Credit Suisse delays annual report after ‘late call’ from SEC
London (CNN) Credit Suisse can’t catch a break.
In the latest troubling news, the beleaguered Swiss bank has delayed the release of its 2022 annual report following a “late call” from the US Securities and Exchange Commission on Wednesday night.
The SEC made contact regarding audits the bank had in the past made to the cash flow statements for 2019 and 2020, Swiss credit (CS) said in a statement Thursday.
Shares in the bank, which have been trading around record lows, fell 5%.
“Management believes it is prudent to briefly delay the release of the financial statements in order to understand more thoroughly the comments received,” the company said.
Credit Suisse added that financial results for 2022 were not affected. These revealed the biggest annual loss since the 2008 financial crisis, highlighting the scale of the challenge the bank faces as it tries to turn itself around.
Thursday’s news underscores this challenge and will also increase governance concerns at Credit Suisse. It is already in the crosshairs of the Swiss financial regulator, which is reportedly looking into comments the lender’s chairman made about the health of its finances.
Customers withdrew 111 billion Swiss francs ($121 billion) in the last three months of 2022 as the bank was hit by social media speculation that it was on the brink of collapse.
The rumours, which triggered a sell-off in the lender’s shares, followed a series of missteps and compliance failures that have damaged the bank’s reputation and profits, as well as costing top executives their jobs.
Finma, the Swiss regulator, is seeking to determine the extent to which Axel Lehmann and other bank officials were aware that clients were still withdrawing money when he told reporters the outflows had stopped, Reuters reported last month, citing people familiar with the matter. .
Finma declined to comment, and Credit Suisse told CNN it does not “comment on speculation.”
In October, Credit Suisse launched a “radical” restructuring plan that involves cutting 9,000 full-time positions, spinning off the investment bank and focusing on asset management.
“We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation by reshaping our portfolio, reallocating capital, right-sizing our cost base and building on our leading franchises,” CEO Ulrich said Körner February 9.
