After Credit Suisse announced it had found “material weaknesses” in its financial reporting processes for 2022 and 2021, shares of the bank fell to a new all-time low.

The disclosures came in the Swiss lender’s annual report, which had been scheduled to be released last Thursday, but was delayed after a call from the US Securities and Exchange Commission (SEC).

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

In the Tuesday annual report, the lender acknowledged that it had found, “certain material weaknesses in our internal control over financial reporting” for the years 2021 and 2022.

The issues revolved around a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements” as well as flaws in internal control and communication.

Despite these shortcomings, the bank said its financial reports over the years in question, “fairly present, in all material respects, [its] consolidated financial condition.” 

The bank also noted that its net outflows had declined, “but not yet reversed.” The report confirmed the full year net loss of 7.3 billion Swiss francs ($8 billion) which it had announced on Feb 9th.

Shares fell 5% as trading opened, but it had pared the losses by the close, ending flat as global markets rebounded.

At the end of last year, the bank revealed it was seeing, “significantly higher withdrawals of cash deposits, non-renewal of maturing time deposits and net asset outflows at levels that substantially exceeded the rates incurred in the third quarter of 2022.”

The bank saw 110 billion swiss francs of outflows in the fourth quarter amid a raft of scandals, legacy risks, and compliance failures.

The bank noted, “These outflows stabilized to much lower levels but had not yet reversed as of the date of this report. These outflows led us to partially utilize liquidity buffers at the Group and legal entity level, and we fell below certain legal entity-level regulatory requirements.”

The bank further admitted these conditions have, “exacerbated and may continue to exacerbate” liquidity risks.

The reduced assets now under management will also reduce net interest income, as well as recurring commissions and fees, which as a result will affect the bank’s capital position objectives.

The report noted, “A failure to reverse these outflows and to restore our assets under management and deposits could have a material adverse effect on our results of operations and financial condition.”

The bank said however that it had taken “decisive action” to deal with legacy issues as part of the massive strategic overhaul it is presently undergoing, however that is expected to produce another “substantial” financial loss in 2023.