saeed mohammed al ghamdi: Saudi National Bank chair resigns in wake of Credit Suisse loss

DUBAI: The chairman of prime Credit score Suisse shareholder Saudi Nationwide Financial institution (SNB) has stepped down lower than two weeks after making feedback blamed for contributing to the Swiss lender’s demise.

Ammar Al Khudairy stated on March 15 that the largest Saudi financial institution by property couldn’t purchase extra shares in Credit score Suisse on regulatory grounds.

That helped set off to an additional sell-off within the Swiss financial institution’s shares, exacerbating a disaster of confidence within the lender which noticed shoppers pull out greater than $110 billion within the closing quarter of 2022.

The sell-off led to a government-arranged takeover of Credit score Suisse by rival UBS and noticed SNB take a lack of greater than $1 billion on its stake of just about 9.9%.

SNB had paid 5.5 billion riyals ($1.46 billion) for the stake final November.

Its personal shares have shed greater than $26 billion in worth since Oct. 27 when it dedicated to creating the funding.

“It (SNB’s funding in Credit score Suisse) anxious sure traders primarily as a result of SNB invested abroad at a time when the home alternative is extra compelling,” stated Shabbir Malik, an analyst at EFG Hermes. CEO Saeed Mohammed Al Ghamdi will take over as chairman from Al Khudairy, who the financial institution on Monday stated had resigned for private causes.

Deputy CEO Talal Ahmed Al Khereiji takes over as performing chief govt, a bourse assertion stated.

Shares in SNB closed down 0.11% on Monday after having jumped virtually 2% following the information.

The management modifications are efficient March 27.

DOMESTIC FOCUS

SNB was fashioned via a merger of Nationwide Industrial Financial institution (NCB) and Samba Monetary Group in 2021 resulting in an entity with mixed property of greater than 900 billion riyals ($239.66 billion).

The Public Funding Fund (PIF) is its largest shareholder with a 37.24% stake, Refinitiv Eikon knowledge confirmed.

SNB and PIF didn’t instantly reply to Reuters’ requests for remark.

On the time of the merger, Al Ghamdi was the chairman of Nationwide Industrial Financial institution, the larger of the 2 entities, earlier than taking up the position of CEO at SNB.

A Gulf supply accustomed to SNB’s technique stated Al Khudairy was seen as an “worldwide expansionist” whereas Al Ghamdi was extra rooted to the home progress story.

Al Ghamdi’s appointment as chair signifies the financial institution is pivoting again to concentrate on home progress and funding, stated the supply, who was not authorised to talk to the media on the file.

Al Khereiji, SNB’s new performing CEO, beforehand served as performing chief govt at NCB, SNB’s web site confirmed.

SNB reported a close to 47% enhance in internet revenue in 2022 boosted by larger working revenue and decrease impairments, because the Saudi economic system rebounded submit COVID-19 to file GDP progress of 8.7%.

Earlier this month, the Saudi lender stated the drop in worth of its Credit score Suisse funding had no affect on its progress plans and wouldn’t have an effect on profitability.