Banque Internationale à Luxembourg (BIL) is closing its Hong Kong office as part of a strategic reorganization of its wealth management operations.
The decision aims to strengthen the bank's focus on wealth management activities in Europe, with services for Chinese clients now being directed through its centers in Luxembourg and Switzerland.
The representative office in Beijing will continue to operate.
This move comes as a surprise given BIL's ownership by the Chinese group Legend Holdings, which was expected to provide a robust business network in the region.
However, the bank has faced challenges in achieving profitability in Hong Kong amid a difficult economic landscape.
In Switzerland, BIL is also undergoing changes, promoting corporate finance and business with entrepreneurs while implementing reorganizations and cost-saving measures.
The bank maintains a strong balance sheet supported by its parent company in Luxembourg, positioning itself for future growth in the European market.