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William P
Posted: 21 January 2025 18:37:40(UTC)
#1

Joined: 18/09/2018(UTC)
Posts: 295
I have shares in HSBA, BARC and STAN and all seem to have been on the charge that last while.

Why is this?

Is anyone else with bank shares taking profits?
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RT7
Posted: 21 January 2025 19:36:01(UTC)
#2

Joined: 18/12/2023(UTC)
Posts: 47
Why is this ?

Do you not read the press ?
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William P
Posted: 21 January 2025 19:44:00(UTC)
#3

Joined: 18/09/2018(UTC)
Posts: 295
RT7;331822 wrote:
Why is this ?

Do you not read the press ?


Generally no. I am too busy with other stuff
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John Bran on 18/02/2025(UTC)
RT7
Posted: 21 January 2025 19:48:27(UTC)
#4

Joined: 18/12/2023(UTC)
Posts: 47
Probably best sell your shares and buy trackers mate
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Johan De Silva on 21/01/2025(UTC), William P on 22/01/2025(UTC)
Johan De Silva
Posted: 21 January 2025 21:32:56(UTC)
#5

Joined: 22/07/2019(UTC)
Posts: 4,412

Thanks: 5917 times
Was thanked: 10140 time(s) in 3360 post(s)
I believe I was probably the biggest promoter of HSBC and STAN here last year, I did consistently mention the rationale with each post! It's not just banks but payment systems, insurance companies, and other financial institutions that handle large amounts of cash and benefit from net treasury income (NTI) are thriving. I think they can also skim off a greater spread in revenue from the interest rate when lending. With interest rates expected to remain higher for longer even after the cutting cycle, these services are performing exceptionally well and are still valued attractively, with rates unlikely to return to zero.

However, you may blame me and others if they tank in a recession so consider investing in a diversified world tracker that has 15% in financials, or even 30% if you choose VHYL. This strategy can give you an advantage over many here, as most actives are underweight in this sector. Financials provide a nice diversifier for the macro outlook of high rates, strong economy and de-regulation in the US.

Sector performance is steady daily:
https://www.bloomberg.com/markets/sectors

Bull case from Polar Capital Global Financials Trust plc:
https://www.polarcapital...balfinancialstrust.com/

Find this sector stuffy and boring? There should be anticipation for several UK bank IPOs this year. What could be a better time for financials to go public? For more information, follow the Private Equity thread.
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4 users thanked Johan De Silva for this post.
Phil 2 on 21/01/2025(UTC), Helen L on 22/01/2025(UTC), William P on 22/01/2025(UTC), ANDREW FOSTER on 22/01/2025(UTC)
malc1111
Posted: 22 January 2025 16:11:38(UTC)
#6

Joined: 02/12/2017(UTC)
Posts: 376

Thanks: 366 times
Was thanked: 529 time(s) in 224 post(s)
William P;331817 wrote:
I have shares in HSBA, BARC and STAN and all seem to have been on the charge that last while.

Why is this?

Is anyone else with bank shares taking profits?



I have all 3 , not in huge amounts but have done well and will be keeping them for the present
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2 users thanked malc1111 for this post.
Johan De Silva on 22/01/2025(UTC), William P on 22/01/2025(UTC)
Ian Eccles
Posted: 18 February 2025 05:32:15(UTC)
#7

Joined: 04/07/2021(UTC)
Posts: 1,076
: The Supreme Court has rejected Rachel Reeves’s attempt to intervene in the car finance scandal, dealing a blow to banks but a boost to millions of drivers.
_
The above is in todays paper, we will see if the banks come under pressure this morning following the news.
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Johan De Silva
Posted: 18 February 2025 07:27:22(UTC)
#9

Joined: 22/07/2019(UTC)
Posts: 4,412

Thanks: 5917 times
Was thanked: 10140 time(s) in 3360 post(s)
Ian, news like the above is the reason to to own international banks like HSBC and STAN.

Saying that my largest position is in Starling Bank in the UK, but I am not sure if car financing impacts B2B banks and being private probably insulated.
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Ian Eccles on 18/02/2025(UTC)
Ian Eccles
Posted: 18 February 2025 07:44:24(UTC)
#10

Joined: 04/07/2021(UTC)
Posts: 1,076
I have STAN in my portfolio, owned it since 2013 when I bought three lots paying £14.734/share , £15.046/share and £14.669/share.Over the years I have collected the dividends, which by the way are not the best in the industry and looking to sell one day when they reach the heights of £12/share.This is now the only bank share I hold .
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Johan De Silva on 18/02/2025(UTC)
Johan De Silva
Posted: 18 February 2025 08:56:02(UTC)
#11

Joined: 22/07/2019(UTC)
Posts: 4,412

Thanks: 5917 times
Was thanked: 10140 time(s) in 3360 post(s)
HSBC has a superb yield of 5.38% and a P/E under 10 with geographic diversification. It is an all in one package.

Right now, low risk financials that will naturally grow from NTI is still cheap, considering they have had 1 year growth of 30 to 100%, I still have friends in 3BAL a 3 times leverage European bank ETF, a bit late to buy that one now but the low risk theory was sound. Just lever low risk up like Private Equity do. Using similar low risk principles there are loads of opportunity out there. All barbelled with bonds and bond-proxies.
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