Saudi National Bank Loses Over $1 Billion After UBS’s takeover of Credit Suisse


The largest shareholder in Credit Suisse, Saudi National Bank, has seen a loss of about 80% on its investment. In a deal mediated by the Swiss government, rival Credit Suisse, which went under over the weekend, was bought out by UBS Group AG, Switzerland’s largest banking group, for just over $3.25 billion, or 60% less than its share price. At Friday’s closing price of 1.86 Swiss francs, Credit Suisse was valued at $8.7 billion.

9% of the Swiss bank is owned by the Saudi National Bank, which is based in Riyadh. In November 2022, it made an investment of 1 point 4 billion Swiss francs ($1 point 5 billion), or 3 point 82 francs per share.

Under the terms of the agreement, UBS will pay the shareholders 0.76 francs for each share of Credit Suisse it acquires for $3.25 billion. This implies that Saudi National Bank will likely lose $1.22 billion, or about 80% of its investment.

Read | China’s Xi in Russia: Have West’s efforts to isolate Moscow fallen short?

Saudi National Bank, according to a CNBC report, claimed that there was “nil impact on profitability” from a “regulatory capital perspective” in an official statement.

Less than 0 point 5% of SNB’s total assets were invested in Credit Suisse as of December 2022, and c. 1.7 percent of SNB’s investment portfolio,” the statement said.    .

From a “regulatory capital perspective,” there was “nil impact on profitability. ”

The statement continued, “Changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans and forward-looking 2023 guidance.

The Qatar Investment Authority, Credit Suisse’s second-largest shareholder, owns a 6.8% stake in the bank but has not disclosed any financial losses. .

Despite its efforts to recover from its significant losses and deal with a number of issues, Credit Suisse was unable to restore the confidence of investors.




Sulaiman keeps an important eye on domestic and international politics while he has mastered history.

Leave a Reply

Your email address will not be published. Required fields are marked *