Saudi National Bank (SNB) has suffered a loss of nearly 80% on its investment in Credit Suisse after the embattled Swiss bank was acquired by UBS, reported CNBC.

The bank, which is the largest shareholder in Credit Suisse, currently holds a 9.9% stake in the bank.

In November last year, SNB invested CHF1.4bn ($1.5bn) in Credit Suisse to buy the bank’s stock at CHF3.82 per share.

However, after agreeing to buy Credit Suisse, UBS is offering Credit Suisse shareholders CHF0.76 for each share.

This deep reduction is aimed at bolstering the global banking system by the regulators amid the collapse of Silicon Valley Bank and downfall of First Republic Bank shares, added the publication.

Even after facing losses, SNB says that it will continue to implement its current broader strategy.

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In a statement seen by CNBC, Saudi National Bank said: “As at December 2022, SNB’s investment in Credit Suisse constituted less than 0.5% of SNB’s total Assets, and c. 1.7% of SNB’s investments portfolio.”

The firm also noted that there was “nil impact on profitability” from a “regulatory capital perspective.”

SNB added: “Changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans and forward looking 2023 guidance.”

Credit Suisse’s second-largest investor Qatar Investment Authority (QIA) also incurred massive losses.

QIA currently has a 6.8% stake in the Swiss bank, which has been dealing with numerous issues over the past few years, such as scandals, multibillion-dollar losses, changes in leadership and others.