The business will close its Luxembourg activities at the end of 2020, according to information given to RTL. The parent company has confirmed the closure will occur as part of a restructure.
At present, Schwäbisch Hall employs 25 people in the Grand Duchy. Employees will be offered an alternative role as part of the group, which counts 57,000 clients in Luxembourg.
The company offers its customers a type of mortgage which combines a classic mortgage solution with a home savings contract. Nothing should change for current customers, but in future, they will be directly supported by the German parent company.
The advantage of this type of loan is that the interest and the amount saved can be tax deducted and can be guaranteed by a fixed rate. Schwäbisch Hall Luxembourg has an agreement with the Raiffeisen banks, BGL BNP Paribas, ING and with the Foyer group. The company would have celebrated their 30th anniversary in Luxembourg in January 2021.
Schwäbisch Hall is currently, alongside BHW and Wüstenrot, one of the three housing savings banks in Luxembourg. No details have been provided so far on the future of its staff or what will happen to the 4.6 billion euros in deposits.
