For those Fools wanting to become ASX millionaires, here are 3 top banking share prices that are set to rebound in the second half of 2019.
While we don't all have time to do our Warren Buffet-esque research on each company's merits, here are some general pointers on why I think these 3 ASX banking stocks could land in the buy zone in 2019.
Commonwealth Bank of Australia Ltd (ASX: CBA)
The CBA share price has been the top performer out of its Big Four peers so far in 2019, climbing more than 15% higher in the last 6 and a half months.
CBA emerged relatively unscathed from the 2018 Financial Services Royal Commission and remains well-placed to rebound, having reduced its wealth management exposure and focused on core areas under the guidance of its CEO Matt Comyn.
I think CBA could be set to exceed its current 52-week high of $83.99 by the end of the year, particularly if it can post another strong profit result in the November reporting season.
Excluding dividends, the CBA share price has more than doubled since the GFC and offers a handy 5.25% dividend, which when reinvested could compound to a sizeable chunk of change in the next 10 years or so.
Macquarie Group Ltd (ASX: MQG)
Macquarie has a much lower retail banking presence than the Big Four and this has been a key to it largely remaining outside of the Royal Commission fallout.
Macquarie's asset management and investment banking arms have continued their recent profitable run, which has seen Macquarie posting strong profits under ex-CEO Nicholas Moore and new chief Shemara Wikramanayake.
While Macquarie doesn't pay a full-franked dividend like the other major banks, I believe it has significant upside potential in the second half of the year – particularly if favourable equity conditions persist both domestically and overseas.
The Macquarie share price has increased six-fold since early 2012 and I wouldn't be surprised to see it repeat similar growth in the next decade or so – meaning it deserves a place as a potential ASX millionaire-maker.
National Australia Bank Ltd (ASX: NAB)
The NAB share price has been volatile in 2019 as the Aussie bank was hit hard by the 2018 Royal Commission and cut its dividend to maintain its regulatory capital requirements.
However, NAB led the S&P/ASX 200 (INDEXASX: XJO) index yesterday after appointing ex-Bank of Scotland CEO Ross McEwan as its new CEO, replacing interim CEO Philip Chronican who is set to become Chairman.
I think with a leaner and more focused operational structure, NAB could be set to unlock its growth and reach parity with its Big Four peer share prices in the second half of the year.
Despite the cut, NAB's 6.6% dividend is still king among its peers, meaning it could be a great buy at $27.50 per share with strong upside potential in the next 5 or so years.
