2023-05-01 14:39:14
He revealed that the fair value of the bank’s investment in “Credit Suisse” decreased by 70% in the first quarter of 2023
“Al-Ahly Saudi Arabia” revealed that the bank’s stake in “Credit Suisse” amounting to 9.88% will be transferred to a stake in “UBS” at a rate of about 0.5% upon completion of the merger.
The bank said in a statement on “Saudi Tadawul”, today, Monday, that the investments of “Al Ahly Saudi Arabia” in “Credit Suisse” amounted to 5.5 billion riyals (through a share offering on November 24, 2022 AD and a rights issue on December 8, 2022 AD).
He added that the fair value of the National Bank of Saudi Arabia’s investment in “Credit Suisse” decreased by about 20% on December 31, 2022 AD, and in the first quarter of 2023 AD, it decreased again by approximately 70%.
And the National Bank of Saudi Arabia announced the financial results ending on March 31, 2023, achieving an increase in profits by about 11.55% to 5.02 billion riyals, compared to profits of 4.5 billion riyals recorded by the bank in the same period in 2022.
Regarding the impact of the National Bank of Saudi Arabia’s investment in “Credit Suisse” on its financial results for the first quarter of 2023 AD, he said that the financial impact on the bank’s statement of financial position was a decrease in the fair value of the bank’s investment in “Credit Suisse” by approximately 70% during the first quarter of In 2023 AD (the book value of Credit Suisse investment amounted to 1.3 billion riyals on March 31, 2023 AD).
He explained that the financial impact on shareholders’ equity in the National Bank of Saudi Arabia was represented in a decrease in shareholders’ equity by 3.1 billion riyals as of March 31, 2023.
The bank indicated that there was no impact on the income statement as “Al Ahly Saudi Arabia”, as permitted by accounting standards, made an irrevocable choice to display subsequent changes in the fair value of the “Credit Suisse” investment through other comprehensive income.
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