3 Banks To Boost Your Finances: Standard Chartered PLC, Banco Santander SA And Royal Bank Of Scotland Group plc

Here’s why Standard Chartered PLC (LON: STAN), Banco Santander SA (LON: BNC) and Royal Bank Of Scotland Group plc (LON: RBS) could have bright futures.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Piggy bank

With the FTSE 100 getting ever closer to the key 7,000 points level, it may seem tougher than ever to find companies that still offer considerable upside.

However, one sector that still ticks the ‘value’ and ‘growth’ boxes is banking, with a number of banks having very bright futures.

Here are three that could make a positive contribution to your finances moving forward.

Standard Chartered

Despite reporting half-year profit that was 20% down year-on-year, Standard Chartered (LSE: STAN) is expected to bounce back in 2015 with a much stronger performance. Indeed, earnings are forecast to increase by 10% in 2015 and, despite this, the company trades on a highly attractive valuation. For example, its price to earnings (P/E) ratio is just 11.3, which is far lower than the FTSE 100’s P/E of 13.9.

Furthermore, when the P/E ratio and forecast growth rate are combined to give the price to earnings growth (PEG) ratio, Standard Chartered appears to have huge appeal. Its PEG of 1.0 indicates that growth is on offer at a very reasonable price.

Banco Santander

Not to be outdone by its sector peer, Santander’s (LSE: BNC) bottom line looks set to grow at a very rapid rate. For instance, the bank is expected to post earnings increases of 23% in the current year and 21% next year. Certainly, shares are priced for growth after their 13% gains since the turn of the year, with Santander currently trading on a P/E of 15.6. However, as with Standard Chartered, a low PEG ratio of 0.7 highlights their appeal as an attractively priced growth play.

With shares in Santander also offering a yield of 6.7%, they appear to offer considerable potential for a top notch total return over the medium term.

RBS

2014 has been rather disappointing for investors in RBS (LSE: RBS). That’s because shares in the bank are up just 3% since the turn of the year and have outperformed the FTSE 100 by just 1%. However, the current year is set to see RBS return to the black for the first time since the start of the credit crunch.  Furthermore, as recent results showed, write-downs are far less savage than they once were and this makes RBS’s current valuation appear to be hugely attractive.

With shares in the bank currently trading on a P/E ratio of 12.3 and offering growth potential of 7% in earnings next year, they seem to offer substantial upside potential over the medium term.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens owns shares of Royal Bank of Scotland Group. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Here’s how I’d follow Warren Buffett to start building passive income in 2025

Ben McPoland highlights one FTSE 250 firm with a strong competitive edge that he thinks can continue rewarding investors with…

Read more »

Investing Articles

Burberry shares: undervalued FTSE gems that are ready to rocket?

Burberry shares soared at the beginning of the week as the takeover rumour mill went into overdrive. Is Paul Summers…

Read more »

US Stock

Here are the latest share price forecasts for S&P 500 giant Amazon

Amazon has generated monster gains for investors over the last decade. And Wall Street analysts believe the S&P 500 stock…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

2 high-yield FTSE 250 shares I’d buy today — and 1 that I’d avoid

UK markets have felt some volatility after last week’s Budget and the FTSE 250 was no stranger to it. Our…

Read more »

Investing Articles

3 reasons the Rolls-Royce share price could soar over the next decade

Sustainable aviation fuel, narrow-body aircraft, and small nuclear reactors could all keep the Rolls-Royce share price climbing over the next…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

Here’s how much income I’d get if I invested my entire £20k ISA in cheap BT shares

BT shares are on the up but still cheap, while the FTSE 100 telecoms stock offers a good yield too.…

Read more »

Investing Articles

2 FTSE dividend shares yielding more than 6% with P/Es of less than 9!

Harvey Jones picks out two brilliant FTSE 100 dividend shares that yield more than 6% but are selling at strangely…

Read more »

Investing Articles

Up 105% in a year! Is this rocketing FTSE bank the perfect pick for my Stocks and Shares ISA?

Harvey Jones is drawing up a shortlist of stocks to purchase inside his Stocks and Shares ISA allowance. This FTSE…

Read more »