to play in securing Luxembourg’s future as a financial centre?

The country is undergoing a huge transformation and ee e pet to prope t or r fi e o e o e e e e t t e re t o e

> Luxembourg bankers are becoming more proactive in travelling the world to find new clients. In your role as head of ABBL, which regions or countries do you believe have the most potential for selling the comparative advantages of Luxembourg compared to other private banking jurisdictions? (ABBL)

o t t t t e ope to pe fi re o t e o er ro to t o

o e er t t rope o tr e t repre-sent good opportunities for Luxembourg and that the

r pe fi t e e t e o tr p rt r ttr t e to N N e tor t

o e t e er t o t e e tor e t structuring and fund solutions which make us attractive or o e tor e t e p rt o t e

rope o e e e efit ro t e passport – is also a key advantage compared to other fi e t oe t ere ppe to pr te e t but also banks who choose to establish their European oper t o e o r

> In terms of your search for talent, what kind of pro-files is your bank recruiting to prepare for tomorrow? Is it difficult to find such talent in Luxembourg? ere re t o e to t top e t o e e ore t t e e t e t pe o e t e re ee e

re re profi e t ro er r e o t t e e ter e e op e t ert fi t o

programs in place for our existing client-facing employ-ee to e p t e re e o e e e per-t e or t t port t ttr t e profi e re r t

r re r t e t o er e e o tr to o -p e e t o r te r o e pert e ro

e t o e o tr e to e p er e e t o t e ro

> How was Credit Suisse’s performance in 2013? Credit Suisse Luxembourg had a really successful 2013

ter o e p o r r e e re -stantially in terms of Assets under Management and

e to rt er e e op o r p t or e ter rope or e p e e e e t e t o e

or r e ort ree e

e t o e to o r o t oo t e e r t re e p to o t e o t e p t rt o o r tr te to p t e o r o t e p ro re t e per pe t e e re er o fi e t

t o or r e re o o N e t t pre e t e e e t o e efit t e o t

from us being based in Luxembourg: the solutions of-ere ere pro e e e e t fit or t e r ee

> Thinking about Luxembourg as a financial centre, would you say that you’re optimistic for the future? opt t e r t to t t

e o r t o t t t t t te revised its forecast for employment and now predicts stability over the next two to three years as opposed to

e e ee t t e e t e e er o peop e or e o r t pro -ere t e tor o t ere t e fi e tre o t t r e t e re e t t r e e t

e er e tr or e

Bank CEO Agenda

Arc

hive

s Lu

xem

burg

er W

ort /

Ano

uk A

nton

y




e t p e t e r t e o o e re- ere o er o er t e tr e t e e o r to

e o e to o e e e o er e t ret o tr te pote t e to oper t o e e pe or t e

t et e re t ee o o t o t e repo t o o banks within international groups and – in certain cases – banks disappear-

e t re ro e o r et t e e o e ere e e r to e re t e t re or t e fi e tre

ro e t o r e e e o e o r t re e ee ro t o e ro o e per pe t e t e o re et to re o t e or -o e er re e re t o

come alongside an extension of the scope of the exchange of tax informa-t o re t ee o t r e t tere t r o -

o

e e ro ere t e o e t t pre er t e t re e to oo r ter e r t e e e o or t o e o r

t o t e t o e re e t e or to pro ote t e o tr p tro t e e o e e re ter

t to e o r t ter t o ro p

There is much cause to be optimistic:

• Most banks are currently moving to compliance and are already start- to pt t e r e o e

• e o e e e t e et er e e t e efie e pe -t t o o e re t e t

• e ee e e tr t to t e r et ot o e e t o ere t oper t o e p e t t t t o o er-

cial banks and other banking licenses are in the pipeline

• e e re er tro t e efit ro t

o ee e t re e er or e o r o e er e re pp ore t tt e t o o r pre t o po t e tre o t e to r pe e re re to e t re -e e t e fi p e e o r ee e to pt t e eep t r t port t or r et e e e o fi e t t t e o t e to o e o t o top

Introduction from Stanislas Chambourdon

Projecting ourselves beyond 2014, Luxembourg’s future can be seen from two angles

BIOTitle:

e o Company:

KPMG LuxembourgWebsite:

pLocation:

Bertrange

TAGSBanking Secrecy

Choices Luxembourg Strategy Operating Models Consolidation Repositioning Sustainable future Regulations

Exchange of information MiFID II

Promote Greater visibility

Assets under management EU passport Internal development

Growth

Stanislas Chambourdon



Megatrends

Megatrends shaping the CEO Roadmap

e or e e or r p r e -er o eep roote or e e tre e e ee tr t e e

tre o er t e pote t p t o or t e tr

> What are some of the megatrends shaping the future of the industry?

> What will a customer look like in 2030?

Profile e to e e t e e t re ere t o tr e t ere t ee o po t e o o tt t e e t e

income patterns

Needs e to re e t e r e e o e e e t t t e tr to e ore e t t e r e t e t port o o

Wants and expectations: likely to expect their private bankers to under-t t e etter to tre t t e pe to pro e t ore o t o

fit t e r ee e re e to re e e to tr te r t e r ore ert t t e r o er port o-o e ee ore ter t e er e o e o e t t

e to re e t t e or t o e r et o e t pe

Behaviours: likely to put increasing trust and value advice from alternative o r e peer r e o e et or

Customer needsand expectations

Demographics

Environment

Technology

Social values,behaviors and ethics

Interactive service models, 24/7 conectivity

Rapid pace oftechnological change

Increasing connectivity

Populationgrowth

Agingpopulation

Working longer

Growing economic influenceof the developing world

Increasinglife events

Increasingresource insecurity

Growth of sociallyresponsible behavior

Mountingenvironmental risks

Cyber security

Data growth

Seek advice fromtrusted networks

Importance of trust and integrity

Drive for simplicityand transparency

Growth ofsocial media

Increasing demand for personalisation /

customisation

Importance of networks and social relationships

PB to understand client’s specific needs

Security ofinvestmentsStay with

trusted brands




Implications

Implications for the wealth management industry

Value chain

• Power will continue to shift towards those who o tro t e e t re t o p

• Long term success will depend on delivering a per-sonalized and tailored customer experience clients

re e pe t e t e pe t t o re o r ro t t e e to e

• As the mix of core competencies required to deliver re e to to er strategic part-nerships with key players will be very important in service delivery while keeping costs under control

