Credit Suisse has delayed the release of its annual report due to a last-minute call from the US Securities and Exchange Commission (SEC), which raised concerns about the company’s earlier financial statements.
The unusual intervention by the American regulator is the latest setback for Credit Suisse, which is reeling from a string of scandals and setbacks that have sent its share price plummeting and clients withdrawing billions of dollars.
The SEC contacted the bank late Wednesday about “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 announced that it had decided to postpone the publication of its 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”.
When the 2022 yearly report will be made public is unknown.
The development, according to Vontobel analyst Andreas Venditti, “does not help investor sentiment and it does not help in rebuilding trust.” Shares of Credit Suisse were trading 3.2% weaker in Zurich during pre-market trading.
After alarmed customers withdrew billions from the bank, Credit Suisse Group revealed in February that 2022 was its largest yearly loss since the global financial crisis of 2008, and it issued a warning that this year would see another “substantial” loss.
In order to turn around its financial situation, Switzerland’s second-largest bank has started a major business overhaul that includes separating the operations of its investment bank under the CS First Boston name and cutting costs and jobs.
Credit Suisse suffered greatly from a number of scandals, including the collapse of the American investment company Archegos in 2021 and the freezing of billions of supply chain finance funds connected to the bankrupt British financier Greensill.
Other scandals that rocked the bank included a Swiss prosecution involving money laundering for a criminal organization.
Standard & Poor’s downgraded the bank to just one level above junk in November of last year.