Banque Internationale à Luxembourg (BIL) and KBL European Private Bankers (KBL epb) have signed two agreements regarding their private banking operations in Switzerland and Belgium.

BIL (Suisse) SA, which operates from Geneva, Lugano and Zurich, will acquire KBL (Switzerland), as part of the group’s focus on major international private banking hubs.

The second agreement between the private banks is Puilaetco Dewaay, the Belgian affiliate of KBL epb, acquiring the recently launched private banking business of BIL Belgique.

In November 2014, PBI has reported Puilaetco Dewaay had acquired UBS operations in Belgium. After the deal, Puilaetco Dewaay holds more than €10bn in AuM and serve nearly 10,000 clients.

The transactions, which are subject to regulatory approvals, are expected to close by the end of the first half of 2015. Though the terms of the transactions were not disclosed, the banks said negotiations were carried out on an "arm’s-length" basis.

The move from KBL epb comes as the firm continues to "actively review additional acquisition opportunities in the bank’s core markets".
Yves Stein, Group CEO of KBL epb, said:" "In line with our long-term growth strategy, first announced in early 2013, we remain committed to operating in those markets across our existing footprint where we have the critical mass required to ensure sustainable growth and profitability."

As KBL epb’s presence in Switzerland is not "at such scale", Stein said the bank is "pleased to seize the opportunity with BIL to merge these two operations".

Hugues Delcourt, CEO of BIL Group, added: "Private banking is changing, and these new dynamics create significant opportunities for us to grow and better support our clients. We already have an international footprint and the range of capabilities that individuals and their advisors seek. This transaction means we can offer greater scale, resources and services to our clients in Switzerland."

BIL has recently opened its first branch in the Dubai International Financial Centre (DIFC) to service ultra-wealthy investors after closing down its operations in Bahrain.