Saudi National Bank Chairman Al Khudairy resigns after comment on Credit Suisse investment

Saudi National Bank (SNB) Chairman Ammar Abdul Wahed Al Khudairy has resigned from his role, citing personal reasons. Chief Executive Officer Saeed Mohammed Al Ghamdi would succeed as the lender’s new chairman and, subsequently, has stepped down as the CEO and Managing Director of the group. 

The bank's board also appointed Talal Ahmed Al Khereiji as the acting CEO. All changes are effective from March 27.

Ammar Al Khudairy’s resignation comes days after he said in an interview that Saudi National Bank is “absolutely not” open to further investments in Credit Suisse, when asked if they are open for additional liquidity. Saudi National Bank is the largest shareholder of Swiss lender, Credit Suisse. It became the largest shareholder after an acquisition of 9.9 per cent last year. 

The Swiss bank’s shares plunged to a record low following the comments. Credit Suisse has been looking to recover from a string of scandals that have marred investor and client confidence. 

Following Al Khudairy’s comments and its aftermath, Saudi National Bank clarified that Credit Suisse had not asked for capital infusion or any assistance in the first place. Al Khudairy said in another interview to CNBC, “There has been no discussion with Credit Suisse about providing assistance. I don't know where the word assistance came from. There have been no discussions whatsoever in the past, since October, about Credit Suisse needing more capital, or requiring assistance.”

He said that there was “unfortunate reporting or chatter” that they had refused assistance, but no assistance was sought by Credit Suisse. 

Al Khudairy said that people were just looking for excuses as the entire banking sector had dropped. He said there was a little bit of panic whether it is for Credit Suisse or the entire market. 

(With agency inputs)

Also read: Credit Suisse crisis: Saudi National Bank says Swiss banking major never asked for any assistance after Oct

Also read: Credit Suisse’s top shareholder Saudi National Bank rules out more financial assistance, stock falls 20%