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Credit Suisse Trades Top Holders Lose 1 Billion Investments


(Bloomberg) —

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Credit Suisse Group AG’s top shareholder has seen the value of its investment plummet by around $1 billion in just a few months, making it one of the biggest losers in the story. The point is that UBS Group AG agreed to buy back the struggling lender.

According to Bloomberg calculations, the National Bank of Saudi Arabia’s 9.9 percent stake in Credit Suisse is currently valued at around 304 million Swiss francs ($329 million) following the UBS offer. The Riyadh-based lender invested 1.4 billion Swiss francs in Credit Suisse late last year.

Since then, shares of Saudi National Bank have fallen about a third, taking more than $25 billion off its market value. Shares were down 2% at the open in Riyadh on Monday.

In an earlier statement on Monday, the lender said the changes in the valuation of the investment in Credit Suisse had “no impact” on its growth plans and 2023 guidance. The bank’s total assets exceed 945 billion riyals ($251 billion).

Speaking in an interview with Bloomberg TV last week, National Bank of Saudi Arabia President Ammar Al Khudairy said “absolutely not” when asked if they would be willing to invest more in Credit Suisse. if there is a call for additional liquidity.

Shares of the Swiss bank fell to their lowest levels on record and its credit spreads sharply increased following his comments. That helped drag all European banks lower as investors shied away from risk following the collapse of three US lenders.

On Sunday, UBS agreed to pay 3 billion francs to Credit Suisse in an all-share agreement that includes extensive government guarantees and liquidity provisions. Price per share marks a 99% drop from Credit Suisse’s peak in 2007.

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