10 of the Best Bank Stocks to Buy for 2025

As 2025 approaches, analysts from CFRA have identified several bank stocks with significant upside potential, driven by expectations of robust economic growth and a favorable regulatory environment. With the backdrop of potential rebounds in mergers and acquisitions, these banking institutions are positioned for impressive loan growth and enhanced investor returns. Here’s a summary of the top ten bank stocks recommended for investors as they look forward to the coming year.

Economic Outlook and Investment Strategy

In light of the current economic landscape, which includes the lingering effects of executive policies and possible financial uncertainties, strategic stock selection within the banking sector becomes paramount. Analysts predict that banks are likely to benefit from an improved flow of credit and investment banking activities in 2025. Below are the ten banks deemed the best investment opportunities, complete with potential upside percentages.

Top Recommended Bank Stocks

1. JPMorgan Chase & Co. (Ticker: JPM)

   • Upside Potential: 29.6%
   • JPMorgan Chase, a dominant player in the global financial services arena with nearly $4 trillion in assets, is expected to see its performance closely linked to the strength of the U.S. economy. With a focus on expanding market share among midsize companies, JPMorgan is anticipated to leverage steady domestic revenue streams.

2. Bank of America Corp. (Ticker: BAC)

   • Upside Potential: 25.5%
   • As one of the largest U.S. commercial banks, Bank of America stands to benefit from a resurgence in investment banking activities spurred by pro-business policies. Analysts believe BAC’s net interest income will outperform consensus estimates, reinforcing its growth strategy.

3. Wells Fargo & Co. (Ticker: WFC)

   • Upside Potential: 29.1%
   • With ongoing restructuring initiatives underway, Wells Fargo is expected to enhance its return on tangible common equity. Analysts are optimistic that regulatory asset cap restrictions may be lifted, enabling further growth and profitability improvements.

4. HSBC Holdings PLC (Ticker: HSBC)

   • Upside Potential: 17.2%
   • HSBC’s significant exposure to the Asian markets offers a promising investment outlook as Asian economies continue to grow. Analysts anticipate steady revenue growth supported by improved asset management and fee income following strategic divestments.

5. Royal Bank of Canada (Ticker: RY)

   • Upside Potential: 26.1%
   • As Canada’s largest commercial bank, Royal Bank of Canada has historically demonstrated strong resilience during economic downturns. Analysts project merger-related synergies and improved performance from its U.S. subsidiary City National to boost overall returns.

6. Citigroup Inc. (Ticker: C)

   • Upside Potential: 25.9%
   • Citigroup is focusing on institutional banking with expectations for growth in its corporate treasury services. Analysts support Citi’s ongoing transformation efforts, including restructuring that aims to enhance profitability and operational efficiencies.

7. PNC Financial Services Group Inc. (Ticker: PNC)

   • Upside Potential: 52.4%
   • PNC is recognized for its asset management and corporate banking services, with expectations for significant improvements in net interest margins. The bank is set to surpass earnings expectations as it capitalizes on falling funding costs and escalating loan growth.

8. NatWest Group PLC (Ticker: NWG)

   • Upside Potential: 5.6%
   • This U.K. financial services provider has made strides in digital transformation and cost efficiency while aiming for profitability improvements in the coming years through disciplined growth strategies.

9. M&T Bank Corp. (Ticker: MTB)

   • Upside Potential: 46.8%
   • M&T Bank focuses on organic growth through various banking services and is expected to benefit from an expanding market as economic conditions stabilize, following recent strategic shifts.

10. Fifth Third Bancorp (Ticker: FITB)

    • Upside Potential: 49.5%
    • Fifth Third is rated positively for its resilient business model and strategic acquisitions, which are anticipated to generate sustainable growth rates in the competitive banking sector.

Conclusion

As market conditions evolve, the above bank stocks represent a strategic mix of growth potential and value investment opportunities for investors looking to enhance their portfolios in 2025. With careful selection and a focus on banks displaying robust fundamentals and strategic positioning, investors may find significant benefits in these recommended stocks. For those interested in receiving timely updates and further analysis, signing up for stock news through dedicated investment newsletters may prove beneficial.

Share this article: