SNB not able to increase investments in Credit Suisse on regulatory reasons: Chairman

SNB Chairman Ammar Alkhudairy

Saudi National Bank (SNB) is not able to increase its investments in Credit Suisse Group AG due to regulatory repercussions if its stake exceeds 10%, said SNB Chairman Ammar Alkhudairy.

On the sidelines of the Financial Sector Conference (FSC), Alkhudairy said he does not believe that Credit Suisse needs more funds.

Credit Suisse took serious steps in its restructuring plan, the Chairman said, adding that if the bank succeeds in its restructuring, the stock price will be very cheap.

Commenting on exposure to distressed banks, Alkhudairy said neither SNB nor any bank in Saudi Arabia has such exposure as Saudi banks usually deal with major banks in Wall Street.

In October 2022, SNB said it is committed to participating in the capital raise announced by Credit Suisse.

The bank added it will invest up to CHF 1.5 billion (SAR 5.7 billion) in the group to hold a stake of up to 9.9% through a private placement of non-pre-emptive shares by Credit Suisse, according to data compiled by Argaam.