UBS better play than Credit Suisse says JPMorgan


UBS could nearly quadruple legal reserves to CHF 7B ($7.8B) and still have a common equity ratio of 13% by 2016, say JPMorgan analysts Kian Abouhossein and Amit Ranjan, also including a sizable dividend in that estimate.

In contrast, Credit Suisse's (CS) common equity ratio drops to 9.3% - the lowest of the 17 global investment banks - thanks to the $2.6B U.S. tax evasion fine.

Credit Suisse's investment banking operation, notes the team, is more highly exposed to shrinking fixed income business, generating just 48% of revenue from equities vs. 68% at UBS.

On wealth management, UBS gets the nod because of its stronger position in fast-growing Asia.

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