• Private banks have choices to make e er t one-stop shop approach is likely to be less suc-e e o po e t re pro e to t e

same level or better than specialist providers and the solution can be personalized to meet individual

ee e to e t e pre er e o r er t o t o o fi tre t

o ootpr t ept o e t re t o p re t o pro t e or t e re t o t e r-et e e e e t e ee to e e rer

in terms of the value they add and the markets in which they want to play and focus their respective tr te e or

Clients

• Client engagement strategies will need to be tai-lored to reflect the diversity of the customer base:

- e er t o t to te o t e tr has focused on the management of wealth accu-

te oo er ot too o e er t o

- e t t t e o o e e op e t e ter o t er e o o e e t -agers need to consider how client engagement strategies need to vary to accommodate what

e fi t ere t p o op -t r re o ere e

• Customers are likely to increasingly look outside the industry to peers or like-minded individuals for investment advice o e er t ere re place for professional investment advice as cus-to er e t re p ro or er re r e pert o e e o e t t tr t re e t re tor re e e re e t o tr

• Customer expectations of and interactions with t e tr e o er o orro customer will expect 24/7 access, full transparency and the ability to review investments via a range o e e o o e te o o e

e re ot e t t t to er e t t o t t e ore ee t t e wealth managers will need to be equipped to ser-

e ore e e t t pe e o t -ing to satisfy the expectations of more convention-

e t o re t fie t ore te ter t o

• To prosper in such a radically redesigned invest-e t pe e t er ee to

er t profi e t e r e t etter t t e o o Client profiling e e oper t-ing model which can accommodate diverse client

ee e e



Implications

Products

• Outcome oriented propositions will continue to pop r t o ret r o tr t

pote t ore o t e e ro e t e t increasingly focus on target driven results as op-posed to individual investment strategies or asset

e o e e t e e e to -r fi e o e o t e p e pote t e e or

re e ert t t t t te o t o e t e e ere ere ore t e t to p e

o t o t p e e r propo t o t t e t fie o e o t e o p e t e o e

o o t e er t e t ee e e

• To deliver on performance in a low return environ-e t e t er e o te p rt o

the assets under management to more alternative investments e e re e t te pr te e t r tr t re e investing to develop new competencies in these

re et er ro peop e pro e or te per pe t e

• Product flexibility will become increasingly impor-t t e pro t port o o o t e t re

ee to e e e o t t t e e to respond to changes in personal circumstances or

e t e or to r et e ro e t e er ert

• t e tr t e t e fi er e tr t ee to e re o e e e e e t t trust-

ed brand will become an increasingly important ere t tor r tr te e ee to e te

e o tr t o r et p t t e e t e e r prote t o tr te e

ee to e p e e te

Governance

• Global wealth managers need to create an organi-zational structure which can manage the challenges created by further geographic expansion t t ongoing regulatory and client scrutiny and connect more effectively with other organisations in its

ro er et or o e re o ro p re t r o e to e fi e r

o e or t e r t t e to e e t e o e o e t e

• t tr t fi er e or t o re- fi t e o o t o ot er tr

e tor regulators and institutional investors are looking very closely at risk management frame-

or o tro e ro e t o er e rr e e t t e t t t scrutiny will

e

• There will be a growing importance of third party relationships o t o r re t o p o t -

e to e e op to p rt er p o e pro er are likely to be seen as extensions of the wealth

er or t o tr t re pre e t t o e e e o er e o er t o

o e o ee to e o e or


Markets

• Market entry strategies will need to be much more robust e t ere ro pote t rre t e er r et e e op e o o e these new markets will not match the culture and r profi e o e er e t e e t er

t e e t e re ore ept e to po t o p e re o er e o -

er ere t re tor re e t r religious belief systems and need to be assessed properly to determine market attractiveness and e tr tr te e

• e o er e r et e tr r e o factors should be considered:

• Local regulatory frameworks, tax environments and licensing arrangements: Does the local regu-latory environment actively encourage or hamper

e r et e tr t re t e e re tor ere e ro o r e t r et ootpr t

o t e e e t t e t e o po rep tr t o o profit to t e e o fi e o tr

t re t e e rr e e t re e licenses available or would an existing license need to e re

• Financial stability o t e t e o fi r et e tor re e o to

exchanges or are there investment restrictions or e r t t ee to e o ere

• Target investor base o fi ter te or op t te t e t r et pop t o

segments of the population offer the greatest pote t t o o e tor e pe t ro

e t e e t pro er t re t e pote t e et re e e poo

t o ter t o fi o te o o t ere o e tor re rre t e t e

o e t or ter t o

• Competitive environment and channels o eer e t e o r et e t fi

e t e e t pro er t re t e key channels to market and how accessible are t e e

• Foreign competitor activity e ore e t er re e tere t e re o o -

cessful have they been and how have they entered e t o or or re t ere

re tr t o o r et e tr rr e e t p rt r or ore p er

• Operating model t or t o tr t re o e e e r to eet o re re e t

t re t e r e ro t e ee or o -e e t tr t re o t te ee

to e o te e o t re t e re tr t o o tr err t ro or er

o e o o er t o e t re oper t pr t e

Kinshasa18

Lagos17

Cairo15

New York - Newark 22

Dhaka24

Beijing16

Delhi32

Kolkata23

Rio deJanero13

SaoPaulo

Slow growing Rapid growing

22BuenosAires

198020102030

14

MexicoCity22

Mumbai29

Karachi22

Lahore12Shanghai21

Istanbul13Los Angeles - Long Beach -Santa - Ana14

Manila17

Tokyo 37

Urbanization from 1980 to 2030 (populiation in millions)

