DUBAI: Saudi National Bank’s almost 10% shareholding in Credit Suisse will convert to approximately 0.5 percent of UBS following the merger of the two Swiss lenders, a bourse statement said on Monday.
Saudi National Bank, Credit Suisse’s top shareholder, said the carrying value of its investment in the troubled Swiss lender was SR1.3 billion ($346.63 million) on March 31, a decline of almost 70 percent during the first quarter.
“SNB’s shareholding in Credit Suisse of 9.88 percent will convert into a shareholding in UBS of approximately 0.5 percent upon completion of the merger,” the bourse statement said.
On Dec. 31, 2022, the value of SNB’s investment in Credit Suisse had declined by approximately 20 percent, the statement said. It then posted an additional fall of almost 70 percent during the first three months of 2023.
In March, Fitch Ratings said the UBS takeover of Credit Suisse would have a neutral impact on SNB’s A- rating, due mainly to the limited contribution of the Credit Suisse investment to its group asset portfolio of less than 0.5 percent of total assets.
