10 Best Bank Stocks to Buy for 2025: A Look at Promising Investments

As we move into 2025, investors are keenly analyzing the banking sector, looking for stocks with significant upside potential. According to analysts, solid economic growth and a favorable regulatory environment are likely to bolster loan growth for banks. This optimism is partly fueled by expectations of a potential revival in mergers and acquisitions, which could enhance the fee revenue of investment banks.

However, the financial landscape is not without uncertainties. Ongoing concerns regarding U.S. tariff policies and federal employment levels could pose risks to some bank stocks, especially if economic conditions deteriorate. Therefore, prudent bank stock selection will be paramount this year. Here is a look at ten of the best bank stocks to consider for 2025, as highlighted by analysts from CFRA.

Top Bank Stocks with Strong Investment Potential

1. JPMorgan Chase & Co. (JPM)

JPMorgan Chase, one of the largest global financial services firms, boasts nearly $4 trillion in assets under management. Analyst Kenneth Leon emphasizes that the bank’s performance in 2025 will closely correlate with the strength of the U.S. economy, as approximately 75% to 80% of its revenue is generated domestically. JPMorgan is expected to benefit from a growing number of midsize companies choosing to convert their banking services to larger firms. With a "buy" rating and a price target of $310, JPM stock, which closed at $239.11 as of March 19, 2025, shows a potential upside of 29.6%.

2. Bank of America Corp. (BAC)

As one of the largest commercial and investment banks in the U.S., Bank of America is well-placed to capitalize on the pro-business policies of the current administration. Leon predicts a rebound in investment banking activity will fuel the bank’s growth in 2025. The institution has solid global rankings in investment banking fee revenue and is expected to surpass analyst estimates in net interest income (NII). The stock has a "buy" rating with a price target of $53, compared to its closing price of $42.21, indicating a potential upside of 25.5%.

3. Wells Fargo & Co. (WFC)

Wells Fargo, one of the U.S.’s largest banks, has faced its share of challenges in recent years. Nonetheless, analyst Alexander Yokum expresses confidence in CEO Charles Scharf’s ability to steer the bank through its restructuring initiatives. With investments in the credit card sector paying off, and a return on tangible common equity expected to improve, CFRA provides a "buy" rating and a price target of $94 for WFC stock, currently at $72.76—suggesting a potential upside of 29.1%.

4. HSBC Holdings PLC (HSBC)

HSBC stands out as a prominent global banking provider with over 40 million customers. The bank’s substantial presence in Asia positions it favorably amidst a bullish outlook for the region’s banking growth. Analyst Firdaus Ibrahim believes that the bank’s efforts to divest underperforming assets will enhance profitability and revenue growth. HSBC has received a "buy" rating with a price target of $69, reflecting a possible upside of 17.2%, as the stock closed at $58.85. ### 5. Royal Bank of Canada (RY)
Recognized as Canada’s largest commercial bank, the Royal Bank of Canada has a longstanding record of robust return on equity. With promising operational synergies and strategic management of its U.S. division, City National, the bank is set to see fewer pressures on deposit pricing. The stock is rated "buy" with a price target of $144, positioned for a 26.1% upside from its closing price of $114.22. ### 6. Citigroup Inc. (C)
As a diversified financial services company, Citigroup has executed a significant turnaround strategy and stands poised for institutional banking growth. Leon mentions the planned exit from consumer banking in Mexico as a strategic move that will streamline operations. With a "buy" rating and a target price of $90—up from a close of $71.44—Citi’s stock has an estimated upside of 25.9%.

7. PNC Financial Services Group Inc. (PNC)

As a key player in asset management and corporate banking, PNC is expected to boost its net interest margin significantly. Analyst Yokum projects that the bank will exceed consensus revenue expectations thanks to falling funding costs and rising loan growth. PNC has been assigned a "strong buy" rating with a target price of $265, offering a remarkable potential upside of 52.4% from its recent close of $173.83. ### 8. NatWest Group PLC (NWG)
NatWest, a leading retail and corporate bank in the U.K., has demonstrated a commitment to improving profitability through digital transformation and efficiency measures. Ibrahim notes that the bank’s cost-to-income ratio has dramatically decreased, indicating operational improvements. With a modest potential upside of 5.6%—targeting $9.25 from a close of $8.75—NatWest also positions itself for stability in the coming year.

9. M&T Bank Corp. (MTB)

M&T Bank has exhibited solid growth patterns in previous years, which analyst expectations suggest will continue into 2025. Projected growth in net interest income, combined with loan growth, renders the bank attractive. M&T Bank holds a "buy" rating with a target price of $183, suggesting a 46.8% upside potential from its March 19 close of $124.65. ### 10. Fifth Third Bancorp (FITB)
Fifth Third Bancorp is focused on expanding its services and enhancing profitability. Analysts expect that ongoing strategic initiatives will yield significant benefits, placing the bank’s shares at a price target of $57, up from $38.11, equating to a potential upside of 49.5%.

Conclusion

As analysts project a strong year for the banking sector in 2025, investors are encouraged to consider the aforementioned stocks characterized by significant upside potential. While navigating uncertainties such as regulatory changes and market conditions, informed stock selection in banking could yield considerable returns.

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