The 20 largest cities in 2030



Implications

Technology

• As the pace of external change re e o oe t e ee or

e t t t e ore oper t o e Technology will need to move far higher up the agenda and more radical options will need to be consid-ered to drive the step change required to support sustainable

ro t

• A core platform and simple user interface e r t

e e e e t t ore tr -parency being sought both by customers and regulators can only be achieved via a robust core platform which can sup-

port customized and tailored propo t o e er t o -ferences alone will necessitate a platform capable of dealing with clients who will want to in-ter t ere t t ro different types of media and who expect information to be provided in a wide variety of or t

• Client profiling and effective data analytics will increasing-

t ere t tor increasing number of wealth managers are investing to har-e t r e er e t

to help inform and shape the relevance of client engagement tr te e

• Value added outsourcing e e te e

o er ero t e IT systems are no longer simply about transaction processing

er r ere is a trend towards outsourcing

ore e o fi e o fi e t o e ort to focus technology on deliver-

e e ere t t o to move the cost base to a more variable model and to enable business resources to focus on their core competency of managing wealth and client re t o p ere re o potential advantages in using outsourcing as a means to keep

Important, but not criticalMission critical Not important at allSomewhat important

Reduce operating costs

Greater exibility to scale operations

Standardize processes

Meet compliance regulatory re uiements

More effective operationsat a global level

ransform re-engineer processes

Gain access to talent

Gain access tonew technology

mprove analytical capabilities

Proven mature offerings fromservices providers

Force change into ourbusiness operations

43%

0% 100%

37%

35%

34%

33%

29%

3%

6%

5%

11%

15%

3%

6%

11%

9%

11%

5%

44% 10%

45% 12%

39% 22%

34% 21%

36% 16%

39%

46%

40%

41%

45%

43%

24%

22%

21%

20%

17%

28%

32%

27%

27%

29%

27%

How important are the following business drivers behind your company’s IT outsourcing and BPO decision making in today’s business environment

Source.HfSResearch,2013StateofOutsourcingStudywiththesupportofKPMGSharedServicesandOutsourcingAdvisory


up-to-date with the rapid pace of technological advancement and support more rapid propo-

t o e e op e t e e r-lier models focused too much on the cost agenda and found a

e e t o e t newer trend is towards broader and deeper strategic partner-

p o t o r

• As the role of technology becomes even more important

to orro or o oe the need to protect the bank against cybersecurity threats Cybersecurity is moving up the r e er t need to be part of each wealth manager’s risk management p

People

• Different skill sets will become ore r t pro e e

transactions become increas-ingly automated and as tech-nology increasingly replaces roles and value shifts towards e e t e e t e e t the core competencies wealth managers are searching for re e to o e e t

re t o p e e t communication skills and in te re t t-

te o o o o and risk management will be

re o t ter Net or o t e t re outsourcing could offer new

e to e t e e

• Societal pressures and techno-logical advancements are re-

efi tr t o patterns of work e e e p o -ment models have a number of

e efit t pre e t t e r o e e ro e p o ee

per pe t e e t e to better meet generational differences in expectations and should contribute to greater o t t e t t o

• e t er ee to spend some time to think about today’s trends and pave the way for more strategic work-force planning to occur in the

t re

Bank Rankings 2013r

e

er

er

ort

o



Overview

Overview

Bank Total Assets o

Amounts owed to customers

o

Net interest income o

Net fee and commission

income o

Profit for the financial year

o

Own funds o

Staff number

Bank 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 20121 Deutsche Bank Luxembourg S.A. 89,245 85,329 13,251 9,308 365 339 1 -32 189 251 4,750 4,643 299 306 2 Société Générale Bank & Trust 41,877 42,383 12,934 11,799 242 329 169 170 312 433 2,477 2,267 829 841 3 CACEIS Bank Luxembourg 41,424 47,649 15,600 16,541 174 222 114 120 171 208 625 414 838 848 4 Banque et Caisse d’Epargne de l’Etat, Luxembourg 40,664 40,480 25,113 24,515 391 440 90 83 208 198 3,098 2,803 1,797 1,787 5 BGL BNP Paribas 31,245 32,858 18,999 19,034 548 532 180 168 146 191 5,482 5,482 2,792 2,798 6 Banque Internationale à Luxembourg 19,496 21,306 12,247 11,283 235 224 143 139 168 31 859 877 1,868 1,899 7 UniCredit Luxembourg S.A. 17,348 19,319 2,322 2,519 151 204 17 41 129 181 1,316 1 310 186 184 8 Hypothekenbank Frankfurt International S.A. 16,681 20,471 439 507 46 61 -1 -1 -54 -30 182 136 19 31 9 Norddeutsche Landesbank Luxembourg S.A. 15,056 15,424 2,113 1,555 91 109 -11 -2 27 34 699 675 229 224

