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The management of the company, in a statement, said that it will be wise to postpone the publication for a short period of time to examine and understand more completely the comments received.
Credit Suisse recently announced that it is planning to postpone the emergence of its annual 2022 report following a late call from the US Securities and Exchange Commission (SEC) on Wednesday night.
In a public announcement from the perturbed investment banking company, it was claimed that the conversation with SEC revolved around the technical examination of previously revealed revisions to the compact cash flow statements in the years 2020 and 2019.
The management of the company, in a statement, said that it will be wise to postpone the publication for a short period of time to examine and understand more completely the comments received. The bank said in its statement that the 2022 financial results as initially released on February 9, 2023, will not be affected by the same.
The annual report for this year was supposed to be released on Thursday. morning. On February 9, Credit Suisse also acknowledged a staggering full-year net loss of 7.3 billion Swiss Francs ($7.8 Billion).
It is not abnormal for the SEC to ask questions to banks and demand answers for some of their disclosure, however, a delay in the annual report is not very common. Following the delay, the shares dropped from 3.2% to 2.59% Francs in early trading.
The raised eyebrows over the bank’s past financial statements follow after the lender underwent a complicated refurbishing after years of losses and scams. The bank is in the process of scooping out its investment bank, trading enterprises not closely associated with its key wealth unit, and lowering costs by laying off over 9000 job postings. Long-time major shareholder Harris Associates claimed this week that it had sold its stake in the bank, as the lender also confirms that it has suffered a significant loss this year.
According to Anke Reingen at the Royal Bank of Canada, the questions concerning accounting from SEC are not happy news and can have a negative impact.
The bank, however, did not reveal when it plans to release the report.
In the 2021 annual report, Credit Suisse claimed that it had recognized “not material” accounting concerns to specific securities lending and borrowing practices. This resulted in several revisions for the financial year 2020. As a consequence, the group’s aggregated assets grew and lowered associated leverage ratios by 10 basis points.
The bank also declared in October that it planned to facilitate and change its industry in a need to come back to stable profitability, after a persistent below-par performance in its investment bank and a litany of risk and compliance troubles.
In February this year, Swiss regulator FINMA deduced that Credit Suisse grimly breached its supervisory duties surrounding a business relationship with collapsed supply chain finance company Greensill Capital.