ZURICH: Credit Suisse has lost one of its biggest shareholders as US investment firm Harris Associates sold its entire stake in the embattled bank, the Financial Times has reported.

Rocked by the implosions of financial firms Greensill and Archegos, Switzerland’s second largest bank posted its biggest loss since the 2008 financial crisis last year, at 7.3 billion Swiss francs ($7.9 billion).

Harris Associates was the bank’s largest shareholder with a 10-percent stake in October, but it started to reduce its stake as Credit Suisse launched a major overhaul that includes carving out its investment arm.

A filing at the Swiss stock exchange shows the investment firm’s stake fell below three percent in January, but David Herro, the chief investment officer and deputy chair of Harris Associates, told the Financial Times that it has now divested completely from Credit Suisse.

“There is a question about the future of the franchise,” Herro was quoted as saying, pointing to 111 billion francs withdrawn by Credit Suisse customers in the final quarter of 2022.

Herro noted that other European lenders are doing well thanks to rising interest rates that have boosted their earnings. He added that restructuring plan had turned out to more costly that Harris Associates had expected.

The Saudi National Bank overtook Harris Associates as Credit Suisse’s biggest shareholder last year with a 9.9-percent stake as part of a four-billion-franc fundraising.—AFP