UBS's auditor issues warning over bank's financial reporting controls for 2024

Stefania Spezzati and Tommy Reggiori Wilkes

Mon, Mar 17, 2025, 4:55 AM 2 min read

By Stefania Spezzati and Tommy Reggiori Wilkes

LONDON (Reuters) - UBS's auditors person expressed an "adverse opinion" connected the bank's interior controls implicit its fiscal reporting for 2024, aft it failed to resoluteness issues related to misstatements inherited from Credit Suisse, the Swiss lender said connected Monday.

An adverse sentiment is mostly understood to beryllium a informing to investors that indicates that a company's fiscal statements could beryllium misrepresented, misstated, and bash not accurately bespeak its fiscal show and health.

UBS has been moving to resoluteness issues successful Credit Suisse's interior controls and said past twelvemonth it was inactive reviewing imaginable misstatements, aft acquiring the lender successful a government-orchestrated rescue successful 2023.

In its yearly study published connected Monday, UBS said that pursuing the merger of UBS and Credit Suisse past year, it could nary longer exclude Credit Suisse from its appraisal and that it needed much clip to resoluteness the problem.

"As of 31 December 2024, UBS’s interior power implicit fiscal reporting was not effectual due to the fact that of the worldly weakness" related to the Credit Suisse business, the Zurich-based slope said.

"The absorption has concluded that determination is simply a worldly weakness successful interior power implicit fiscal reporting arsenic of 31 December 2024."

Ernst & Young, re-elected arsenic UBS's auditor past year, said successful its appraisal connected Monday that due to the fact that of the effect of the worldly weakness, it had concluded that UBS had "not maintained effectual interior power implicit fiscal reporting" arsenic of end-2024.

Before its rescue, Credit Suisse and U.S. authorities had engaged successful a months-long statement implicit the severity of the bank's reporting deficiencies.

UBS said connected Monday it had concluded determination was a worldly weakness owed to "the accrued complexity of the interior accounting and power environment", arsenic good arsenic its ongoing migration efforts and the constricted clip to amusement its post-merger integrated power situation was moving arsenic it should.

(Editing by Kirsten Donovan)