Ammar Al-Khudairi, Chairman of the Board of Directors of the National Bank of Saudi Arabia, announced that the bank has no desire to enter the Board of Directors of Credit Suisse or interfere in its decisions, and the exit may be studied in 2024 or 2025, but it will not be before 2024.
Al-Khudairi said in an interview with Al-Arabiya TV that investing in Credit Suisse is tactical, not strategic. Where the bank set investments in Credit Suisse at 9.9%, and this percentage will not be raised.
The Chairman of the Board of Directors of the National Bank of Saudi Arabia revealed the amount invested in Credit Suisse, saying: It is less than $1.4 billion, which is equivalent to 2% of our investment portfolio.
He explained that Credit Suisse aims to implement a plan to sell some assets and reduce the number of employees, and this plan will be implemented within two years, and with its positive implementation, Credit Suisse's assessment will rise and then we may think about exit.
Al-Khudairi pointed out that the increase in the Saudi National Bank's stake in Credit Suisse will result in accounting and legislative requirements and new controls on the buying and selling of shares.
The head of the National Bank of Saudi Arabia said our investment in Credit Suisse will not change our strategy as a bank.
He explained that the Saudi National Bank's loan portfolio exceeded $120 billion.
On October 26, 2022, the National Bank of Saudi Arabia revealed its intention to contribute to a financial investment in the Credit Suisse Group, amounting to $1.5 billion, representing up to 9.9%.
A statement by the bank, of which Al-Arabiya.net obtained a copy, explained the financial impact of the investment, as it indicated that this investment in Credit Suisse is part of the total investment portfolio of the National Bank of Saudi Arabia, which amounts to 68.7 billion dollars, and therefore this partnership will constitute 2.2% of the total initial investment. The National Bank of Saudi Arabia, 3.5% of the total shareholders' equity and 0.6% of the total consolidated assets.