BGL BNP Paribas
Encyclopedia
BGL BNP Paribas is a Luxembourg
bank founded on 29 September 1919. Since May 2009, the bank has been a member of the BNP Paribas
group. It is one of the largest banks in the Grand Duchy of Luxembourg and is the country's second-largest employer.
together with Luxembourg and Belgian partners. Its registered office was in Arlon, Belgium, and its head office in Luxembourg City. It quickly moved into to new premises at 14, rue Aldringen. By 1928, it had become a large regional bank extending its operations to the neighbouring areas of Belgium and France. In 1935, its registered office was moved to Luxembourg where BGL became a Luxembourg corporation. In the 1960s, BGL became a key player in international financial services with cross-border transactions accounting for an increasing share of its operations. In the late 1970s, it entered the Eurobond market, opening offices in Milan, Hong Kong and Frankfurt and establishing Banque Générale du Luxembourg (Suisse) in Zurich in 1982. On 29 November 1984, BGL shares were first traded on the Luxembourg Stock Exchange
.
By 1999, BGL was acting as a commercial bank for its Luxembourg customers as well as an investment bank offering financial services to the international community. In February 2000, BGL and its majority shareholder Fortis
formed a strategic partnership under which Fortis acquired over 97% of the bank's equity. In 2005, the bank changed its name to Fortis Bank Luxembourg. In 2008, the State of Luxembourg acquired 49.9% of the bank's shares and, in September 2008, invested EUR 2.5 billion in Fortis Bank Luxembourg. The following month, the Belgian and Luxembourg governments, in association with BNP Paribas, consolidated the Fortis business structures in Belgium and Luxembourg. In December, the State of Luxembourg became a 49.9% shareholder and changed the name of the bank to BGL. In May 2009, BNP Paribas became the majority shareholder (65.96%) in BGL, the State of Luxembourg retaining 34%. On 21 September, the bank's registered name was changed to BGL BNP Paribas and in February 2010, BGL BNP Paribas became the 100% owner of BNP Paribas Luxembourg. The transfer was finalised on 1 October 2010 with the incorporation of BNP Paribas Luxembourg's business in the operational platforms of BGL BNP Paribas.
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
bank founded on 29 September 1919. Since May 2009, the bank has been a member of the BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
group. It is one of the largest banks in the Grand Duchy of Luxembourg and is the country's second-largest employer.
History
The Banque Générale du Luxembourg (BGL) was founded on 29 September 1919 by Société Générale de BelgiqueSociété Générale de Belgique
The Société Générale de Belgique was one of the largest companies that ever existed in Belgium. It was founded in 1822 by William I, and existed until 2003, when its then sole shareholder, Suez Lyonnaise des Eaux, merged it with Tractebel to form Suez-Tractebel.-History:As part of the terms of the...
together with Luxembourg and Belgian partners. Its registered office was in Arlon, Belgium, and its head office in Luxembourg City. It quickly moved into to new premises at 14, rue Aldringen. By 1928, it had become a large regional bank extending its operations to the neighbouring areas of Belgium and France. In 1935, its registered office was moved to Luxembourg where BGL became a Luxembourg corporation. In the 1960s, BGL became a key player in international financial services with cross-border transactions accounting for an increasing share of its operations. In the late 1970s, it entered the Eurobond market, opening offices in Milan, Hong Kong and Frankfurt and establishing Banque Générale du Luxembourg (Suisse) in Zurich in 1982. On 29 November 1984, BGL shares were first traded on the Luxembourg Stock Exchange
Luxembourg Stock Exchange
The Luxembourg Stock Exchange is a stock exchange based in Luxembourg City, in southern Luxembourg.The Exchange is located on avenue de la Porte-Neuve,...
.
By 1999, BGL was acting as a commercial bank for its Luxembourg customers as well as an investment bank offering financial services to the international community. In February 2000, BGL and its majority shareholder Fortis
Fortis (finance)
Fortis N.V./S.A. was a company active in insurance, banking and investment management. In 2007 it was the 20th largest business in the world by revenue but after encountering severe problems in the financial crisis of 2008, most of the company was sold in parts, with only insurance activities...
formed a strategic partnership under which Fortis acquired over 97% of the bank's equity. In 2005, the bank changed its name to Fortis Bank Luxembourg. In 2008, the State of Luxembourg acquired 49.9% of the bank's shares and, in September 2008, invested EUR 2.5 billion in Fortis Bank Luxembourg. The following month, the Belgian and Luxembourg governments, in association with BNP Paribas, consolidated the Fortis business structures in Belgium and Luxembourg. In December, the State of Luxembourg became a 49.9% shareholder and changed the name of the bank to BGL. In May 2009, BNP Paribas became the majority shareholder (65.96%) in BGL, the State of Luxembourg retaining 34%. On 21 September, the bank's registered name was changed to BGL BNP Paribas and in February 2010, BGL BNP Paribas became the 100% owner of BNP Paribas Luxembourg. The transfer was finalised on 1 October 2010 with the incorporation of BNP Paribas Luxembourg's business in the operational platforms of BGL BNP Paribas.
Recent performance
The bank reported positive financial performance for the first six months of 2011 with a consolidated net profit of EUR 207.6 million and net banking income of EUR 400 million. Comparisons with the same period in 2010 were however difficult to make, given the integration of the bank into the BNP Paribas group.Second-largest employer
As of 1 January 2011, BGL BNP Paribas is Luxembourg's second-largest employer with 4,110 staff, behind ArcelorMittal with 6,070.See also
- BGL Luxembourg Open, a Luxembourg tennis tournament organised by the bank since 1991.