- Credit Suisse Group AG CS published its delayed FY22 Annual report in which it identified “material weaknesses” in its internal controls over financial reporting and confirmed that these were not due to customer attrition.
- Auditors PwC in the report included a negative opinion about the effectiveness of the Bank’s internal controls.
- The auditors found that Credit Suisse has not developed and maintained an effective risk assessment process to identify and analyze the risk of material misstatement of its financial statements within this system.
- “As of December 31, 2022, the Group’s internal control over financial reporting was not effective and for the same reasons management has reassessed and reached the same conclusion with respect to December 31, 2021,” it said.
- In the fourth quarter, Credit Suisse reported client outflows of CHF 110 billion.
- In its annual report, the bank said: “Outflows stabilized at much lower levels but had not yet reversed.”
- Related: Financial regulator examines remarks by Credit Suisse chairman on client outflows.
- The struggling investment bank delayed the release of its 2022 annual report last week after a belated call from the US Securities Exchange Commission.
- The SEC has provided certain open-ended comments regarding the technical assessment of previously released revisions to the consolidated statements of cash flows for the fiscal years ended December 31, 2019 and 2020.
- On Monday, the bank’s share price fell about 15% amid market turmoil sparked by US lenders Silicon Valley Bank SIVB And signature bank SBNY collapse.
- Price promotion: CS shares are down 4.72% to $2.42 during the premarket session last check Tuesday.
- Photo via Wikimedia Commons
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