Broker snap: Barclays best of a bad bunch

2nd Dec 2009 13:19

UK banks have been under the cosh since news of the Dubai debt situation broke last week but their shares are still not cheap enough, according to Credit Suisse.'UK bank share prices have fallen 10% in the last two weeks, but we calculate that they still imply long-term ROTE [return on tangible equity] at 11%, in line with our expectations and similar to the 1970-80s,' said Credit Suisse analyst Jonathan Pierce.In view of the risks associated with the whole of the banking industry at the moment, the Swiss bank remains cautious about the sector. 'In our view, investors wanting exposure should buy Barclays, but even here we believe market estimates remain too high.'