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Following the merger of Swiss lenders Credit Suisse and UBS Group, Saudi National Bank, the biggest shareholder of Credit Suisse, will hold approximately a 0.5% interest in UBS Group. Prior to the acquisition, the Riyadh-based bank owned about 9.88% of Credit Suisse and is currently 37% owned by Saudi Arabia's sovereign wealth fund.
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Saudi National Bank announced on Monday that it had exceeded expectations for its first-quarter results. However, it also reported a significant decrease in its investment of 1.4 billion francs ($1.6 billion) in Credit Suisse, with a decline of around 20% by the end of 2022 and an additional 70% in the first three months of this year. As a result, the carrying value of the investment was 1.3 billion riyals ($346.6 million) as of the end of March.
Why it matters
In March, UBS agreed to acquire Credit Suisse following a significant decline in the latter's share price and client withdrawals, which brought the bank close to collapse after years of scandals and losses. Shortly after making comments to Bloomberg TV that contributed to the decline in the stock and bonds of Saudi National Bank, its former Chairman, Ammar Al Khudairy, resigned. This slump ultimately led to the Swiss government stepping in and organizing the takeover.
