Credit Suisse Group AG (SIX:CSGN) has announced that it will delay the release of its 2022 annual report after it received a “late call” from regulators at the U.S. Securities and Exchange Commission on Wednesday. The Swiss lender said that the SEC had raised questions over the technical assessment of previously disclosed revisions to its consolidated cash flow statements in 2020 and 2019, as well as related controls.
Credit Suisse’s Response
In response to the queries, Credit Suisse stated that “management believes it is prudent to briefly delay the publication of its accounts in order to understand more thoroughly the comments received.” The annual report was originally due to be unveiled on Thursday morning. However, the bank confirmed that its 2022 results released in February are not impacted by the delay.
Analysts at RBC noted that while the last-minute queries from the SEC involve relatively small amounts and the restatement was previously disclosed, the questions are nonetheless negative. They flagged in particular concerns around “related controls” of the revisions.
Impact on Credit Suisse
Shares in Credit Suisse fell in early trading following the announcement of the delay in the release of the annual report. This news comes as a blow to the bank, which has already been facing a series of setbacks, including the fallout from the Archegos Capital Management and Greensill Capital scandals.
According to reports, Credit Suisse has been working on improving its risk management and controls following these incidents. However, the SEC’s queries regarding the technical assessment of the bank’s cash flow statements and related controls suggest that there may still be issues to address.
The Future for Credit Suisse
Credit Suisse’s reputation has taken a hit in recent years due to a string of high-profile scandals and legal cases. The bank has been working to rebuild its image and regain the trust of investors and regulators. However, this latest setback is likely to make this process even more challenging.
It remains to be seen how long the delay in the release of the annual report will be and what impact this will have on the bank’s financial performance and reputation. Nevertheless, it is clear that Credit Suisse still has work to do in terms of improving its risk management and controls to prevent future incidents.
Overall, Credit Suisse’s delay in the release of its 2022 annual report due to queries from the SEC regarding the technical assessment of previously disclosed revisions to its cash flow statements is a setback for the bank. The delay is likely to impact the bank’s reputation and raise concerns about its risk management and controls. Credit Suisse has been working to rebuild its image following a series of scandals, but this latest setback highlights the need for further improvement in these areas.