Credit Suisse has endured a barrage of problems in recent years, including its exposure to the implosions of US asset manager Archegos and UK firm Greensill
Credit Suisse has endured a barrage of problems in recent years, including its exposure to the implosions of US asset manager Archegos and UK firm Greensill AFP

Credit Suisse acknowledged Tuesday "material weaknesses" in its internal controls as the scandal-hit Swiss bank released its annual report, which was delayed following queries from US regulators regarding its books.

Credit Suisse was supposed to publish its annual report last week but it postponed the release after a last-minute call from the US Securities and Exchange Commission over revisions made to cash-flow statements for 2019 and 2020.

The bank's report said that its "internal control over financial reporting was not effective" for 2021 and 2022.

"The material weaknesses that have been identified relate to the failure to design and maintain an effective risk assessment process to identify and analyse the risk of material misstatements in its financial statements," the report said.

Credit Suisse has endured a barrage of problems in recent years, including its exposure to the implosions of US asset manager Archegos and UK firm Greensill in 2021.

Shares of Switzerland's second biggest bank hit a new low on Monday on contagion fears following the collapse of Silicon Valley Bank and a second US regional lender.

Its stock price sank by as much as five percent on Tuesday following the release of the report, but it rebounded by more than one percent later in the day amid a global market rebound.

Credit Suisse has lost some 80 percent of its market value since it was rocked by the bankruptcy of Greensill in March 2021, the first in a cascade of scandals.

"Credit Suisse is always in the emergency room when it comes to any market crisis, and today's news really intensifies the worries," said IG analyst Chris Beauchamp.

"It's a bank that can never seem to get its house in order."

The bank booked a net loss of 7.3 billion Swiss francs ($7.8 billion) for the 2022 financial year.

That came against a backdrop of massive withdrawals of funds by its clients, including in the wealth management sector -- one of the activities on which the bank intends to refocus as part of a major restructuring plan.

The annual report said these outflows "had not yet reversed" as of March.

But Credit Suisse chief executive Ulrich Koerner told Bloomberg Television that the bank attracted funds this week following SVB's collapse.

"We got inflows yesterday, which is a positive sign I would say," he said.

Koerner, who took over in August with the daunting task of revitalising the group, said the lender was "absolutely doing the right thing" by overhauling the bank but "it takes some time to get through".

"Nobody is pleased by the share price development but we manage what we can manage, and this is the execution of our plan," he said.

"We said it's a three-year transformation and you can't come after two months: 'Why is not everything done?'"