Credit Suisse shares fall after Saudi backer rules out further aid

Credit Suisse announced on Thursday that it will delay the publication of its 2022 annual report.

Stefan Wermuth | Bloomberg | Getty Images

Troubled Bank Shares Swiss credit Wednesday hit a new all-time low for a second straight session, dropping more than 20% shortly before being halted.

Credit Suisse’s biggest investor, the Saudi National Bank, said it could not provide the Swiss bank with any further financial assistance, according to a Reuters report.

“We can’t because we would go over 10%. It’s a regulatory problem,” Saudi National Bank chairman Ammar Al Khudairy told Reuters on Wednesday.

Several Italian banks were also subject to automatic trading halts after sharp declines, including UniCreditFinecobank and Mount Dei Paschi.

Investors also continue to assess the impact of Tuesday’s announcement by the bank that it had discovered “material weaknesses” in its financial reporting processes for 2022 and 2021.

The troubled Swiss lender disclosed the sighting in its annual report, originally scheduled for last Thursday, but was delayed by a late call from the U.S. Securities and Exchange Commission (SEC).

The conversation with the SEC related to a “technical assessment of previously disclosed revisions to the consolidated cash flow statements for the years ended December 31, 2020 and 2019, and related controls.”

Liquidity risk

At the end of 2022, the bank disclosed that it was seeing ‚Äúsignificantly higher cash deposit withdrawals, non-renewal of maturing term deposits and net asset outflows at levels that significantly exceeded the rates incurred at third quarter of 2022″.

Credit Suisse recorded client withdrawals of more than 110 billion Swiss francs in the fourth quarter as a series of scandals, legacy risks and compliance failures continued to plague it.

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