“Disruption from euro zone stresses are naturally taking their toll on both private banking and investment banking activity,” Morgan Stanley analysts Huw van Steenis and Hubert Lam said in a note.

The Wall Street firm is “overweight” Credit Suisse. It’s earnings-per-share forecast for the 2010 calendar year is SFr5.76, and SFr6.76 for 2011. It has a price-earnings estimate of 7.6 times earnings for 2010 and 6.5 times earnings for 2011. That compares with an earnings per share forecast on UBS of SFr1.87 for 2010 and SFr2.12 on 2011.

The note said a threatened increase in global financial regulation of banks was a “key risk” to Credit Suisse and its peers, although it was hard at this stage to reach a definite conclusion on the impact on the firm’s business.

In arguing why it kept an overweight stance on Credit Suisse, Morgan Stanley said the “performance of the private bank remains an important source of earnings strength and the continuing ability of CSG to gather new money is encouraging”.

Among other details, Morgan Stanley’s forecasts showed Credit Suisse is forecast to make a year-on-year rise in pre-tax profit of 6.4 per cent in 2010 and a rise of 22.8 per cent in the following year. Its pre-tax profit margin is seen at 29.8 per cent this year and 31.9 per cent in 2011.