Credit Suisse shares tumble to lowest ever price after delaying annual report

The Swiss bank has suffered huge losses and been embroiled in a string of fraud and misconduct scandals.

Investment bank Credit Suisse has said it will slim down its global workforce by 9,000 as it ploughs ahead with huge cost-cutting measures (Alamy/PA)

Global banking giant Credit Suisse has seen its share price drop to its lowest ever level after revealing the publication of its annual report would be delayed.

The Switzerland head-quartered bank has suffered huge losses and been embroiled in a string of fraud and misconduct scandals.

Shares in the bank have been steadily declining for the past decade but its share price hit a record low of about 2.5 Swiss francs during the day on Thursday.

It compares to its highest ever price of around 87 Swiss francs back in 2007.

The bank said its 2022 annual report would be delayed after receiving a late call on Wednesday evening from the US Security and Exchange Commission (SEC), which regulates stock markets and investment activity.

According to Credit Suisse, the SEC raised a technical issue over revisions to cash flow statements from 2019 and 2020.

The bank had previously revised its cash flow statement including changes to share-based compensation.

“Management believes it is prudent to briefly delay the publication of its accounts in order to understand more thoroughly the comments received”, it said.

Credit Suisse, which has more than 50,000 global staff, recorded a pre-tax loss of 1.3 billion Swiss francs (£1.1 billion) over the fourth quarter after being hammered by economic decline, market volatility and a surge of customers withdrawing money.

Delays to the annual report do not impact the latest full-year financial results, the bank confirmed.

The bank also paid out large sums of money last year to settle tax fraud allegations in France and a years-long dispute in the US tied to mortgage-backed securities during the 2008 financial crisis.

It unveiled a “radical” cost-saving programme last year with plans to slim down its global workforce by 9,000 over the next three years, meaning it will lose about 10% of its investment bankers in Europe.

It forms plans to rebuild Credit Suisse to be more simplified and focused on its wealth and asset management arms, and deliver returns for shareholders.

In January, the bank’s boss Ulrich Korner said its turnaround was going well and it had begun to see money flow back into the business.

Mr Korner insisted that the bank plans to become profitable from 2024 onwards.

Its share price had edged up above 2.6 Swiss francs later on Thursday afternoon.