Financial Services

Credit Suisse finds ‘material weakness’ in financial reporting

Firm says its “internal control over financial reporting was not effective”

Credit Suisse said it had identified material weakness in its reporting. Photograph: Stephanie Keith/Bloomberg

Marion Halftermeyer
Tue Mar 14 2023 - 07:26

Troubled lender Credit Suisse said it had identified “material weaknesses” in its reporting procedures for the financial years 2022 and 2021 and is adopting a remediation plan.

For the two years “the group’s internal control over financial reporting was not effective,” Credit Suisse said in its annual report released on Tuesday. “Management has also accordingly concluded that our disclosure controls and procedures were not effective.”

The bank was forced to delay the release of its annual report from last week after US regulators raised last-minute queries. Credit Suisse didn’t specify whether those had been resolved.

The material weaknesses identified relate to the failure to design and maintain effective risk assessments in its financial statements, the bank said.

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“PwC, the independent registered public accounting firm that audited the financial statements for the year ended December 31, 2022, included in this annual report, has issued an adverse opinion on the effectiveness of the Group’s internal control over financial reporting as of December 31, 2022,” Credit Suisse said. -- Bloomberg

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