News — ChangeLab

National Bank of Saudi Arabia to acquire 0.5% stake in UBS through merger with Credit Suisse

The largest shareholder of Credit Suisse Group, National Bank of Saudi Arabia (SNB), intends to get about 0.5% of UBS Group after the completion of the merger of the Swiss lenders. Previously, analysts reported, SNB owned 9.88% of Credit Suisse. As of early May 2023, the book value of SNB's investment in Credit Suisse was $346.6 million, down 70% from the first quarter of this year and down 20% from 2022.

SNB made "a final decision, in accordance with accounting standards, to record subsequent changes in the fair value of Credit Suisse's investments in other comprehensive income." This decision to reduce the value of the investment, according to Saudi experts, had little impact on the bank's income statement.

Our team estimates that the purchase of Credit Suisse stock had no significant impact on SNB's earnings. However, experts noticed a decline in total income that caused the bank's equity to fall by 3.1 billion rials, which reduced the lender's CET1 ratio by about 45 basis points.