Credit Suisse delays annual report following last-minute call from SEC, shares fall 3.5%
The SEC had comments and questions about revisions Credit Suisse made to cash-flow statements related to the financial years 2019 and 2020, as well as related controls, the bank said
- Mar 9, 2023,
- Updated Mar 9, 2023 4:08 PM IST
Credit Suisse's shares fell 3.5% after it postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements.
The unusual intervention by the American regulator is the latest blow for Credit Suisse as the lender reels from a series of scandals and setbacks that have sent its share price plunging and led clients to withdraw billions.
The Zurich-based bank said the SEC had called it late on Wednesday regarding "certain open SEC comments about the technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019".
Credit Suisse said it had then decided to postpone publication of the annual report.
"Management believes it is prudent to briefly delay the publication of its accounts in order to understand more thoroughly the comments received," it said, adding that the 2022 financial results "are not impacted".
It is unclear when the 2022 annual report will be released.
The bank is carving out its investment bank, selling businesses not closely tied with its key wealth unit and reducing costs by cutting 9,000 jobs.
In February, Credit Suisse Group reported that 2022 was its biggest annual loss since the 2008 global financial crisis after rattled clients pulled billions from the bank, and it warned that a further "substantial" loss would come this year.
Switzerland's second-biggest bank has begun a major overhaul of its business, cutting costs and jobs to revive its fortunes, including creating a separate business for its investment bank under the CS First Boston brand.
Among a string of scandals, Credit Suisse was hard hit by the collapse of U.S. investment firm Archegos in 2021 as well as the freezing of billions of supply chain finance funds linked to insolvent British financier Greensill.
Other scandals to rock the bank included a prosecution in Switzerland involving laundering money for a criminal gang.
Last November, rating agency Standard & Poor's downgraded the bank to just one level above junk.
With inputs from Reuters
Also Read: Lenskart to raise $500 mn from Abu Dhabi Investment Authority: Report
Credit Suisse's shares fell 3.5% after it postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements.
The unusual intervention by the American regulator is the latest blow for Credit Suisse as the lender reels from a series of scandals and setbacks that have sent its share price plunging and led clients to withdraw billions.
The Zurich-based bank said the SEC had called it late on Wednesday regarding "certain open SEC comments about the technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019".
Credit Suisse said it had then decided to postpone publication of the annual report.
"Management believes it is prudent to briefly delay the publication of its accounts in order to understand more thoroughly the comments received," it said, adding that the 2022 financial results "are not impacted".
It is unclear when the 2022 annual report will be released.
The bank is carving out its investment bank, selling businesses not closely tied with its key wealth unit and reducing costs by cutting 9,000 jobs.
In February, Credit Suisse Group reported that 2022 was its biggest annual loss since the 2008 global financial crisis after rattled clients pulled billions from the bank, and it warned that a further "substantial" loss would come this year.
Switzerland's second-biggest bank has begun a major overhaul of its business, cutting costs and jobs to revive its fortunes, including creating a separate business for its investment bank under the CS First Boston brand.
Among a string of scandals, Credit Suisse was hard hit by the collapse of U.S. investment firm Archegos in 2021 as well as the freezing of billions of supply chain finance funds linked to insolvent British financier Greensill.
Other scandals to rock the bank included a prosecution in Switzerland involving laundering money for a criminal gang.
Last November, rating agency Standard & Poor's downgraded the bank to just one level above junk.
With inputs from Reuters
Also Read: Lenskart to raise $500 mn from Abu Dhabi Investment Authority: Report