10 of the Best Bank Stocks to Buy for 2025

As financial markets gear up for 2025, analysts suggest a promising outlook for certain bank stocks, characterized by solid economic growth and a favorable regulatory environment. These conditions are anticipated to provide banks with ample opportunities for loan growth and a rebound in mergers and acquisitions, which could boost investment banks’ fee revenue. However, the market remains cautious amid uncertainties, including potential fallout from tariff policies and considerations surrounding federal layoffs, hinting at possible credit risks if the U.S. economy slips into recession.

To navigate this complex landscape, CFRA has identified ten bank stocks with appealing upside potential for investors looking to capitalize on the banking sector’s trajectory in 2025. ## Top Bank Stocks with Strong Upside Potential

1. JPMorgan Chase & Co. (JPM)

Analysts project a significant upside for JPMorgan Chase, with an expected rise of 29.6%. The bank, boasting nearly $4 trillion in assets under management, generates the majority of its revenue domestically. Analyst Kenneth Leon emphasizes that JPMorgan is gaining market share across various banking segments and stands to benefit from midsize companies increasingly seeking out larger banks for services. CFRA maintains a "buy" rating with a price target of $310 per share, closing at $239.11 on March 19, 2025. ### 2. Bank of America Corp. (BAC)
Bank of America ranks among the largest U.S. commercial and investment banks, poised to harness recovery in investment banking activities due to pro-business policies from the previous administration. With a focus on net interest income (NII) as a significant driver of organic revenue growth, analyst Kenneth Leon predicts that Bank of America’s performance will exceed consensus estimates. The stock has a "buy" rating and is set with a price target of $53, closing at $42.21. ### 3. Wells Fargo & Co. (WFC)
Wells Fargo anticipates an improvement in its return on tangible common equity, supported by CEO Charles Scharf’s strategic vision for restructuring. Analyst Alexander Yokum highlights ongoing growth in the credit card sector and anticipates the lifting of asset cap restrictions, further enhancing the bank’s performance. With a "buy" rating, the price target is set at $94, with shares closing at $72.76. ### 4. HSBC Holdings PLC (HSBC)
HSBC, a global banking giant, is expected to thrive due to its strategic focus on the Asian market, which offers strong long-term growth potential. As interest rates decline, the bank’s asset management and private banking segments are set to gain momentum, enhancing profitability. CFRA rates HSBC as a "buy," with a price target of $69, recently closing at $58.85. ### 5. Royal Bank of Canada (RY)
The Royal Bank of Canada is noted for its robust return on equity and resilience during economic downturns. Analyst Alexander Yokum notes that synergy from mergers and a strong performance from its subsidiary, City National, will be key growth drivers. The stock, rated as a "buy," has a target price of $144, closing at $114.22. ### 6. Citigroup Inc. (C)
Citigroup is positioned well for growth in institutional banking, with an effective turnaround strategy in play. Analyst Kenneth Leon points to the bank’s leadership in technology platforms and planned consumer banking exit in Mexico for streamlining efficiency. Citigroup’s stock also holds a "buy" rating with a price target of $90, recently closing at $71.44. ### 7. PNC Financial Services Group Inc. (PNC)
PNC is on track to enhance its net interest margins, spurred by falling funding costs and strong loan growth. Analyst Alexander Yokum highlights optimistic projections for net interest income exceeding analysts’ expectations. CFRA rates PNC as a "strong buy" with a price target of $265, closing at $173.83. ### 8. NatWest Group PLC (NWG)
As a leading U.K. bank, NatWest is improving its operational efficiencies and profitability through a disciplined growth strategy and cost management, achieving a notable reduction in its cost-to-income ratio. While its upside potential at 5.6% is modest, it showcases strong fundamentals and a conservative approach.

9. M&T Bank Corp. (MTB)

M&T Bank is another stock with promising potential, bolstered by strong community ties and a reputation for prudent lending. The bank’s strategies position it favorably for growth in 2025, making it a potential candidate for investors looking for stability alongside growth.

10. Fifth Third Bancorp (FITB)

Fifth Third Bancorp is anticipated to witness a robust growth trajectory with expected increases in profitability, continuing to adapt to market demands and lending opportunities.

Conclusion

As we look ahead to 2025, the landscape for bank stocks is filled with opportunities, albeit intertwined with market uncertainties. Investors are encouraged to take a closer look at these ten bank stocks that analysts believe are well-positioned for growth as they navigate the evolving economic conditions. By carefully selecting stocks based on analysis and potential performance, investors can effectively position their portfolios to benefit from the anticipated recovery in the banking sector.

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