(MENAFN- Trend News Agency) Saudi National Bank, the largest shareholder in Credit Suisse
before the bank's rescue earlier this month, on Monday named a new
chairman after the lender suffered significant losses on its
investment, trend reports with reference to reuters .
CEO Saeed Mohammed Al Ghamdi will take over as the new chairman
from Ammar Al Khudairy, who resigned for personal reasons, the bank
said. Deputy CEO Talal Ahmed Al Khereiji takes over as acting chief
executive, a bourse statement said.
All changes are effective March 27, and come nearly two weeks
after Al Khudairy said the kingdom's biggest bank by assets would
not buy more shares in Credit Suisse on regulatory grounds.
The remarks were seen as a trigger to a further sell-off in the
Swiss bank's shares and exacerbated a crisis of confidence in the
lender that had already seen clients pull more than $110 billion in
the last three months of 2022.
Combined with global jitters in the banking sector and an
already weakened share price, Al Khudairy's comments contributed to
Credit Suisse losing a fifth of its value, which eventually forced
it into a takeover by its domestic rival UBS for $3.2 billion.
Saudi National Bank, which acquired almost 9.9% of Credit Suisse
for 5.5 billion riyals ($1.46 billion) last November, has itself
lost more than $26 billion in market value since Oct. 27 after
committing to the investment.
By last week, it was sitting on a loss of more than $1 billion
but said on March 20 that the drop in its investment's value had no
impact on its growth plans and would not affect profitability.
Al Khudairy also told Reuters earlier this month that the bank
was not looking at any international acquisitions presently, and
instead focused on its Saudi business.
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