Credit Suisse delays annual report following call from SEC
Credit score Suisse delayed the publication of its annual report on Thursday following a name from the US Securities and Alternate Fee the earlier night over money movement statements courting again to 2019.
The financial institution mentioned its monetary statements for 2022 — which it revealed final month — have been unaffected and that the SEC’s suggestions was of a technical nature, with out offering any extra data.
“Administration believes it’s prudent to briefly delay the publication of its accounts as a way to perceive extra totally the feedback obtained,” the financial institution mentioned.
The delay comes at a delicate time for the group, which introduced its second consecutive annual loss final month and mentioned it anticipated an extra loss in 2023.
Clients have withdrawn greater than SFr100bn ($106bn) of property from the financial institution in latest months, whereas longtime traders — together with former high shareholder Harris Associates — have bought down their stakes.
Shares in Credit score Suisse hit a report low final week of SFr2.52 and are down greater than 77 per cent over the previous two years, closing at SFr2.68 on Wednesday.
The SEC’s feedback relate to accounting points Credit score Suisse recognized in its 2021 annual report in relation to the netting remedy of some securities lending and borrowing actions. This resulted in stability sheet and money movement positions being understated.
The financial institution revised its whole property and liabilities by SFr13bn — equal to 1.7 per cent of its whole property — for 2020, which meant the money movement assertion was adjusted by SFr70mn.
Credit score Suisse additionally made adjustments to the money movement assertion for share-based compensation, non-cash alternate fee actions and a few money movement hedges.
The financial institution mentioned on Thursday that the SEC’s feedback additionally involved the financial institution’s associated controls of the money movement statements.
An individual with information of the financial institution’s discussions with the SEC mentioned the regulator had beforehand raised questions concerning the money movement statements, to which Credit score Suisse had supplied a response.
They added that the financial institution hoped to publish the annual report as quickly as potential however wished to verify it had responded to the SEC earlier than doing so.
Anke Reingen, an analyst at RBC, mentioned: “Now we have usually not centered on money movement statements; the quantities are comparatively small and the restatement was beforehand disclosed.
“Nonetheless, questions with respect to accounting, particularly from the SEC, are unfavorable, particularly because the Credit score Suisse press launch factors to SEC questions with respect to associated controls of the revisions.”