HSBC Holdings Plc (HSBC.N) Chief Executive Officer John Flint became the latest senior banker to abandon the high-profile Future Investment Initiative conference in Saudi Arabia as pressure grows on the kingdom following allegations it killed a dissident journalist.
Credit Suisse Group AG (CS.N) CEO Tidjane Thiam is also not attending, a person familiar with the matter said. Standard Chartered Plc chief Bill Winters also pulled out, according to a spokesman for the emerging markets lender.
Key Takeaways
- The moves deal a severe blow to Saudi efforts to draw international financiers after JPMorgan Chase & Co.’s (JPM.N) top executive, Jamie Dimon, pulled out earlier.
- Saudi Arabia has been luring banks with a promise of winning fees in recent years as the kingdom seeks to attract foreign investments and sell state assets to diversify its oil-based economy. HSBC has been one of Saudi Arabia’s top advisers for IPOs since 2010, according to data compiled by Bloomberg.
- HSBC is one of the most active international investment banks through its local unit — HSBC Saudi Arabia, in which it owns a 49-per-cent stake. It also has a 40-per-cent holding in Saudi British Bank, which agreed to merge with Alawwal Bank earlier this year.
- Credit Suisse has been seeking to expand its business in the kingdom by seeking a licence to open branches, as well as hiring more relationship managers to run money for wealthy clients.
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