10 Société Européenne de Banque S.A. 14,646 13,997 4,071 3,347 163 155 18 25 166 134 1,240 1,178 166 202 11 DZ PRIVATBANK S.A. 13,766 15,942 5,782 5,908 92 114 135 128 45 46 740 723 810 781 12 Banque de Luxembourg S.A. 12,845 13,720 10,242 10,420 88 112 1 26 116 69 63 637 610 744 749 13 ING LUXEMBOURG S.A. 12,389 12,137 9,891 8,988 163 195 66 65 120 144 1,147 1,421 791 793 14 RBC Investor Services Bank S.A. 12,117 11,691 9,275 9,312 39 30 191 142 26 -27 841 816 1,472 1,626 15 Clearstream Banking S.A. 11,247 14,280 797 1,139 26 26 356 350 19 125 676 534 322 319 16 Deutsche Postbank International S.A. 10,583 12,950 1,738 3,731 81 94 12 15 80 85 851 842 145 161 17 UBS (Luxembourg) S.A. 9,891 9,319 8,176 7,062 18 20 124 117 40 57 500 547 438 421 18 State Street Bank Luxembourg S.A. 8,741 7,541 5,570 4,338 135 133 211 181 181 154 2,639 2 524 715 708 19 KBL European Private Bankers S.A. 8,413 8,212 0 0 53 57 88 85 35 -306 1,132 1 123 951 979 20 DekaBank Deutsche Girozentrale Luxembourg S.A. 7,645 9,376 4,227 5,773 24 38 72 79 126 162 424 424 397 411 21 J.P. Morgan Bank Luxembourg S.A. 7,340 5,343 6,527 4,589 38 31 236 208 112 76 642 596 518 559 22 Banque Raiffeisen 6,354 6,291 5,237 5,068 91 86 17 15 18 43 274 231 580 550 23 NORD/LB COVERED FINANCE BANK S.A. 6,329 7,919 693 759 6 2 0 0 0 1 77 68 0 0 24 Eurobank Private Bank Luxembourg S.A. 6,229 9,430 871 1,133 34 37 3 2 30 25 240 214 74 67 25 Banque Safra-Luxembourg S.A. 5,888 4,130 2,930 1,535 49 34 18 18 27 25 221 195 131 123 26 Banque Privée Edmond de Rothschild Europe 5,570 4,732 4,953 4,176 9 11 134 133 27 34 185 210 656 706 27 Industrial and Commercial Bank of China (Europe) S.A., en abrégé ICBC (Europe) S.A. 5,492 3,252 963 642 82 58 16 9 23 12 240 128 43 38 28 HSBC Private Bank (Luxembourg) S.A. 5,337 4,351 1,151 1,414 20 27 6 7 11 9 156 147 111 126 29 Erste Europäische Pfandbrief- und Kommunalkreditbank Aktiengesellschaft in Luxemburg 5,313 5,961 1,412 1,412 27 53 -1 -1 45 78 445 426 10 13 30 Nomura Bank (Luxembourg) S.A. 5,249 6,120 3,492 4,251 6 9 74 68 54 56 288 231 350 315 31 Crédit Suisse (Luxembourg) S.A. 5,070 4,992 3,924 3,936 15 13 59 48 -2 -2 233 184 211 190 32 UBI Banca International S.A. 4,896 4,444 1,568 1,905 20 25 10 10 -11 1 115 125 73 72 33 Crédit Agricole Luxembourg 4,827 4,917 3,419 3,413 45 60 74 60 41 103 517 468 359 343 34 Pictet & Cie (Europe) S.A. 4,526 5,066 3,399 3,802 9 5 145 117 87 38 224 207 268 246 35 Nordea Bank S.A. 4,504 4,543 3,823 3,807 43 29 100 78 52 47 330 308 313 305 36 MEDIOBANCA INTERNATIONAL (LUXEMBOURG) S.A. 4,290 5,511 1,051 717 16 21 7 12 15 28 231 203 5 6 37 Landesbank Berlin International S.A. 4,230 4,538 0 0 32 51 0 0 22 22 190 168 43 45 38 PayPal (Europe) S.à r.l. et Cie, S.C.A. 3,774 2,950 189 159 137 83 115 67 72 28 1,491 1,078 52 48 39 Hypo Pfandbrief Bank International S.A. 3,610 4,120 1,555 1,585 7 13 0 0 0 7 154 147 14 14 40 Banque LBLux S.A. 3,606 4,476 1,680 1,657 58 48 19 18 -46 16 376 416 183 191 41 UniCredit International Bank (Luxembourg) SA 3,188 3,031 1,144 879 11 12 0 0 5 6 244 237 17 17 42 Skandinaviska Enskilda Banken S.A. 3,162 3,896 2,650 2,477 21 22 30 31 25 26 171 165 180 187 43 The Bank of New York Mellon (Luxembourg) S.A. 3,100 2,886 2,758 2,526 2 4 34 29 0 0 69 70 210 201 44 Commerzbank International S.A. 3,000 3,459 1,241 1,425 16 13 34 29 21 16 347 481 127 135 45 ABN Amro Bank (Luxembourg) S.A. 2,999 2,881 2,476 2,037 24 21 19 18 6 20 205 205 142 161 46 Banque Degroof Luxembourg S.A. 2,572 2,302 1,929 1,773 22 32 69 63 59 49 206 223 289 295 47 BSI Luxembourg S.A. 2,427 1,037 2,190 634 4 7 8 7 -2 3 42 37 63 49 48 Dexia LdG Banque S.A. 2,396 3,237 0 0 -1 7 -1 -1 14 29 149 135 0 2 49 Natixis Bank 2,250 1,820 456 375 31 37 11 10 16 33 825 822 114 101 50 Banco Popolare Luxembourg S.A. 2,225 1,771 2,072 1,579 7 8 6 4 3 4 69 66 34 35 51 Banco Bradesco Europa S.A. 2,214 1,617 661 321 26 19 8 8 18 26 309 261 40 39 52 Fideuram Bank (Luxembourg) S.A. 2,049 1,518 1,847 1,390 5 11 21 20 17 21 66 62 48 51 53 Mitsubishi UFJ Global Custody S.A. 2,048 2,010 1,324 879 6 7 41 42 19 21 83 67 129 117 54 LBBW Luxemburg S.A. 1,883 2,790 262 365 6 17 -2 -1 -65 9 289 307 43 62 55 Sal. Oppenheim jr. & Cie Luxembourg S.A. 1,822 1,673 1,592 1,439 1 2 15 15 3 11 168 168 106 114

