Shares of Credit Suisse (NYSE: CS) slid in pre-market trading on Tuesday, trading just above its yearly low of $2.38 after the embattled Swiss bank announced a “material weakness” in its reporting processes for 2022 and 2021. The Bank published its delayed annual report which was originally scheduled for publication last Thursday but was delayed by a late call from the U.S. Securities and Exchange Commission (SEC).
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The Bank stated that the late call from the U.S. SEC was related to a “technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls.”
Credit Suisse stated that the “material weakness,” would result in “misstatements of account balances or disclosures that potentially would not be prevented or detected.” The Bank is planning on a remediation strategy and aims to strengthen its risk and control framework. CS admitted that while its net asset outflows have declined they have “not yet reversed.” The Bank confirmed FY22 net loss of $8 billion.
Analysts remain sidelined about CS stock with a Hold consensus rating based on one Buy, one Hold and one Sell each.
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