Saudi National Bank will not increase stake in Credit Suisse after shares drop
Credit Suisse’s financial struggles follow the collapse of Silicon Valley Bank and could likewise have ramifications for the Middle East.
The head of Saudi Arabia’s largest bank said on Wednesday that it will not inject more money into the struggling Credit Suisse.
“Absolutely not, for many reasons,” Saudi National Bank chairman Ammar Al Khudairy told Bloomberg.
Background: Saudi National Bank (SNB AlAhli) acquired a 9.8% stake in Credit Suisse last October for around $1.5 billion. Based in Zurich, Credit Suisse is one of the largest investment banks in the world. Saudi National Bank, for its part, is the largest commercial bank in the kingdom.
On Tuesday, the bank said that it found material weaknesses in its financial reporting over the past two years, according to multiple reports. On Wednesday, Credit Suisse’s shares fell more than 20% to a record low on NASDAQ as of 1 p.m. ET, according to market data.
