After the unsuccessful search for shareholders to replace the current cooperative structure between Beirut and London, the future is darkening for Fortuna, the smallest of Luxembourg’s banks. While the 2021 financial year shows a profit of €7.8m, without the sale of the two historic buildings that house the bank in 2021 for €15.4m, the loss would have reached €7.6m.
It is the third year of losses in a row. Over three years, the cumulative losses have reached €10m.
The end of the cooperative society, whose shareholding has progressively shrunk to a few people, is near.
As of 12 March 2021--the last update date--the register of beneficial owners (RBE) showed nine main shareholders representing 35.4% of the capital. In alphabetical order Fernand Boden (0.18%), Patrick Losch (6.52%), André Poorters (0.21%), Paul Retter (4.18%), Carlo Rock (8.82%), Charles Wagener (0.73%), André Wilwert (9.99%) and Jacques Wolter (4.77%).
Wilwert, Poorters, Retter and Losch make up the board of directors.
“The bank plans to sell the majority of its assets and clients during 2022,” reads the report on the audit of the annual accounts conducted by PwC Luxembourg. The report states that “this potential project indicates the existence of a significant uncertainty that may cast significant doubt on the bank’s ability to continue as a going concern.”
The annual report states that the bank has entered into discussions with local players for the sale of its business. “Discussions are currently underway”; although the discussions do not seem to be making any major progress at the moment. Fortuna indicates that the bank has “sufficient equity to continue its activities if the sale of the business does not materialise.”
€180m in outstanding loans
What remains to be sold once the real estate is sold? The business is based almost entirely on the mortgage lending business. In the latest annual report, outstanding loans amount to €180m, or 11.56% less than in 2020. This was a voluntary reduction “while waiting for its new strategic direction to be defined”.
On the governance side, , former director general, has taken up a new position at the Luxembourg Bankers’ Association (ABBL). The other director, Mike Felten, who was appointed to this position in April 2015, at the same time as Grbic, indicated on 30 April on LinkedIn that he had stepped down. Jean-Louis Camuzat, already chief compliance and data protection, has taken over these functions.
The rumour now is not so much a takeover as a straightforward liquidation.
Fortuna Banque declined to comment for this article.
Originally published in French by and translated for Delano