Lloyds Banking Group PLC’s (LON:LLOY) (LSE:LLOY.L) share price has gained 11.6% so far in 2017. In my view, there could be more gains to come in the long run. I feel Lloyds has made the required improvements to its business so as to register growing profitability in the long term.
However, I also think there could be a period of uncertainty ahead for the bank. Brexit talks will commence shortly and I think this could mean investors are more nervous about UK banks such as Lloyds. In spite of this, I think Lloyds has the financial strength to survive and register relatively good share price gains in the long run.
The Barclays PLC (LON:BARC) (LSE:BARC.L) share price has risen 3.5% so far this year. I feel Barclays has potential for more impressive gains further down the line. I feel its forecast increase in dividends could be a key factor to improve investor sentiment in the stock. I also believe its strategy of strengthening its balance sheet and capital position could improve its risk-reward opportunity. With double-digit earnings per share growth forecast in FY2017 and FY2018, I think Barclays could be a good relative performer.
Standard Chartered PLC (LON:STAN) (LSE:STAN.L) shares have gained 10.2% this year. One reason I’m optimistic about Standard Chartered’s future share price is its position in Asia. I’m optimistic about the outlook for the Asian economy, since China in particular has growth potential in my view within financial services. Increasing wealth and consumerism could lead to higher demand for retail banking, where I feel Standard Chartered may be in a position to benefit.
HSBC Holdings plc (LON:HSBA) (LSE:HSBA.L) has a similar opportunity in my view. Its share price has risen only 1% so far in 2017. However, I think its cost-reduction programme could provide margin support and lead to an improved efficiency measure in future years. HSBC’s diversity may count for it if Brexit causes uncertainty towards UK stocks. Its position within Asia means it has growth potential in terms of higher demand for financial products in China in my opinion. This could help its share price to perform relatively well in the long run in my view.