RBC CM: Banks Should Consider Suspending Dividends

RBC Capital Markets, 9 March 2009We continue to believe that it is too early to buy Canadian bank shares. Canadian banks have higher capital than many of their global peers and their capital levels and profitability would allow them to sustain dividends if loan losses were in line with the early 1990s. However, we find it hard to recommend buying the banks� shares today as (1) valuations are well