RIYADH — In light of the latest developments with regard to Credit Suisse, the Saudi National Bank (SNB) issued a brief statement on Monday clarifying its current market position.
In November 2022, SNB made a SR5.5 billion, or 9.88%, investment in Credit Suisse as a financial investment allocation within SNB’s investments portfolio as part of a capital raising exercise by the global investment and financial services firm based in Switzerland.
In relation to this investment, SNB disclosed as of December 2022, SNB’s investment in Credit Suisse constituted less than 0.5% of SNB’s total assets, and c. 1.7% of SNB’s investments portfolio.
From a regulatory capital perspective, the impact on SNB’s Capital Adequacy Ratio from the mark-to-market decline in Credit Suisse was c. 15 basis points as of
December 2022, with no impact on profitability, the SNB statement said, adding that in the light of the recent market announcement, the potential impact to SNB’s Capital Adequacy Ratio is c. 35 basis points, with no impact on profitability.
Changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans and forward looking 2023 guidance, the statement said.
"The Saudi National Bank’s total assets exceed SR945 billion. SNB remains comfortably above all prudential thresholds and continues to enjoy healthy capitalization and liquidity. SNB remains focused on its core strategy of growth in Saudi Arabia, which is among the fastest growing countries within the G20," the bank said.