Saudi National Bank, the largest shareholder in Credit Suisse before the bank’s rescue this month, named a new chairman after the lender suffered significant losses on its investment.
CEO Saeed Mohammed Al Ghamdi will take over as the new chairman from Ammar Al Khudairy, who resigned for personal reasons, the bank said on Monday. Deputy CEO Talal Ahmed Al Khereiji takes over as acting chief executive, a bourse statement said.
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All changes are effective on Monday and come nearly two weeks after Al Khudairy said the kingdom’s biggest bank by assets would not buy more shares in the Swiss financial institution on regulatory grounds.
The remarks were seen as a trigger to a further sell-off in Credit Suisse’s shares and intensified a crisis of confidence in the lender that had already seen clients pull out more than $110bn in the last three months of 2022.
Combined with global jitters in the banking sector and an already weakened share price, Al Khudairy’s comments contributed to Credit Suisse losing a fifth of its value, which eventually forced it into a takeover by its domestic rival UBS for $3.2bn.
Saudi National Bank, which acquired almost 9.9 percent of Credit Suisse for 5.5 billion riyals ($1.46bn) in November, has itself lost more than $26bn in market value since October 27 after committing to the investment.
By last week, it was sitting on a loss of more than $1bn but said on March 20 that the drop in its investment’s value had no impact on its growth plans and would not affect profitability.
Al Khudairy also said this month that the bank was not looking at any international acquisitions now and instead was focused on its Saudi business.