DUBAI: Saudi National Bank’s growth strategy will be unaffected by the reduced valuation on its investment in Credit Suisse after the Swiss bank was taken over by domestic rival UBS on Sunday.
The Saudi Arabian lender, the kingdom’s largest bank by assets, acquired almost 10% of Credit Suisse for 5.5 billion riyals ($1.46 billion) last November and is among the largest shareholders in the troubled Swiss bank.
“Changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans and forward looking 2023 guidance,” Saudi National Bank said in a bourse filing on Monday.
Swiss authorities had announced on Sunday that UBS would acquire its rival for $3.23 billion as part of a wider state-backed rescue plan. Saudi National Bank’s statement added that the potential impact to its capital adequacy ratio is about 35 basis points, with no impact on profitability.
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Investment in Credit Suisse formed less than 0.5% of the Saudi lender’s total assets of more than 945 billion riyals as of last December.
Saudi National Bank’s chairman last week said the bank was not looking at any international acquisitions and was instead focused on growth in the Saudi market.
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