Shares of the Swiss bank Credit Suisse fell more than 30% and hit a record low after the refusal of its largest shareholder, the National Bank of Saudi Arabia, to inject new funds into it to keep it running. About this March 15 informs Bloomberg.
The cost of the bank’s securities at the moment fell to 1.56 francs, which is 30.3% lower than the close of trading on March 14. The shares later bounced back. They ended trading at 1.7 francs, down 24.3%.
Papers fell sharply on the background of the refusal of the largest shareholder Credit Suisse to increase its share in it and invest new funds. Saudi Arabian National Bank Chairman Ammar al-Khudayri said this would not be “absolutely certain” for several reasons. The regulator bought a 9.9% stake in the Swiss bank at the end of 2022 for 1.4 billion francs. In recent months, they have fallen in price by a third. The National Bank cannot increase the share, because it will exceed 10%, and this is fraught with regulatory difficulties.
Prior to this, investors did not like the bank’s financials for 2022, which it published with a delay the day before. It states that the organization’s revenues are declining and operating costs are rising. In addition, Credit Suisse found “material deficiencies” in the reporting that could lead to “distortions” in financial results, and also confirmed a significant outflow of customer funds.
Following Credit Suisse, shares of European and even American banks began to fall. Shares of Societe Generale fell more than 12% on the day, BNP Paribas – 10.5%, Deutsche Bank – 9.3%, Commerzbank – 8.8%.