Credit Suisse Finds 'Material Weakness' in Its Financial Reporting

Credit Suisse acknowledged 'material weakness' in its financial reporting Tuesday as it scrapped bonuses for top executives in the wake of the bank's worst annual performance since the global financial crisis. From a report: The embattled Swiss lender also said chairman Axel Lehmann had proposed to 'voluntarily waive' a share award worth 1.5 million Swiss francs ($1.6 million) for the 2022-2023 financial year, given the firm's 'poor financial performance.' Credit Suisse (CSGKF) said in its annual report that it had found 'the group's internal control over financial reporting was not effective' because it failed to adequately identify potential risks to financial statements. The revelations come just days after the bank delayed the publication of the annual report after an eleventh-hour query from the US Securities and Exchange Commission over cash flow statements for 2019 and 2020. The board concluded that the 'material weakness could result in misstatements of account balances or disclosures that would result in a material misstatement to the annual financial statements of Credit Suisse,' the annual report said. Credit Suisse is urgently developing a 'remediation plan' to strengthen controls.

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