Saudi National Bank: We are not worried about Credit Suisse’s governance and support the transformation plan

The National Bank of Saudi Arabia said it has not received any information that could raise concerns about the governance of Credit Suisse and that it continues to support the transformation plan announced by the bank on October 27.

The Saudi bank’s announcement came after concerns raised by two other Swiss bank investors about handling any potential conflict of interest for former board member and director Michael Klein and director Blythe Masters when it began to implement an overhaul. last month, according to Reuters.

The National Bank of Saudi Arabia has agreed to invest 1.5 billion Swiss francs ($ 1.59 billion) in the Swiss bank and is expected to acquire a 9.9% stake.

In a previous interview with Al-Arabiya, the Chairman of the Board of Directors of the National Bank of Saudi Arabia, Ammar Al-Khudairi, said that the investment in Credit Suisse is tactical rather than strategic, adding that the bank has limited investments in Credit Suisse at 9.9% and this percentage will not be increased.

Al-Khudairi said: “We do not wish to join the Credit Suisse board of directors or interfere in its decisions and we may take in consider leaving in 2024 or 2025, but it won’t be before 2024 “.

He explained that Credit Suisse aims to implement a plan to sell some asset and reduce the number of employees, and this plan will be implemented within two years and, with its successful implementation, Credit Suisse’s rating will increase, so we may think about leaving.

Al-Khudairi pointed out that the Saudi National Bank’s increased participation in Credit Suisse will bring in accounting and legislative requirements and new controls on the purchase and sale of shares.

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