HSBC Holdings P L C (HSBC)

He is light in Canadian banks and has been looking at European banks and this one is included. An attraction is their exposure to China and other emerging markets. He likes buying things when other people don’t want to. English banking rules, but big exposure in emerging markets.

Trades below book, emerging markets exposure, but you are better off owning a US bank because there is more upside. BAC, JPM, GS, UBS even, for example.

(A Top Pick May 2/13. Down 1.68%.) Emerging markets just haven’t had a good year. Although some people think of this as a big European bank, over half of their profits are coming out of Asia. He is still buying. The operational side has been very solid. They continue to do all the right stuff. Yield of about 4.5% and is quite safe.

You are getting a piece of the global business. But there is not a lot of net growth compared to US banks. Not the ideal investment. Although it does have a stable dividend and there is probably not a lot of downside. You could buy below $48 for a trade.

(Top Pick Dec 13/12, Up 10.94%) Canadian banks had a good run, but this bank is trailing the group. The US banks are starting to do better. This one is well situated in Asia. He still likes it and would buy it. Thinks it will break out to the top, not the bottom.

More of an Asian bank nowadays. Reasonable valuation and high dividend yield relative to other global banks. A mega cap so you are not going to double your money. A core holding that will enjoy the growth in Asia over the next 5 to 10 years. A safe way to get Asian exposure.

European and global banks certainly looks like they will have some upside heading into 2014. You are getting exposure in a wide variety of European economy and emerging markets.

This stock has done nothing for a year but getting better positioned in Asia. The yield is safe and they are doing a pretty good job of keeping costs down. This is an opportunity that is being passed over and shouldn’t be. It is a pretty good stock with great management, over 50% of profits coming out of Asia. Largest stock in the Hong Kong market.

One of the few banks that did not blow themselves up. It is still below where it was after the recovery from the financial crisis. Stick with it. Decent yield. He would not move to a US bank.

Believes this was the only large cap British bank that did not cut their dividend. Had some struggles during the recession. Very good balance sheet. The UK is starting to exit the recession and, given the strength of the London capital markets, an increase in interest rates is going to create a lot of employment in London, which will be good for this bank. Also, exposed globally.

(A Top Pick Nov 14/12. Up 13.16%.) Still a Buy. The big financials in the Far East haven’t taken off yet.

Not his favourite stock. He doesn’t like global mega-banks. They always seem to get into problems due to their size and scale.

Have been doing a lot of cost cutting because they have been caught in the Libor scandal. Been trying to find ways to raise cash for paying expected future fines. Standard Charter (STAN-LSE) and this one are the 2 international banks that he could live with as an investment. Their earnings are growing a little bit faster than North American or European banks because of their global exposure. It’s okay as an investment. Doesn’t think the dividend yield is going to hang around at 8% too much longer. Will probably have to reduce the dividend payout in the near-term.

One of the good things about this is it is a behemoth and is pretty much everywhere. Didn’t blow up during the global financial crisis. Had a risk management culture, which a lot of banks didn’t. Thinks they are going to return to their roots where they are going to start to look at the trade finance, which is the import/export business. Any increase in the interest-rate to going to benefit this company. It will be the low risk play in terms of UK banks.

One of his bigger positions. He really likes it. No government assistance, 55% of profits out of Asia, focused on Asian growth. It is in so many countries but he thinks they have it turned. It has lots of room to go and is a well run company. They got rid of divisions that did not support their strategy.