Credit Suisse has admitted "material weaknesses" in its internal controls over financial reporting and risk assessments in 2022 and 2021.

In its delayed annual report, released today (14 March), the banking giant stated "management has identified certain material weaknesses in our internal control over financial reporting".

Credit Suisse warns of further pain after biggest losses since 2008

This related 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".

It also related to the failure to design and maintain effective monitoring activities.

As a result of which, Credit Suisse added, "management has concluded that, as of December 31, 2022, the group's internal control over financial reporting was not effective".

For the same reasons, the bank has reassessed and has reached the same conclusion regarding the year to 31 December 2021.

Disclosure controls and procedures were also found to be "not effective", the report said.

The failures mean the bank did not design and maintain effective controls over the classification and presentation of the consolidated statement of cash flows, it added.

The bank said its full year 2022 results, when it reported a CHF 7.3bn loss, its biggest annual loss since the financial crisis, were unaffected.

In a joint statement the chair and chief executive said 2022 was "undoubtedly one of the most challenging years in the recent history of our bank", adding "the need for renewal is clear".

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Credit Suisse has faced a string of problems in the two years during which these "material weaknesses" have now been uncovered.

In March 2021, it found itself embroiled in the Greensill Capital scandal, costing clients as much as $3bn on their investments.

Then in April the same year, the bank suffered a $4.7bn hit in the meltdown of US hedge fund Archegos Capital, and fired at least seven executives in the aftermath.

Last June, Credit Suisse was found guilty of failing to prevent a Bulgarian crime ring from laundering money related to cocaine trafficking, and fined $22m. 

Credit Suisse has also had thousands of account details leaked, revealing illegal activities of customers, and is under investigation by US lawmakers over compliance with sanctions against Russian oligarchs following Russia's invasion of Ukraine.