ASX financial shares are outperforming in 2024, with the S&P/ASX 200 Financials Index (ASX: XFJ) up 32.65% in the year to date (YTD).

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has risen 10.53% (excluding dividends).

Financials are on track to be the second best-performing market sector of 2024 behind technology.

ASX financial shares include bank shares, insurers, investment managers, payments providers, and financial services companies.

6 outstanding ASX 200 financial shares of 2024

The best-performing ASX 200 financial share YTD is buy now, pay later (BNPL) stock Zip Co Ltd (ASX: ZIP). The Zip share price has lifted a staggering 412.9% since January.

Here are five other top-performing ASX 200 financial shares in terms of price growth YTD:

• Pinnacle Investment Management Group Ltd (ASX: PNI) shares have increased 141.2%
• Hub24 Ltd (ASX: HUB) shares have lifted 113.8%
• HMC Capital Ltd (ASX: HMC) shares have risen 103.6%
• Netwealth Group Ltd (ASX: NWL) shares are up 97.4%
• Judo Capital Holdings Ltd (ASX: JDO) shares are up 94.0%

Here is the YTD price growth of the 10 biggest ASX financial shares in order of market capitalisation:

• Commonwealth Bank of Australia (ASX: CBA) shares are up 35.9%
• National Australia Bank Ltd (ASX: NAB) shares have lifted 25.7%
• Westpac Banking Corp (ASX: WBC) shares are up 42.6%
• ANZ Group Holdings Ltd (ASX: ANZ) shares are 20% higher
• Macquarie Group Ltd (ASX: MQG) shares have increased 26.0%
• QBE Insurance Ltd (ASX: QBE) shares are up 34.2%
• Suncorp Group Ltd (ASX: SUN) shares have risen 44.3%
• IAG Insurance Group Ltd (ASX: IAG) shares have lifted 55.1%
• ASX Ltd (ASX: ASX) shares have increased 7.8%
• Washington H Soul Pattinson & Company Ltd (ASX: SOL) shares have lifted 7.1%

Which ASX financial shares are worthy New Year investments?

Despite many ASX financial shares experiencing significant share price rises in 2024, there are still good buys among them, according to the experts.

Among the funds and asset managers, Goldman Sachs has a buy rating on HMC Capital with a 12-month share price target of $8.94. HMC Capital shares are trading at $12.38 on Friday, down 0.16%.

Morgans has an add rating on investment management company, Pinnacle.

The broker increased its 12-month share price target to $27.25 after the company conducted a $400 million capital raise to buy a stake in two new offshore affiliates.

The Pinnacle share price is trading at $24.51, down 0.9% today.

Among the ASX insurance shares, Macquarie has an outperform rating on the market's biggest insurance stock, QBE. Its 12-month price target is $21.30.

Goldman also likes QBE shares. It has a buy rating and a $20 price target on the insurer.

The QBE share price recently hit a 14-year high of $20.32. QBE shares are currently $19.74, down 0.9%.

Goldman also likes Suncorp shares. It has a buy rating on the insurer and a 12-month price target of $19.20. At the time of writing, the Suncorp share price is $19.83, up 0.35%.

Ord Minnett rates Medibank Private Ltd (ASX: MPL) shares a buy with a price target of $4.25 apiece. Medibank shares are trading for $3.84, up 0.39% on Friday.

Wilson Asset Management portfolio manager Tobias Yao expects continued 'strong momentum' in the Zip business. He sees potential for further earnings upgrades and says interest rate cuts will be a tailwind.

Ord Minnett also rates Zip shares a buy with a 12-month price target of $3.60.

The Zip share price is one of the biggest fallers of the ASX 200 today, down 6.05% to $3.19.