Lloyds“(LSE: Lloy) The price of shares has increased by an impressive 47.2% over the past year. And yet, at 63.1p per share, FTSE 100 The bank still looks affordable in various value indicators.

With price ratio (P/E) 9.3 times and 5.4% dividend profitability for 2025 AND Expected cash prizes.

Finally, with multiple prices to the book just below one, Bank also trades with a tiny discount to the value of its assets.

Risky business

But does Lloyds really share the opportunity that will appear for the first time? I’m not convinced.

On the other hand, revenues can improve, and bad loans fall with a decrease in interest rates. But the risk of profits (as a consequence refunds of shareholders) remain significant, including:

• Slaging margins as interest rates decrease.
• A penniless sales growth has been prolonged when the UK’s economy tries to develop.
• Additional revenues and margins pressure when competition intensifies in different sectors.
• High costs of claims if it is found guilty of incorrectly selling car loans by the regulatory authority.

Compared to this entanglement, I believe that Lloyds shares will continue to provide penniless returns (its annual average is 1.1% from the beginning of 2015).

So although they are affordable, I think that in the long run they can cost me as an investor of the package.

I look east

I prefer to invest my difficult -earned cash in HSBC (LSE: HSBA) Instead, he shares.

He faces the same industry pressure as Lloyds, such as the growing competition and pressure of interest rates. His vast operations in China also expose the real estate market in the country to the slot.

However, its significant exposure of emerging markets also provides long -term possibilities. I expect the profits to fall because the growing wealth and boost in population are complemented by financial services.

The bank said “In the average and long-term periods, we still expect that the increase in customer loans increased during the year“.

Analysts from McKinsey & Company expect that the corporate and investment banking sector in Asia will boost by 7% per year between 2022 and 2027, continuing the rapid expansion of recent years.

HSBC cuts its non -Asian operations to better focus attention and resources on these markets of balmy growth. Last month, he announced that his plans were tugging in investment banking in the United States, Great Britain and Europe when he refuses a global trail.

8% annual refund

I am convinced that this will lead to exceptional phrases of shareholders in the coming years.

Earlier results are not a guarantee of future profits. But the average annual return with 8% in HSBC shares over the past decade illustrates potential profits that investors can achieve.

This is better than 1.1% return on Lloyds in the same period. It is also better than 6.5% of the return provided by the wider FTSE 100.

I do not think that the potential of HSBC bubbles is reflected at a low price of shares. It trades at an angle P/E 8.6 times, which is even lower than in the Lloyds ratio.

5.8% of the bank’s dividend also gives the value of investors something that you can scream.

Although this is also not without risk, I think that HSBC shares are worth a close look at today’s price of 897.2 pence.