Hong Kong-listed Legend Holdings, the main shareholder of computer maker Lenovo, is apparently looking to sell its stake of roughly 90 percent in Banque Internationale à Luxembourg (BIL).

The «Financial Times» reported the plans on Sunday (article behind paywall). Goldman Sachs is running the process, according to the British financial daily. There has been no official confirmation, and neither BIL in Luxembourg nor the investment bank would comment.

Suitors From Europe and the Middle East

First bids are expected toward the end of September, according to the «FT», and the group could be valued at 2.5 billion euros ($2.9 billion) or more.

Institutions from Europe and the Middle East have shown interest, the newspaper said. The talks are at an early stage, however, and a deal is far from certain. Some bidders may also be interested in only parts of BIL.

Legend bought the bank from Qatari investors in 2017 at a valuation of 1.6 billion euros. The Luxembourg state holds the remaining 10 percent. BIL is the oldest private bank still operating in the Grand Duchy.

A Sentence That Raises Eyebrows

The reference to possible partial sales in particular is likely to be read closely in Zurich. BIL Suisse, with offices in Zurich, Geneva, and Lugano, is a wholly owned subsidiary of the Luxembourg bank.

With client assets of just under 4 billion Swiss francs ($5 billion), however, it is only a small building block within the group. BIL Group managed about 50 billion euros at the end of 2025.

The sale plans are not entirely new. First reports of a possible divestment surfaced as early as March 2025, as Luxembourg business magazine «Paperjam» recalls (French only).

Since November 2025, Legend has been led by Yu Hao, who hails from the world of artificial intelligence. The bank no longer features in his technology vision, «Paperjam» wrote back in May.

From Denial to Silence

Asked by finews.com, BIL Suisse kept its cards close to its chest. «In line with our communications policy, we do not comment on market rumors, speculation, or discussions relating to our shareholders,» said head of communications Stephan Storchenegger. The focus remains firmly on providing reliable service to clients, he added.

Just over a year ago, the bank's response was far more emphatic. In August 2025, it rejected reports of sale talks, telling finews.com there were no ongoing discussions about selling BIL Suisse. CEO Hans-Peter Borgh dismissed them as «nothing but rumors» (finews.com reported).

At the time, word in M&A circles was that a large Liechtenstein firm was in talks to buy the Swiss private bank, or even BIL's entire wealth management arm.

Client Money Heads for the Exit

How is the Swiss unit faring? finews.com analyzed its annual reports for 2021 through 2025. After three years of net new money inflows of more than 300 million francs each, the picture has reversed.

Net outflows reached 571 million francs in 2024 and a further 483 million in 2025. Assets under management fell from 4.38 billion francs at the end of 2023 to 3.97 billion at the end of 2025.

Assets under management at BIL Suisse, in millions of Swiss francs (Chart: finews.ch, source: BIL Suisse annual reports)

In its annual report, the bank attributes the decline to an ongoing realignment of client portfolios and negative currency effects.

One detail in the company profile stands out. In 2023, BIL Suisse still pointed to a network with a presence in Beijing and Hong Kong, while the latest report mentions only Beijing. That is consistent with the group having closed its wealth management office in Hong Kong.

Back in the Black on Lower Costs

Earnings have see-sawed for years. After a loss of 7.9 million francs in 2021, the bank returned to the black in 2022, followed by a profit of 14 million francs in 2023 (finews.ch reported, article in German). Profit dwindled to 0.2 million francs in 2024 before recovering to 6.3 million in 2025.

Last year's rebound did not come from the revenue side, however. Two factors drove it in almost equal measure: provisions for credit losses fell from 5.3 million to 0.4 million francs, and general and administrative expenses dropped by 4.1 million francs, or 24 percent.

Operating result and net profit of BIL Suisse, in millions of Swiss francs (Chart: finews.ch, source: BIL Suisse annual reports)

A Cost Cut With a Caveat

The bulk of the savings came from other operating expenses, which are not broken down further and fell from 7 million to 3.9 million francs. IT costs declined by 0.9 million francs.

In its annual report, the bank cites a streamlining of its IT infrastructure and more efficient management of its transformation portfolio. Staff was spared: personnel expenses rose slightly, and headcount held steady at 116 full-time positions.

Over a longer period, the finding looks less impressive. In 2024, general and administrative expenses had jumped because of IT investments. Total operating expenses of 45.7 million francs in 2025 were in fact slightly above the 2023 level.

The cost-income ratio improved to 84.7 percent, from 97.5 percent a year earlier. Asked by finews.com, the bank declined to specify what the savings consisted of.

Cost-income ratio in percent, and operating income and operating expenses in millions of Swiss francs (Chart: finews.ch, source: BIL Suisse annual reports)

Rather Meager Returns

So far, the Swiss business has hardly paid off for its owners.

Based on average equity of 147 million francs, BIL Suisse posted a return on equity of 4.3 percent in 2025. The figure stood at 10.2 percent in 2023 and a mere 0.2 percent in 2024.

Over the past five years, profits add up to 16.7 million francs, against paid-in capital of 137 million. That translates into an average of 2.4 percent a year.

The bank paid no dividend during that period. Retained earnings carried forward on the balance sheet amounted to 7 million francs at the end of 2025.

A Thick Capital Cushion

Returns are also weighed down by lavish capitalization. The common equity tier 1 (CET1) ratio stood at 35.5 percent at the end of 2025. Eligible capital of 148 million francs exceeds the regulatory target of about 44 million by more than three times.

For a buyer, that is a double-edged finding: a solid cushion, but a business that struggles to earn an adequate return on it.

Finma Will Have Its Say

A change of ownership in Luxembourg would also be a matter for the Swiss regulator. BIL Suisse is classified as a foreign-controlled bank.

Under the Swiss Banking Act, when the foreign holders of qualifying participations in such a bank change, it must once again obtain an additional license from the Swiss Financial Market Supervisory Authority (Finma).

Since Legend Holdings holds an indirect qualifying participation in BIL Suisse through the Luxembourg parent, a sale of the group would likely trigger this requirement. In addition, any buyer must notify Finma in advance if it acquires a direct or indirect qualifying participation in a bank.

Little Appetite for Foreign Investors

The situation would be different if the Swiss subsidiary were sold separately to a domestic institution. In that case, the additional license for foreign control would no longer be needed.

The notification requirement and the vetting of the new owners would remain in place, however, as would the review of new board members and senior executives.

Finma has recently signaled, for instance in the case of digital bank Radicant, that it is not particularly keen to give foreign bidders access to a Swiss banking license.

If the parent Banque Internationale à Luxembourg were sold in its entirety and the buyer were cleared by Luxembourg's regulator, the Commission de Surveillance du Secteur Financier (CSSF), and by the European Central Bank's banking supervision, Finma would likely follow suit.

Should the buyer wish to sell off BIL Suisse separately, however, M&A circles consider it a foregone conclusion that, given Finma's preferences, only an existing Swiss bank would stand a chance.