Credit Suisse Warns 'Material Weaknesses' In Financial Reporting

Credit Suisse Group AG CS released its delayed FY22 annual report in which it identified "material weaknesses" in its internal controls over financial reporting and confirmed it was not due to customer outflows.
Auditors PwC in the report included an adverse opinion on the effectiveness of the bank's internal controls.
The auditors noted that Credit Suisse did not design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements in 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 has reached the same conclusion regarding December 31, 2021," it said.
In Q4, Credit Suisse reported customer outflows of CHF 110 billion.
In its annual report, the bank said, "outflows stabilized to much lower levels but had not yet reversed."
Related: Financial Regulatory Authority Reviews Remarks By Credits Suisse's Chairman On Client Outflows.
The battered investment bank delayed the publication of its 2022 Annual Report last week following a late call from the U.S. Securities Exchange Commission.
The SEC communicated certain open comments about the technical assessment of previously disclosed revisions to consolidated cash flow statements for the years ended December 31, 2019, and 2020.
On Monday, the bank's share price witnessed around 15% fall amid market turmoil triggered by U.S. lenders Silicon Valley Bank SIVB and Signature Bank SBNY collapse.
Price Action: CS shares are down 4.72% at $2.42 during the premarket session on the last check Tuesday.
Photo via Wikimedia Commons

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Credit Suisse Warns 'Material Weaknesses' In Financial Reporting