(Reuters) — Credit Suisse has delayed the publication of its annual report after a last-minute call from the US Securities and Exchange Commission, which raised questions about its past financial reports.
The unusual intervention by the US regulator is the latest blow to Credit Suisse as it tries to rebuild investor confidence after a series of scandals and setbacks that have sent its shares tumbling and clients pulling out billions.
Credit Suisse shares were near record lows in Zurich on Thursday but later recovered much of a 6% loss.
The Zurich-based bank said the SEC had subpoenaed it late Wednesday regarding “certain open SEC comments on the technical assessment of previously disclosed changes to the consolidated statements of cash flows for the years ended December 31, 2020 and 2019, as well as related controls.”
The bank had revised how it accounted for a range of cash flows, including share-based compensation and currency hedging.
Credit Suisse said it had decided to postpone the publication of its 2022 annual report following the call.
“Management believes it is prudent to briefly delay publication of its accounts in order to more fully understand the comments received,” it said, adding that financial results for 2022 “are not affected.”
The SEC declined to comment on the matter.
It remains unclear when the annual report will be released and the Credit Suisse announcement concerned analysts.
“(It) doesn’t help investor sentiment and it doesn’t help rebuild confidence,” said Andreas Venditti of Vontobel.
In February, Credit Suisse reported that 2022 brought its biggest annual loss since the 2008 global financial crisis after rattled customers pulled money from the bank, and it warned that another “significant” loss was coming this year.
Credit Suisse, Switzerland’s second-largest bank, was hit hard by the collapse of US investment firm Archegos in 2021 as well as the freezing of billions in supply chain financing linked to insolvent British financier Greensill.
The bank was also rocked by an indictment in Switzerland involving money laundering for a criminal gang.
Meanwhile, credit rating agency Standard & Poor’s downgraded Credit Suisse to just one level above so-called junk status in November.