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Credit Suisse Can Raise Dividend, Says Morgan Stanley - Report
Tom Burroughes
14 September 2009
Credit Suisse is among a few European banks which have emerged sufficiently unscathed from the financial turmoil to raise its dividend, analysts at Morgan Stanley said, according to Bloomberg. Last Friday’s published remarks by the US investment bank sent shares in Credit Suisse up as much as 2.6 per cent at one point. Analyst Huw van Steenis said the Swiss bank may pay a dividend of SFr2.5 a share for 2009 and SFr3 for 2010. “A handful of banks, including Credit Suisse, could raise dividends in 2010,” the Morgan Stanley analysts said in a note to clients today. “Most will take several years to hit new capital standards without raises.” Credit Suisse, which is Switzerland’s second-biggest bank and wealth management firm behind UBS, has suffered far less than its rival from the credit crunch, although it has not been entirely unaffected. The Morgan Stanley analysts have an “overweight” recommendation on bank’s stock and raised their share price target for Credit Suisse’s stock to SFr70 from SFr63.