Embattled lender Credit Suisse (CS) has delayed the release of its annual report, prompting its stock to fall 5% in premarket trading.
The Swiss bank said it made the decision to postpone its annual report after a discussion with the U.S. Securities and Exchange Commission (SEC), which raised questions about its financial statements.
The intervention by the Wall Street regulator is the latest problem for Credit Suisse, which continues to struggle in the wake of a series of scandals that have sent its share price plunging and led clients to withdraw billions from the Zurich-based bank.
Credit Suisse said the SEC has concerns about revisions to how it booked a series of cash flows, including share-based compensation and foreign exchange hedges.
Credit Suisse said that following its discussion with the SEC it decided to postpone the annual report and that it plans to revise the publication. It is not clear when the 2022 annual report will now be released.
Earlier this year, Credit Suisse reported its biggest annual loss since the 2008 global financial crisis as clients pulled money from the bank in droves. The bank also warned of further “substantial losses” this year.
Switzerland's second-biggest bank, Credit Suisse is overhauling its business, cutting costs and jobs, and creating a separate business for its investment banking unit.
Credit Suisse was hurt by the collapse of U.S. investment bank Archegos in 2021 and has faced legal prosecution in Switzerland over money laundering for a criminal organization.
Last November, ratings agency Standard & Poor's downgraded Credit Suisse’s bonds to one level above junk grade.
Credit Suisse’s stock has fallen 62% over the past 12 months to trade at $2.90 U.S. per share.