Within top 5 of category Note: N/A not published at date of print


Bank Total Assets o


o



income o


o

Own funds o

Staff number

Bank 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 20121 Deutsche Bank Luxembourg S.A. 89,245 85,329 13,251 9,308 365 339 1 -32 189 251 4,750 4,643 299 306 2 Société Générale Bank & Trust 41,877 42,383 12,934 11,799 242 329 169 170 312 433 2,477 2,267 829 841 3 CACEIS Bank Luxembourg 41,424 47,649 15,600 16,541 174 222 114 120 171 208 625 414 838 848 4 Banque et Caisse d’Epargne de l’Etat, Luxembourg 40,664 40,480 25,113 24,515 391 440 90 83 208 198 3,098 2,803 1,797 1,787 5 BGL BNP Paribas 31,245 32,858 18,999 19,034 548 532 180 168 146 191 5,482 5,482 2,792 2,798 6 Banque Internationale à Luxembourg 19,496 21,306 12,247 11,283 235 224 143 139 168 31 859 877 1,868 1,899 7 UniCredit Luxembourg S.A. 17,348 19,319 2,322 2,519 151 204 17 41 129 181 1,316 1 310 186 184 8 Hypothekenbank Frankfurt International S.A. 16,681 20,471 439 507 46 61 -1 -1 -54 -30 182 136 19 31 9 Norddeutsche Landesbank Luxembourg S.A. 15,056 15,424 2,113 1,555 91 109 -11 -2 27 34 699 675 229 224

10 Société Européenne de Banque S.A. 14,646 13,997 4,071 3,347 163 155 18 25 166 134 1,240 1,178 166 202 11 DZ PRIVATBANK S.A. 13,766 15,942 5,782 5,908 92 114 135 128 45 46 740 723 810 781 12 Banque de Luxembourg S.A. 12,845 13,720 10,242 10,420 88 112 1 26 116 69 63 637 610 744 749 13 ING LUXEMBOURG S.A. 12,389 12,137 9,891 8,988 163 195 66 65 120 144 1,147 1,421 791 793 14 RBC Investor Services Bank S.A. 12,117 11,691 9,275 9,312 39 30 191 142 26 -27 841 816 1,472 1,626 15 Clearstream Banking S.A. 11,247 14,280 797 1,139 26 26 356 350 19 125 676 534 322 319 16 Deutsche Postbank International S.A. 10,583 12,950 1,738 3,731 81 94 12 15 80 85 851 842 145 161 17 UBS (Luxembourg) S.A. 9,891 9,319 8,176 7,062 18 20 124 117 40 57 500 547 438 421 18 State Street Bank Luxembourg S.A. 8,741 7,541 5,570 4,338 135 133 211 181 181 154 2,639 2 524 715 708 19 KBL European Private Bankers S.A. 8,413 8,212 0 0 53 57 88 85 35 -306 1,132 1 123 951 979 20 DekaBank Deutsche Girozentrale Luxembourg S.A. 7,645 9,376 4,227 5,773 24 38 72 79 126 162 424 424 397 411 21 J.P. Morgan Bank Luxembourg S.A. 7,340 5,343 6,527 4,589 38 31 236 208 112 76 642 596 518 559 22 Banque Raiffeisen 6,354 6,291 5,237 5,068 91 86 17 15 18 43 274 231 580 550 23 NORD/LB COVERED FINANCE BANK S.A. 6,329 7,919 693 759 6 2 0 0 0 1 77 68 0 0 24 Eurobank Private Bank Luxembourg S.A. 6,229 9,430 871 1,133 34 37 3 2 30 25 240 214 74 67 25 Banque Safra-Luxembourg S.A. 5,888 4,130 2,930 1,535 49 34 18 18 27 25 221 195 131 123 26 Banque Privée Edmond de Rothschild Europe 5,570 4,732 4,953 4,176 9 11 134 133 27 34 185 210 656 706 27 Industrial and Commercial Bank of China (Europe) S.A., en abrégé ICBC (Europe) S.A. 5,492 3,252 963 642 82 58 16 9 23 12 240 128 43 38 28 HSBC Private Bank (Luxembourg) S.A. 5,337 4,351 1,151 1,414 20 27 6 7 11 9 156 147 111 126 29 Erste Europäische Pfandbrief- und Kommunalkreditbank Aktiengesellschaft in Luxemburg 5,313 5,961 1,412 1,412 27 53 -1 -1 45 78 445 426 10 13 30 Nomura Bank (Luxembourg) S.A. 5,249 6,120 3,492 4,251 6 9 74 68 54 56 288 231 350 315 31 Crédit Suisse (Luxembourg) S.A. 5,070 4,992 3,924 3,936 15 13 59 48 -2 -2 233 184 211 190 32 UBI Banca International S.A. 4,896 4,444 1,568 1,905 20 25 10 10 -11 1 115 125 73 72 33 Crédit Agricole Luxembourg 4,827 4,917 3,419 3,413 45 60 74 60 41 103 517 468 359 343 34 Pictet & Cie (Europe) S.A. 4,526 5,066 3,399 3,802 9 5 145 117 87 38 224 207 268 246 35 Nordea Bank S.A. 4,504 4,543 3,823 3,807 43 29 100 78 52 47 330 308 313 305 36 MEDIOBANCA INTERNATIONAL (LUXEMBOURG) S.A. 4,290 5,511 1,051 717 16 21 7 12 15 28 231 203 5 6 37 Landesbank Berlin International S.A. 4,230 4,538 0 0 32 51 0 0 22 22 190 168 43 45 38 PayPal (Europe) S.à r.l. et Cie, S.C.A. 3,774 2,950 189 159 137 83 115 67 72 28 1,491 1,078 52 48 39 Hypo Pfandbrief Bank International S.A. 3,610 4,120 1,555 1,585 7 13 0 0 0 7 154 147 14 14 40 Banque LBLux S.A. 3,606 4,476 1,680 1,657 58 48 19 18 -46 16 376 416 183 191 41 UniCredit International Bank (Luxembourg) SA 3,188 3,031 1,144 879 11 12 0 0 5 6 244 237 17 17 42 Skandinaviska Enskilda Banken S.A. 3,162 3,896 2,650 2,477 21 22 30 31 25 26 171 165 180 187 43 The Bank of New York Mellon (Luxembourg) S.A. 3,100 2,886 2,758 2,526 2 4 34 29 0 0 69 70 210 201 44 Commerzbank International S.A. 3,000 3,459 1,241 1,425 16 13 34 29 21 16 347 481 127 135 45 ABN Amro Bank (Luxembourg) S.A. 2,999 2,881 2,476 2,037 24 21 19 18 6 20 205 205 142 161 46 Banque Degroof Luxembourg S.A. 2,572 2,302 1,929 1,773 22 32 69 63 59 49 206 223 289 295 47 BSI Luxembourg S.A. 2,427 1,037 2,190 634 4 7 8 7 -2 3 42 37 63 49 48 Dexia LdG Banque S.A. 2,396 3,237 0 0 -1 7 -1 -1 14 29 149 135 0 2 49 Natixis Bank 2,250 1,820 456 375 31 37 11 10 16 33 825 822 114 101 50 Banco Popolare Luxembourg S.A. 2,225 1,771 2,072 1,579 7 8 6 4 3 4 69 66 34 35 51 Banco Bradesco Europa S.A. 2,214 1,617 661 321 26 19 8 8 18 26 309 261 40 39 52 Fideuram Bank (Luxembourg) S.A. 2,049 1,518 1,847 1,390 5 11 21 20 17 21 66 62 48 51 53 Mitsubishi UFJ Global Custody S.A. 2,048 2,010 1,324 879 6 7 41 42 19 21 83 67 129 117 54 LBBW Luxemburg S.A. 1,883 2,790 262 365 6 17 -2 -1 -65 9 289 307 43 62 55 Sal. Oppenheim jr. & Cie Luxembourg S.A. 1,822 1,673 1,592 1,439 1 2 15 15 3 11 168 168 106 114

