Saudi National Bank (SNB), Credit Suisse’s largest shareholder, said it would be unaffected by the reduced valuation of its investment after rival UBS bought out the Swiss lender.

Following the collapse of Silicon Valley Bank and Signature Bank, shares of Credit Suisse and other banks took a plunge. Its stock went up after news of its acquisition by banking giant UBS for $3.23 billion in a Swiss government-backed deal. 

The Saudi bank acquired almost 9.9% of Credit Suisse for $1.46 billion last November, but a month later, it only represented 0.5% of the Saudi firm’s total assets and approximately 1.7% of its investments portfolio. 

Saudi National Bank bought 307.6 million Credit Suisse shares for $4.11 per share. The UBS offer of $3.23 billion values Credit Suisse shares at $0.82 each, a significantly lower price paid by SNB. According to Reuters, this means that the Saudi bank is at risk of a loss of roughly $1.17 billion on its investment. 

In a statement on the Saudi stock exchange Tadawul, SNB said, “Changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans and forward-looking 2023 guidance.”

Since the investment in Credit Suisse formed less than 0.5% of the Saudi lender’s total assets, there is no expected impact on profitability, the statement said.

Last week, Saudi National Bank Chair Ammar Al Khudairy said that the bank is not looking at international opportunities and instead focusing on expanding its business in Saudi Arabia.