Saudi National Bank’s chairman, Ammar Al Khudairy, has resigned due to personal reasons following comments he made about Credit Suisse. The comments led to a sharp decline in the Swiss lender’s shares after the chairman said the bank would not invest any more money in Credit Suisse for liquidity reasons. Al Khudairy will be replaced by Saeed Mohammed Al Ghamdi, the current CEO of Saudi National Bank.
Ammar Al Khudairy, the chairman of the largest shareholder of Credit Suisse Group AG, Saudi National Bank, has resigned after comments he made about the Swiss lender prompted a sharp decline in the bank’s shares. Speaking to Bloomberg TV, Al Khudairy said that Saudi National Bank would not be open to investing any more money in Credit Suisse if there was another call for additional liquidity. The comment caused shares to plummet, and Credit Suisse’s credit spreads surged, contributing to a wider downturn in European banks.
Days after the share slump, UBS agreed to buy Credit Suisse in a historic deal facilitated by the Swiss government in a bid to contain the crisis of confidence that had begun to spread throughout global financial markets. The all-share deal, which includes extensive government guarantees and liquidity provisions, will see UBS pay 3 billion francs ($3.3 billion) for Credit Suisse.
The decline in Credit Suisse’s shares has also affected Saudi National Bank, which saw the value of its investment in the Swiss lender fall by approximately $1 billion after it acquired a 9.9% stake for 1.4 billion francs last year.
Following Al Khudairy’s resignation, Saeed Mohammed Al Ghamdi, the current CEO of Saudi National Bank, will take over the role of chairman. Additionally, the bank has appointed Talal Ahmed Al Khereiji as acting CEO. Al Khereiji previously served as the deputy CEO and head of wholesale banking at the Saudi lender.