Source:DatafromLuxemburgerWortorfiguresmadeavailablebybanks



Overview

Bank Total Assets o


o



income o


o

Own funds o

Staff number

Bank 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 201256 RBS Global Banking (Luxembourg) S.A. 1,820 1,435 1,741 1,360 4 3 15 14 6 5 62 57 50 53 57 John Deere Bank S.A. 1,775 1,719 0 0 67 66 1 1 33 31 215 189 61 60 58 DNB Luxembourg S.A. 1,739 1,044 1,054 519 8 6 4 3 5 3 39 25 30 28 59 VP Bank (Luxembourg) S.A. 1,433 1,069 1,004 524 6 9 11 10 0 11 120 115 110 79 60 Danske Bank International S.A. 1,409 1,404 675 694 17 15 17 15 16 14 131 131 91 99 61 Mizuho Trust & Banking (Luxembourg) SA 1,334 1,412 295 340 1 1 20 17 -2 -3 53 78 122 114 62 Société Nationale de Crédit et d’Investissement 1,312 1,273 34 34 5 7 0 -1 38 46 1,212 1,166 12 11 63 Compagnie de Banque Privée Quilvest S.A., en abrégé CBP Quilvest S.A. 1,234 1,174 1,133 978 8 8 21 16 5 4 49 51 105 97 64 M.M. Warburg & CO Luxembourg S.A. 1,212 1,177 1,134 1 096 5 10 15 13 4 7 33 28 128 112 65 EFG Bank (Luxembourg) S.A. 1,136 989 670 N/A 6 5 0 22 7 9 50 43 83 82 66 East West United Bank S.A. 1,132 1,207 273 184 19 18 2 1 11 9 92 44 51 39 67 HSH Nordbank Securities S.A. 1,030 1,745 28 36 4 6 4 5 14 10 164 154 84 108 68 Union Bancaire Privée (Europe) S.A. 875 830 685 649 1 1 25 18 13 6 102 97 33 42 69 Bank of China (Luxembourg) S.A. 856 527 441 293 15 6 4 9 3 3 217 214 20 26 70 Svenska Handelsbanken S.A. 777 1,000 715 846 6 7 6 7 1 1 53 52 53 60 71 Advanzia Bank S.A. 733 635 653 571 72 54 5 4 21 13 50 44 79 69 72 Credem International (Lux) 715 1,005 387 757 1 2 22 28 15 21 115 102 25 25 73 SMBC Nikko Bank (Luxembourg) S.A. 705 964 555 814 2 2 11 11 5 6 122 116 86 84 74 Banque Havilland S.A. 627 516 330 215 8 10 4 3 0 6 111 110 51 53 75 Banque BCP S.A. 625 605 196 178 8 8 4 4 1 1 30 25 71 67 76 BHF-BANK International 544 586 171 181 4 9 1 1 0 0 47 47 31 31 77 Banca Popolare dell’Emilia Romagna (Europe) International S.A. 542 657 422 479 3 4 2 2 2 3 45 42 17 15 78 Bank Leumi (Luxembourg) S.A. 529 473 312 397 5 6 5 5 3 4 31 27 31 28 79 Cornèr Banque (Luxembourg) S.A. 521 633 185 222 2 2 3 3 0 1 48 47 23 21 80 HSBC Trinkaus & Burkhardt (International) S.A. 449 2,121 283 1,922 15 28 14 19 -22 19 86 104 128 172 81 Delen Private Bank Luxembourg S.A. 402 560 287 446 1 1 48 39 38 32 30 25 45 46 82 Andbank Luxembourg 394 382 87 98 4 4 4 1 1 -1 50 17 38 27 83 Banque Carnegie Luxembourg S.A. 384 351 336 308 4 4 8 7 5 4 24 24 40 41 84 TD Bank International S.A. 377 409 349 380 3 4 5 5 0 1 27 26 39 44 85 Banque de Patrimoines Privés 314 244 265 219 2 2 8 4 4 1 24 15 36 29 86 Banque Transatlantique Luxembourg S.A. 294 307 177 190 2 2 8 5 2 1 20 20 29 29 87 Sumitomo Mitsui Trust Bank (Luxembourg) S.A. 260 297 0 0 1 1 5 5 1 2 31 31 19 20 88 Fortuna Banque s.c. 233 228 220 215 3 2 0 0 0 0 11 11 18 20 89 China Construction Bank (Europe) S.A. 208 N/A 0 N/A 0 N/A 0 N/A -1 N/A 199 N/A 18 N/A90 Frankfurter Volksbank International S.A. 192 203 157 167 2 2 0 0 0 1 33 33 7 7 91 Keytrade Bank Luxembourg S.A. 188 167 172 150 2 2 3 2 3 3 13 12 10 9 92 Banco Itaú Europa Luxembourg S.A. 165 477 8 179 1 6 3 24 0 15 139 183 19 38 93 HSBC Securities Services (Luxembourg) S.A. 160 154 91 95 0 0 27 32 -16 -11 46 39 250 264 94 Europäische Genossenschaftsbank S.A. - European Cooperative Bank S.A. - Banque Coopérative Européenne S.A. 155 91 0 0 0 0 0 0 0 0 12 12 5 5 95 Banque Puilaetco Dewaay Luxembourg S.A. 150 110 128 91 0 0 12 11 4 4 15 11 28 27 96 La Française AM Private Bank 145 77 48 48 1 1 0 3 0 -2 20 10 26 27 97 Banque Hapoalim (Luxembourg) S.A. 98 26 1 1 0 0 0 0 -1 -1 9 12 21 21 98 Van Lanschot Bankiers (Luxembourg) S.A. 87 49 32 25 1 1 0 1 -1 -4 17 18 12 15 99 Argentabank Luxembourg S.A. 75 222 2 1 1 4 2 2 1 1 17 16 22 21

