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Saudi National Bank to Lose Over $1 Billion on Credit Suisse Investment. How will this impact the Bank And Investors? Check It Out Now!

Saudi National Bank has lost over $1 billion in its investment in Credit Suisse. The loss resulted from UBS’s forced takeover of Credit Suisse for $3.2 billion. Saudi National Bank, Credit Suisse’s largest shareholder, holds a 9.9% stake in Credit Suisse and invested 1.4 billion Swiss francs in the bank in November 2022. Following the conditions of the rescue deal, UBS paid Credit Suisse shareholders 0.76 francs per share, which resulted in a significant discount as regulators tried to shore up the global banking system. The loss follows a turbulent few weeks that saw the demise of the United States-based Silicon Valley Bank, the shares of First Republic Bank, and major stock price declines across the global banking sector.

The circumstances that led to the Saudi National Bank’s investment in Credit Suisse were due to its desire to diversify its investment portfolio and expand its holdings in global financial institutions. Saudi National Bank believed that Credit Suisse was a reputable and stable bank that would provide strong returns. Unfortunately, the value of Credit Suisse dropped as a result of years of scandals, enormous losses, changes in leadership, and a strategy that didn’t win over investors.

The Saudi National Bank’s investment loss in Credit Suisse has significant implications for the bank, its customers, and the broader financial industry. Saudi National Bank confirmed that it had been hit with a loss of around 80% on its investment, constituting less than 0.5% of its total assets and 1.7% of its investment portfolio. The loss will impact the bank’s growth plans and forward-looking 2023 guidance.

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The bank’s second-largest stakeholder, the Qatar Investment Authority, also saw a significant loss of 6.8% of its stock. The Saudi National Bank is largely to blame for the abrupt fall that started last week and resulted in the bank’s emergency sale. When asked on Wednesday if the Saudi National Bank would expand its share in the struggling Swiss institution, Chairman Ammar Al Khudairy responded, “Absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory.” Although the Saudi bank had already said in October that it had no plans to increase its stakes beyond the existing 9.9%, this news still caused market fear and sent Credit Suisse shares down 24% that session. This further led to investor panic and resulted in a significant loss for Saudi National Bank.

In conclusion, Saudi National Bank’s investment loss in Credit Suisse resulted from UBS’s forced takeover of Credit Suisse, the decline in value due to a culmination of years of scandals, leadership changes, multibillion-dollar losses, and a strategy that failed to inspire investor confidence. The loss has significant implications for the bank, its customers, and the broader financial industry. It highlights the importance of conducting thorough due diligence before investing in any financial institution and the need for banks to diversify their investment portfolio to mitigate losses.

FAQs

 

Who owns Credit Suisse bank?  – Credit Suisse Group AG is a joint-stock company registered in Zürich that operates as a holding company and owns the Credit Suisse Bank. 

What is the rate of SNB bank to India?  – The Current rate of SNB bank to India is 50 SNB for ₹15.96 and 100 SNB for ₹31.9

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Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!