Credit Suisse's largest shareholder suffered a loss of around 80 percent on its investment. However, Saudi National Bank intends to stick to its broader strategy.
Saudi National Bank (SNB), the largest shareholder of Credit Suisse, confirmed to «CNBC» on Monday it had suffered a loss of around 80 percent on its investment.
The Riyadh, Saudi Arabia-based bank had a 9.9 percent stake in Credit Suisse when it invested 1.4 billion francs ($1.5 billion) at 3.82 francs per share in the Swiss bank in November. As part of the deal brokered Sunday, UBS will pay Credit Suisse shareholders 0.76 francs per share.
No Impact
Despite the loss, the SNB is sticking to its broader strategy. «As (of) December 2022, SNB’s investment in Credit Suisse constituted less than 0.5 percent of SNB’s total Assets, and circa 1.7 percent of SNB’s investments portfolio,» the SNB said in a statement, according to «CNBC.»
There is no impact on profitability from a regulatory capital perspective, the bank added, and «changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans and forward-looking 2023 guidance,» according to the statement.
Chairman's Comments
Ironically it was comments from SNB's Chairman Ammar Al Khudiary last week that ignited the initial selloff in Credit Suisse stock.