100 Freie Internationale Sparkasse S.A. 60 46 40 28 N/A 1 2 2 1 1 N/A 12 16 16 101 Brown Brothers Harriman (Luxembourg) S.C.A. 53 72 0 0 0 0 88 77 28 18 23 22 363 401 102 ABLV Bank Luxembourg S.A. 36 18 19 0 0 0 0 0 -3 -2 15 18 13 5 103 GPB International S.A. 20 N/A N/A N/A N/A N/A N/A N/A -1 N/A 19 N/A 9 N/A104 Société Générale LDG N/A 1 053 N/A 0 N/A 3 N/A 0 N/A 2 N/A 77 3 3 105 Lombard Odier (Europe) S.A. N/A 555 N/A 461 N/A 0 N/A 9 N/A 0 N/A 21 22 11 106 Catella Bank S.A. N/A 261 N/A 212 N/A 3 N/A 11 N/A -4 N/A 37 110 66 107 Banque Öhman S.A. N/A 123 N/A 102 N/A 1 N/A 8 N/A 2 N/A 9 30 29 108 BEMO EUROPE - BANQUE PRIVEE N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 9 N/A109 Société Générale Financing and Distribution N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 5 N/A

Within top 5 of category Note: N/A not published at date of print


Bank Total Assets o


o



income o


o

Own funds o

Staff number

Bank 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 201256 RBS Global Banking (Luxembourg) S.A. 1,820 1,435 1,741 1,360 4 3 15 14 6 5 62 57 50 53 57 John Deere Bank S.A. 1,775 1,719 0 0 67 66 1 1 33 31 215 189 61 60 58 DNB Luxembourg S.A. 1,739 1,044 1,054 519 8 6 4 3 5 3 39 25 30 28 59 VP Bank (Luxembourg) S.A. 1,433 1,069 1,004 524 6 9 11 10 0 11 120 115 110 79 60 Danske Bank International S.A. 1,409 1,404 675 694 17 15 17 15 16 14 131 131 91 99 61 Mizuho Trust & Banking (Luxembourg) SA 1,334 1,412 295 340 1 1 20 17 -2 -3 53 78 122 114 62 Société Nationale de Crédit et d’Investissement 1,312 1,273 34 34 5 7 0 -1 38 46 1,212 1,166 12 11 63 Compagnie de Banque Privée Quilvest S.A., en abrégé CBP Quilvest S.A. 1,234 1,174 1,133 978 8 8 21 16 5 4 49 51 105 97 64 M.M. Warburg & CO Luxembourg S.A. 1,212 1,177 1,134 1 096 5 10 15 13 4 7 33 28 128 112 65 EFG Bank (Luxembourg) S.A. 1,136 989 670 N/A 6 5 0 22 7 9 50 43 83 82 66 East West United Bank S.A. 1,132 1,207 273 184 19 18 2 1 11 9 92 44 51 39 67 HSH Nordbank Securities S.A. 1,030 1,745 28 36 4 6 4 5 14 10 164 154 84 108 68 Union Bancaire Privée (Europe) S.A. 875 830 685 649 1 1 25 18 13 6 102 97 33 42 69 Bank of China (Luxembourg) S.A. 856 527 441 293 15 6 4 9 3 3 217 214 20 26 70 Svenska Handelsbanken S.A. 777 1,000 715 846 6 7 6 7 1 1 53 52 53 60 71 Advanzia Bank S.A. 733 635 653 571 72 54 5 4 21 13 50 44 79 69 72 Credem International (Lux) 715 1,005 387 757 1 2 22 28 15 21 115 102 25 25 73 SMBC Nikko Bank (Luxembourg) S.A. 705 964 555 814 2 2 11 11 5 6 122 116 86 84 74 Banque Havilland S.A. 627 516 330 215 8 10 4 3 0 6 111 110 51 53 75 Banque BCP S.A. 625 605 196 178 8 8 4 4 1 1 30 25 71 67 76 BHF-BANK International 544 586 171 181 4 9 1 1 0 0 47 47 31 31 77 Banca Popolare dell’Emilia Romagna (Europe) International S.A. 542 657 422 479 3 4 2 2 2 3 45 42 17 15 78 Bank Leumi (Luxembourg) S.A. 529 473 312 397 5 6 5 5 3 4 31 27 31 28 79 Cornèr Banque (Luxembourg) S.A. 521 633 185 222 2 2 3 3 0 1 48 47 23 21 80 HSBC Trinkaus & Burkhardt (International) S.A. 449 2,121 283 1,922 15 28 14 19 -22 19 86 104 128 172 81 Delen Private Bank Luxembourg S.A. 402 560 287 446 1 1 48 39 38 32 30 25 45 46 82 Andbank Luxembourg 394 382 87 98 4 4 4 1 1 -1 50 17 38 27 83 Banque Carnegie Luxembourg S.A. 384 351 336 308 4 4 8 7 5 4 24 24 40 41 84 TD Bank International S.A. 377 409 349 380 3 4 5 5 0 1 27 26 39 44 85 Banque de Patrimoines Privés 314 244 265 219 2 2 8 4 4 1 24 15 36 29 86 Banque Transatlantique Luxembourg S.A. 294 307 177 190 2 2 8 5 2 1 20 20 29 29 87 Sumitomo Mitsui Trust Bank (Luxembourg) S.A. 260 297 0 0 1 1 5 5 1 2 31 31 19 20 88 Fortuna Banque s.c. 233 228 220 215 3 2 0 0 0 0 11 11 18 20 89 China Construction Bank (Europe) S.A. 208 N/A 0 N/A 0 N/A 0 N/A -1 N/A 199 N/A 18 N/A90 Frankfurter Volksbank International S.A. 192 203 157 167 2 2 0 0 0 1 33 33 7 7 91 Keytrade Bank Luxembourg S.A. 188 167 172 150 2 2 3 2 3 3 13 12 10 9 92 Banco Itaú Europa Luxembourg S.A. 165 477 8 179 1 6 3 24 0 15 139 183 19 38 93 HSBC Securities Services (Luxembourg) S.A. 160 154 91 95 0 0 27 32 -16 -11 46 39 250 264 94 Europäische Genossenschaftsbank S.A. - European Cooperative Bank S.A. - Banque Coopérative Européenne S.A. 155 91 0 0 0 0 0 0 0 0 12 12 5 5 95 Banque Puilaetco Dewaay Luxembourg S.A. 150 110 128 91 0 0 12 11 4 4 15 11 28 27 96 La Française AM Private Bank 145 77 48 48 1 1 0 3 0 -2 20 10 26 27 97 Banque Hapoalim (Luxembourg) S.A. 98 26 1 1 0 0 0 0 -1 -1 9 12 21 21 98 Van Lanschot Bankiers (Luxembourg) S.A. 87 49 32 25 1 1 0 1 -1 -4 17 18 12 15 99 Argentabank Luxembourg S.A. 75 222 2 1 1 4 2 2 1 1 17 16 22 21

