Banque Internationale à Luxembourg (BIL) is closing its Hong Kong office as part of a strategic reorganization of its wealth management operations. This decision marks a significant withdrawal from a key Asian financial hub, with the bank aiming to strengthen its focus on wealth management activities in Europe.
The move comes as a surprise, particularly given BIL's ownership by China's Legend Holdings. The bank has reportedly struggled with profitability in Hong Kong amid a challenging economic environment. While BIL has primarily operated its wealth management activities from Switzerland, it has also faced reorganizations and cost-cutting measures in that region in recent years.
The bank is now shifting its focus towards corporate finance and services for entrepreneurs in Switzerland, supported by a stable balance sheet from its parent company in Luxembourg.