Credit Suisse’s Saudi backer happy with transformation plan, doesn’t think extra money needed

By Rachna Uppal

RIYADH (Reuters) – Credit Suisse Group’s Saudi backer is happy with the transformation plan and doesn’t think the Swiss lender will need extra money.

Saudi National Bank’s (SNB) chairman Ammar Al Khudairy on Wednesday described Credit Suisse as an opportunistic investment and said the value realisation of that investment will unfold as the Swiss bank proves they are doing the turnaround.

“We are happy with the plan, the transformation plan that they have put forward. It is a very strong bank,” Al Khudairy said on in an interview with Reuters.

“I don’t think they will need extra money; if you look at their ratios, they’re fine. And they operate under a strong regulatory regime in Switzerland and in other countries,” Al Khudairy said on the sidelines of a conference in Riyadh.

SNB’s investment objective is not dependent on time, and the Saudi bank will exit when proper value to the shares is acquired, he added.

The Saudi lender acquired a stake of almost 10% last year after it took part in Credit Suisse’s capital raising and committed to investing up to 1.5 billion Swiss francs ($1.5 billion).

(Writing by Hadeel Al Sayegh; Editing by Toby Chopra)