Credit Suisse disclosed it found “material weaknesses” in its financial reporting processes for 2021 and 2022 that could have resulted in “misstatements” of financial results.
... [+]The weaknesses include the lack of effective risk assessment to identify misstatements in its financial reporting and a lack of effective oversight.
The bank said its management is developing a “remediation plan” to address the problem but noted its annual report “fairly presents” its consolidated financial condition for the two years. The lender also disclosed that PricewaterhouseCoopers, which audited its financial statement for 2022, also issued “an adverse opinion” on the bank’s “internal control over financial reporting.”
Credit Suisse was forced to delay the release of its annual report by a week after it received a last minute call from the Securities and Exchange Commission with questions about its cash-flow statements from 2019 and 2020, which have now been resolved.since the 2008 financial crisis—also disclosed that its customer withdrawals, which surged in the early part of the fourth quarter last year, have “stabilized to much lower levels” but have “not yet reversed.
In addition to the disclosure, the crisis stricken investment bank also said its chair, Axel Lehmann, has agreed to forego a $1.65 million annual payment usually meant for top board members.The investment bank’s stocks were down more than 4% in morning trading after the annual report was released. Credit Suisse shares, along with other banking stocks, has been hit by a global rout triggered by the collapse of Silicon Valley Bank last week.
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