Ten Best Bank Stocks to Invest in for 2025

As we approach 2025, a significant focus has emerged on identifying undervalued bank stocks that have the potential for substantial growth. Many analysts believe that the combination of solid economic growth and a favorable regulatory environment could drive impressive loan growth for banks. Furthermore, a rebound in mergers and acquisitions might help investment banks increase their fee revenues.

In a landscape where uncertainty regarding tariff policies and labor dynamics exist, selecting the right bank stocks is more critical than ever. According to research from CFRA, here are ten bank stocks projected to be exceptional investments for 2025. ## 1. JPMorgan Chase & Co. (JPM)
JPMorgan Chase stands as one of the largest global financial services companies, with nearly $4 trillion in assets under management. Analyst Kenneth Leon suggests that a large portion of JPMorgan’s revenue (75% to 80%) is derived from domestic operations, tying its 2025 performance closely to the strength of the U.S. economy. The bank is poised to gain market share from midsize companies shifting towards larger banks for loans and services. CFRA rates JPM as a “buy” with a target price of $310, an increase from its closing price of $239.11 on March 19. ## 2. Bank of America Corp. (BAC)
Bank of America ranks among the largest commercial and investment banks globally, with significant wealth management service offerings. Leon speculates that pro-business policies from the Trump administration could spur a recovery in investment banking activities by 2025. The bank is also expected to exceed consensus estimates for net interest income and noninterest investment banking income in the year. CFRA assigns a “buy” rating for BAC with a price target of $53, up from its closing price of $42.21 on March 19. ## 3. Wells Fargo & Co. (WFC)
Wells Fargo, a major U.S. bank, has been the focus of restructuring initiatives under CEO Charles Scharf. Analyst Alexander Yokum indicates that the bank’s return on tangible common equity is likely to improve from 2024 levels, supported by the growth of its credit card operations. There is hope that Wells Fargo’s asset cap restrictions could be lifted in 2025. CFRA maintains a “buy” rating and sets a price target of $94 for WFC, up from $72.76. ## 4. HSBC Holdings PLC (HSBC)
As one of the world’s largest banking and financial service providers, HSBC boasts over 40 million customers. Analyst Firdaus Ibrahim highlights the bank’s strong presence in Asia, making it an appealing investment given long-term growth forecasts for banking in the region. With a focus on asset management and private banking, CFRA provides a “buy” rating and $69 price target for HSBC, which closed at $58.85 on March 19. ## 5. Royal Bank of Canada (RY)
The Royal Bank of Canada is the largest commercial bank in Canada, known for its resilience during economic downturns. Yokum notes the bank’s consistent high return on equity and anticipates a rebound in earnings driven by merger-related synergies and improved performance from its City National operations. CFRA rates RY as a “buy” with a price target of $144, rising from its closing price of $114.22. ## 6. Citigroup Inc. (C)
Citigroup is a comprehensive global bank with diverse financial services. Leon believes that Citi has a strong position in institutional banking and has been effective in its turnaround strategy. The bank is expected to benefit from its market leadership in technology platforms. A planned exit from consumer banking in Mexico is also anticipated to reduce costs. CFRA provides a “buy” rating and a price target of $90 for C, which closed at $71.44. ## 7. PNC Financial Services Group Inc. (PNC)
PNC is among the largest banks in the U.S., providing asset management and banking services. Analyst Alexander Yokum expects the bank to improve its net interest margin and beat earnings expectations, contributed to by declining funding costs and increased loan growth. CFRA assigns a “strong buy” rating with a price target of $265 for PNC stock, which closed at $173.83. ## 8. NatWest Group PLC (NWG)
As a prominent U.K. corporate and retail bank, NatWest has made notable strides through digital transformation and cost management, which have enhanced its profitability. Analyst Firdaus Ibrahim points out the bank’s low loan impairment rate and robust capital structure as indicative of its sound management strategies. Despite its conservative growth outlook, NatWest holds promise for the coming years.

9. M&T Bank Corp. (MTB)

M&T Bank specializes in traditional banking services within its regional markets. Analysts consider the bank’s strong fundamentals and regional penetration as advantageous for future growth, especially in managing loan portfolios and adapting to market changes. A combination of rising interest rates and effective loan pricing should support M&T’s upward trajectory.

10. Fifth Third Bancorp (FITB)

Fifth Third Bancorp is well-positioned within the U.S. banking landscape, focusing on consumer banking and wealth management. Given expectations for improved loan growth and rising interest margins, analysts view Fifth Third as having strong potential for capital appreciation.

As markets evolve, the landscape for bank stocks presents both challenges and opportunities. Investors are encouraged to evaluate these considerations when planning their financial strategies for 2025 and beyond.