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I think they will beat the FTSE 100 for the next 3 years at least. I hold all of the above with the exception of RBS (state owned, questionable management, v. difficult to turnaround). They are all fundamentally great businesses with strong customer bases, networks, management, staff, etc. Much of the profit has been hidden by provisions and fines (most of which is a government redistribution of monies) which are now coming to an end.

After 4 years of people predicting the end of the world the markets are finally realising that banks still have a role, have solid balance sheets and have motors which can generate extraordinary profits. Lloyds shares were at 25p last year I think they will top a £1 by the end of the year or early 2014 and then press on to £2. HSBC and Standard will be less dramatic but will still have strong double digit growth and Barclays is perhaps the most difficult to predict because of the changes it has seen to its business model and management ethos.

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