Interest rate debates inside the US Federal Reserve are back in focus after Minneapolis Fed President Neel Kashkari signalled support for gradual hikes. For large financial stocks, that kind of shift can change the economics of lending, balance sheet risk, and investor sentiment. This article looks at a curated screener of sizeable financial companies across the US, UK, Canada, Australia, and New Zealand that meet health, value, and risk filters and are exposed to this latest policy twist. You will see three stocks from the list that appear positively exposed to the news and how each might fit, or not, in your playbook.

Great-West Lifeco (TSX:GWO)

Overview: Great-West Lifeco is a large Canadian financial group that provides life and health insurance, retirement savings plans, wealth and asset management, and reinsurance across Canada, the United States, and Europe, serving individuals, employers, and institutional clients through brands like Empower, Canada Life, and Irish Life.

Operations: Great-West Lifeco generates most of its revenue from Canada at about CA$12.4b, followed by Europe at CA$8.6b, Capital and Risk Solutions at CA$5.6b, the United States at CA$6.2b, and Corporate activities at CA$0.4b.

Market Cap: CA$83.1b

Great-West Lifeco stands out in this screener because it couples interest rate sensitivity with a broad, fee-oriented retirement and wealth franchise. This includes Empower, which recently passed US$2t in workplace assets and is growing base earnings at 34% year on year. The business is producing high-quality earnings and a solid 19.3% ROE, while buying back shares and paying a regular dividend. This combination can appeal if you want both income and capital return potential in a higher rate setting. The flip side involves integration risk around Empower, a higher risk funding structure without customer deposits, and pressure from fee competition. If you want to understand how these moving parts interact with potential margin tailwinds from rising rates, this is where the deeper work starts.

Great-West Lifeco’s fee-rich retirement engine and 19.3% ROE raise a clear question: How much of that strength is already reflected in the numbers, and what the analyst forecasts for Great-West Lifeco could reveal about the next phase of this story.

Sun Life Financial (TSX:SLF)

Overview: Sun Life Financial is a global financial services company that offers life and health insurance, retirement savings plans, investment products, and asset management solutions to individuals, employers, and institutions across North America, Asia, and several other international markets.

Operations: Sun Life Financial generates most of its revenue from the United States at about CA$13.7b and Canada at about CA$11.9b, with additional contributions from Sun Life Asset Management at CA$6.9b, Asia at CA$2.7b, Corporate activities at CA$0.4b, and consolidation adjustments of CA$0.7b.

Market Cap: CA$64.8b

Sun Life Financial offers a mix of global insurance, asset management, and health benefits that can be sensitive to higher interest rates, which tend to lift yields on the fixed income portfolios backing its policies. The company is also focusing on Asia and health-focused products, while rolling out digital and AI tools aimed at keeping costs in check. U.S. Dental and public asset management have come under pressure, with earnings having declined recently and ROE at 12%, so execution on acquisitions and turnarounds is an important factor to monitor. For readers who want to assess how the balance between growth potential, funding risk, and valuation compares with current expectations, there is additional data available to explore.

Sun Life Financial has an earnings story that appears caught between pressure and potential. The next move may depend on the detailed analyst forecasts for Sun Life Financial, including one risk that could flip the script.

Equity Bancshares (EQBK)

Overview: Equity Bancshares is a Wichita based bank holding company that operates Equity Bank, offering a broad mix of traditional banking, mortgage, and wealth services to individuals, small businesses, and corporate clients across Arkansas, Kansas, Missouri, and Oklahoma.

Operations: Equity Bancshares generates all of its reported US$242.65m in revenue from the United States.

Market Cap: US$1.05b

Equity Bancshares is interesting right now because it links a straightforward community and commercial banking model to a rate backdrop that could widen net interest margins if funding costs stay under control. Management has been talking for years about positioning the balance sheet to do well when rates rise. Recent quarters show record loan production, an improved efficiency ratio, and solid net interest income alongside dividends and buybacks. The catch is a lower 4.3% ROE, prior one off losses, and ongoing credit and deposit competition risk that comes with being a regional lender. The key question for you is whether the current price and P/E already capture the potential benefit of higher rates and future M&A.

Equity Bancshares appears to be a margin story that the market has not yet fully connected to its regional footprint. The full 2 key rewards and 2 important warning signs could clarify whether current pricing is masking a key twist in the rate story.

The three stocks covered here are only a starting point. The full screen turned up 39 more financial companies with equally compelling rate and balance sheet stories inside the Financial Sector Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you so you can focus on the financial sector stocks that best fit your highest conviction ideas.

Take Control of Your Investment Journey

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.