(Bloomberg) -- UBS AG is a better bet than its Zurich neighbor Credit Suisse Group AG even though it’s more exposed to legal risks, according to JPMorgan Chase & Co. analysts.

UBS could nearly quadruple its litigation reserve to 7 billion Swiss francs ($7.8 billion) by 2016 and still have a common equity ratio of 13%, Kian Abouhossein and Amit Ranjan, banking analysts at JPMorgan in London, said in a note today. They included a dividend yield of 10.3% in this estimate.

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