10 of the Best Bank Stocks to Buy for 2025: Expert Picks and Analysis
As 2025 approaches, investors are keenly watching the banking sector for promising opportunities amid evolving economic and regulatory landscapes. Market analysts suggest that solid economic growth combined with a more supportive regulatory environment could fuel significant loan growth for banks this year. Additionally, a resurgence in mergers and acquisitions activity is anticipated to boost fee income for investment banks. However, ongoing uncertainties—including trade policy tensions and federal workforce reductions—pose risks that could affect bank credit quality if the U.S. economy tips into a recession.
In this context, stock selection in the banking sector is more critical than ever. According to research by CFRA, the following 10 bank stocks stand out as attractive buys for 2025 due to their strategic positioning, growth potential, and undervaluation:
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JPMorgan Chase & Co. (Ticker: JPM)
JPMorgan Chase is among the world’s largest financial institutions, managing close to $4 trillion in assets. Analyst Kenneth Leon highlights that JPMorgan’s performance in 2025 will closely track the strength of the U.S. economy, which drives about 75% to 80% of its revenue. Nevertheless, the bank is gaining market share across various segments, benefiting from more midsize companies shifting loans and services to larger institutions. CFRA assigns a "buy" rating with a $310 price target, while the stock closed at $239.11 as of March 19. 2. Bank of America Corp. (Ticker: BAC)
Bank of America holds a leading position in U.S. commercial and investment banking and wealth management services. Pro-business policies are expected to spur investment banking recovery, with the bank ranking third globally in investment banking fee revenue. Analyst Leon expects Bank of America to surpass estimates in net interest income (NII) and investment banking income, key drivers of organic revenue growth. The stock has a "buy" rating and a $53 price target, closing at $42.21 on March 19. 3. Wells Fargo & Co. (Ticker: WFC)
Wells Fargo is a major U.S. lender with a focus on domestic markets. Analyst Alexander Yokum is optimistic about the bank’s potential to improve on its previous 13.4% return on tangible common equity. CEO Charles Scharf’s restructuring and investments in the credit card business have yielded growth, and the anticipated lifting of Wells Fargo’s asset cap restriction could unlock further shareholder value. CFRA rates Wells Fargo as a "buy" with a $94 price target, while the stock closed at $72.76. 4. HSBC Holdings PLC (Ticker: HSBC)
HSBC is a global banking powerhouse with over 40 million customers. Analyst Firdaus Ibrahim points to the bank’s significant exposure to Asia, a region with strong long-term banking growth prospects. With expected declines in interest rates, HSBC’s asset management and private banking fee income should support revenue expansion. Additionally, the bank has streamlined operations by divesting underperforming businesses. CFRA gives HSBC a "buy" rating and $69 price target, with shares closing at $58.85. 5. Royal Bank of Canada (Ticker: RY)
As Canada’s largest commercial bank and owner of U.S.-based City National, Royal Bank of Canada boasts a history of top-tier return on equity and resilience through economic downturns. Analyst Yokum expects merger synergies and City National’s performance to drive earnings growth, aided by reduced deposit pricing pressures and cost-cutting. The stock carries a "buy" rating with a $144 price target and closed at $114.22. 6. Citigroup Inc. (Ticker: C)
Citigroup’s diversified global operations position it well for institutional banking growth. The bank has effectively executed a turnaround strategy, focusing on leadership in technology platforms and corporate treasury services. Plans to exit consumer banking in Mexico are expected to streamline the business and cut costs. Analyst Leon projects 4.1% revenue growth in 2025, supporting CFRA’s "buy" rating and $90 price target. Shares closed at $71.44. 7. PNC Financial Services Group Inc. (Ticker: PNC)
PNC offers asset management alongside traditional and institutional banking services. Analyst Yokum expects the bank’s net interest margin to rise from 2.75% to nearly 3% by year-end 2025, with net interest income likely to beat consensus expectations. Factors such as declining funding costs and accelerating loan growth underpin a "strong buy" rating and a $265 price target. PNC closed at $173.83. 8. NatWest Group PLC (Ticker: NWG)
NatWest stands as a leading U.K. retail and corporate bank. Its ongoing digital transformation and disciplined growth approach have improved operational efficiency considerably, reducing the cost-to-income ratio from 74% in 2020 to 53.4% in 2024. Analyst Ibrahim highlights active balance sheet management as key to boosting profitability. The stock holds a "buy" rating with a 5.6% upside potential. -
M&T Bank Corp. (Ticker: MTB)
M&T Bank is recognized for steady performance and regional banking strength. The bank’s disciplined management has positioned it for growth, benefiting from increasing loan demand and improved net interest margins. CFRA assigns M&T Bank a "buy" rating with a notable upside forecast of 46.8%. -
Fifth Third Bancorp (Ticker: FITB)
Fifth Third Bancorp has demonstrated strong earnings momentum thanks to improving loan growth and cost efficiencies. Analyst insights suggest the bank is well-positioned to capitalize on favorable interest rate environments and economic conditions, with a "buy" rating and a 49.5% upside potential.
Conclusion
Despite some macroeconomic uncertainties, these ten bank stocks represent compelling investment opportunities for 2025. With solid fundamentals, growth strategies, and promising valuations, they are poised to benefit from an improving economy, regulatory tailwinds, and a potential pick-up in merger and acquisition activities. Investors should consider these options carefully as part of a diversified portfolio strategy.
Investors are encouraged to monitor evolving market conditions and consult with financial advisors to align these insights with their individual investment goals.