100 Freie Internationale Sparkasse S.A. 60 46 40 28 N/A 1 2 2 1 1 N/A 12 16 16 101 Brown Brothers Harriman (Luxembourg) S.C.A. 53 72 0 0 0 0 88 77 28 18 23 22 363 401 102 ABLV Bank Luxembourg S.A. 36 18 19 0 0 0 0 0 -3 -2 15 18 13 5 103 GPB International S.A. 20 N/A N/A N/A N/A N/A N/A N/A -1 N/A 19 N/A 9 N/A104 Société Générale LDG N/A 1 053 N/A 0 N/A 3 N/A 0 N/A 2 N/A 77 3 3 105 Lombard Odier (Europe) S.A. N/A 555 N/A 461 N/A 0 N/A 9 N/A 0 N/A 21 22 11 106 Catella Bank S.A. N/A 261 N/A 212 N/A 3 N/A 11 N/A -4 N/A 37 110 66 107 Banque Öhman S.A. N/A 123 N/A 102 N/A 1 N/A 8 N/A 2 N/A 9 30 29 108 BEMO EUROPE - BANQUE PRIVEE N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 9 N/A109 Société Générale Financing and Distribution N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 5 N/A

Source:DatafromLuxemburgerWortorfiguresmadeavailablebybanks

6868 Luxembourg Banks Insights 2014Luxembourg Banks Insights 2014

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Partenaire �nancier privilégié des entreprises et des particuliers au Luxembourg, le Groupe BNP Paribas accompagne ses clients en leur proposant la gamme de produits et services la plus large pour répondre à leurs besoins. Avec près de 4.000 collaborateurs au Luxembourg, le Groupe se positionne en tant que premier employeur du secteur �nancier et comme deuxième plus grand employeur du secteur privé luxembourgeois.

Le Groupe BNP Paribas est présent au Luxembourg à travers BGL BNP Paribas et plusieurs autres entités :

• Fondée en 1919, BGL BNP Paribas se positionne parmi les plus grandes banques du Grand-Duché de Luxembourg et propose à ses clients particuliers, professionnels, banque privée, PME et grandes entreprises une gamme de produits particulièrement large.

• BNP Paribas Securities Services propose une expertise reconnue de longue date et un savoir-faire unique dans l’administration et la conservation des fonds, les émissions obligataires internationales et leur ingénierie respective.

• BNP Paribas Investment Partners offre une gamme complète de services de gestion �nancière aux clients institutionnels et aux distributeurs à travers le monde.

• BNP Paribas Real Estate accompagne ses clients entreprises, institutionnels, investisseurs et particuliers à chaque étape du cycle de vie de leur immobilier.

• Cardif Lux Vie propose une gamme de produits et services sur trois lignes d’activité complémentaires : le Wealth Management sur le marché international, l’assurance Retail (via le réseau d’agences de BGL BNP Paribas) et l’assurance Entreprises.

• BNP Paribas Factor offre des solutions de protection, de gestion et de pré�nancement du poste clients des entreprises permet-tant à celles-ci d’obtenir un �nancement court terme alternatif et de se concentrer sur leurs activités.

• Arval offre des services de leasing opérationnel exclusivement aux sociétés en mettant en œuvre des solutions qui simpli�ent et optimisent la gestion de la mobilité automobile de ses clients.

• BNP Paribas Leasing Solutions est leader sur le marché local du leasing �nancier et offre des solutions attractives de �nance-ment d’équipements à la clientèle professionnelle.

Grâce à la diversité de ses activités et au professionnalisme de ses équipes, le Groupe contribue activement au développement de la place �nancière et du secteur bancaire luxembourgeois. En 2014, BGL BNP Paribas a été désignée « Best Private Bank au Luxembourg » par Euromoney, pour la 3e fois en 5 ans. La banque détient par ailleurs le label d’Entreprise Socialement Responsable de l’INDR (Institut National pour le Développement Durable et la Responsabilité Sociale des Entreprises).

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