Standard Chartered
Having sailed through the financial crisis while many of its banking peers were on their knees, Standard Chartered (LSE: STAN) is now struggling to post bottom-line growth. In fact, a number of profit warnings have left the bank apparently searching for a new CEO after regulatory challenges and disappointing performance have caused market sentiment to wane.
Still, the Asia-focused bank is expected to increase its bottom line by an impressive 11% next year and, looking further ahead, it still has tremendous growth potential as a result of its significant exposure to fast-growing economies. As such, and while its short-term future could be somewhat volatile, its longer-term prospects appear to be very bright.
HSBC
One of the most appealing aspects of investing in HSBC (LSE: HSBA) (NYSE: HSBC.US) at the present time is its focus on cost cutting. This has the potential to significantly boost the bank’s bottom line and, while investor sentiment is at a low ebb following allegations that HSBC helped clients to evade tax, now could be a great time to buy a slice of it.
Certainly, the changes being made to the bank’s structure and operations will take time but, in the meantime, investors are being rewarded for their patience with a dividend yield of 5.9% which, while interest rates are so low, could cause investor sentiment to rebound and send the bank’s share price much higher.
Standard Life
It’s rare to find a stock that offers excellent growth prospects, which trades at a great price, and comes with a top notch yield. However, Standard Life (LSE: SL) appears to do just that. For example, it is forecast to increase its bottom line by an impressive 19% in the current year, followed by 18% next year. And, despite having such strong growth prospects, it trades on a price to earnings growth (PEG) ratio of just 0.7, which indicates that it offers growth at a very reasonable price.
Furthermore, Standard Life also has a very enticing yield, too. It currently pays out 4.4% as a dividend and, with dividends per share expected to grow by 7.3% next year, it offers a great real-terms increase in income. As such, it seems to be worth buying right now.
RSA
It’s been a difficult few years for RSA (LSE: RSA), with an accounting scandal and disappointing profitability hurting investor sentiment in the stock. And, having fallen by 10% in the last year alone, RSA now offers superb value for money.
For example, RSA trades on a price to earnings (P/E) ratio of just 12.5, which is considerably lower than many of its sector peers and, with its bottom line set to increase by 8% next year, it could be on the road to recovery.
Furthermore, with RSA having a forward dividend yield of 4.9%, it could prove to be a highly appealing income stock, which may help to boost investor sentiment and push its share price northwards.