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Credit Suisse reports material weaknesses in financial reporting

Credit Suisse reports material weaknesses in financial reporting

Shares in Credit Suisse have slumped by a further five percent as the Swiss lender identifies material weaknesses in its financial reporting processes.

In its delayed annual report, Credit Suisse says that the Group’s internal control over financial reporting for the years 2021 and 2022 was "not effective as it did not design and maintain an effective risk assessment process to identify and analyse the risk of material misstatements in its financial statements".

The bank states that it is investing significant resources to overcome the failings as an "immediate priority".

Credit Suisse has been on the ropes of late after experiencing significant outflows of deposits since the fourth quarter.

More than 110 billion Swiss francs was withdrawn from the bank in the fourth quarter, as customers took flight following a string of scandals, legacy risk and compliance failures.

In October, Credit Suisse management laid out plans to slash 9000 jobs and hive off its investment banking unit after posting a £3.5 billion loss in its third quarter.

The bank says that while outflows have stabilised, they have "not yet reversed".

In light of the ongoing problems at the bank, newly-installed chairman Axel Lehman has foregone a $1.6 million bonus due to him and accepted a pay cut.

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