Which bank stocks should you choose in 2025? An in-depth look at 12 top contenders in Asia and globally

Investing in bank stocks is a strategy that attracts significant attention in the investment community, especially for those seeking steady income through dividends and long-term capital appreciation. But the lingering question is which bank stocks are truly the best in terms of returns and stability? This article will analyze 12 bank stocks that present promising investment trends in 2025, covering both the Thai market and global markets.

Thai Banking Sector: Who Are the Market Leaders?

The Thai financial market has six leading banks with strong capital bases, closely followed by analysts and institutional investors. The comparative structure is as follows:

BBL - Solid Financial Foundation

Bangkok Bank maintains a robust financial position, leading in large corporate lending and owning the most extensive foreign branch network. This diversification helps reduce risk and creates income streams outside Thailand.

LH Securities projects that BBL will have the highest profit growth among the leading banks throughout 2025, with a target price of 178 Baht. Its consistent dividend history makes it attractive to conservative investors. TISCO Securities has revised its target price down to 161 Baht and warns to monitor asset quality closely.

( KBANK - Digital Banking Leader

Kasikornbank excels in serving retail and SME customers, especially through the K PLUS app, which boasts a large user base and diverse features. However, its large SME loan portfolio carries risks related to NPLs that need close monitoring.

KGI Securities considers KBANK a standout stock in the sector. Asia Plus Securities sees a dividend yield of 4-5% and expects upward momentum in 2025, mainly driven by continued investments in tech companies and startups that could generate new growth factors.

) SCB - Transition to FinTech

SCBX is undergoing a major restructuring to embrace FinTech, focusing on platform development, investing in modern technology, and digital assets. There are real opportunities for explosive growth, but also risks associated with investing in new businesses during this transitional phase.

Asia Plus Securities notes that SCBX offers a high dividend yield of 6-8%. Bualuang Securities recommends holding for dividend income, suitable for investors seeking stable cash flow.

KTB - Government Banking Channel

KTB, as a state-owned commercial bank, remains a key channel for government projects. Its “Pao Tang” app, with widespread usage, is a highlight. The challenge is converting this user base into sustainable revenue.

KBank Securities names KTB as a top pick, considering its expected growth in government loans, strong asset quality, and lower NPLs compared to private banks. Asia Plus Securities places it in the 4-5% dividend yield group.

( TTB - Benefits from Merger

TMBThanachart Bank was formed from the merger of two institutions. It is currently building synergies, focusing on retail and wealth management services. Cost-to-income ratio is a key performance indicator.

KTB Securities favors TTB as a top stock. Despite a slight profit decline in 2025, downside risk is limited due to proactive capital management. DAE Securities also picks TTB as a top choice, citing less impact from interest rate changes and beneficial tax shields. Dividend yield could reach 6-8%.

) BAY - Signals from Japan

Bank of Ayudhya is majority-owned by Mitsubishi UFJ Financial Group, a leading Japanese financial group, supporting it with capital, technology, and global networks. BAY is strong in retail lending, especially auto and personal loans.

InnoVESTX maintains a target price of 25 Baht, while TISCO Securities slightly lowers its target to 25.50 Baht.

Global Bank Stocks: International Opportunities

Beyond Thailand, there are six global bank stocks offering interesting investment opportunities:

( JPM - The U.S. Banking King

JPMorgan Chase is the largest bank in the U.S. by market value, with operations spanning Retail Banking, Investment Banking, Wealth Management, and Asset Management. Its strong brand makes it a core holding for global institutional investors.

J.P. Morgan Private Bank is optimistic about 2025 under the theme “Building on Strength,” citing easing monetary policy and increased AI investments as growth drivers.

) BAC - Another U.S. Contender

Bank of America ranks second in the U.S., primarily serving retail clients with high deposit and savings account proportions, benefiting from rising interest rates. However, it faces risks related to NPLs if the economy slows.

Warren Buffett holds a significant stake in Berkshire Hathaway, indicating confidence in the stock. Analysts’ opinions vary: Litefinance predicts a downward trend in 2025, while Coin Price Forecast expects a price of $47.65 by December.

( HSBC - Gateway Between East and West

HSBC Holdings plc has a diversified presence across the UK and Asia, especially Hong Kong and China. Its growth opportunities lie in bridging Western and Eastern markets, but geopolitical risks are present.

) DBS - ASEAN Leader

DBS Group Holdings is the largest bank in Southeast Asia, headquartered in Singapore. Recognized for digital banking and innovation, its performance is expected to grow steadily and continuously.

( ICBC - Chinese Giant

ICBC is the world’s largest bank by assets, owned by the Chinese government. Its growth is closely tied to China’s economy.

However, investing in Chinese banks carries specific risks, including rapid regulatory changes, asset quality issues, potentially opaque NPLs, and governance concerns. Despite low P/E ratios, these risks are reflected in valuation.

) MUFG - Japanese Giant

Mitsubishi UFJ Financial Group is Japan’s largest financial group, with a global network and major ownership in BAY of Thailand.

MUFG could benefit if the Bank of Japan raises interest rates significantly from negative levels, marking a major policy shift in years. However, Japan’s growth may be limited by demographic and economic challenges.

Why Do Bank Stocks Still Attract Attention in 2025?

After analyzing these 12 leading stocks, the question remains: what still makes them appealing to investors?

Factors supporting bank stocks:

1. Interest rates still favor banks – Although the strong upward cycle may have peaked, current rates higher than during COVID-19 remain positive for net interest margins (NIM).

2. Attractive dividends – Large, stable banks have a history of consistent dividend payments, expected to continue in 2025.

3. Economic recovery – Goldman Sachs forecasts global GDP growth of 3.1% in 2025; InnovestX expects Thai GDP to grow 2.7%, which will boost loan demand.

4. Reasonable valuations – Many stocks trade at P/E and P/BV ratios that remain within reasonable levels.

5. Digital business models – Banks are evolving beyond traditional roles into platforms connecting various services via apps like K PLUS, SCB EASY, and Pao Tang.

How to Invest in Bank Stocks

Thai Bank Stocks

1. Open a securities trading account with a licensed brokerage.
2. Deposit funds to create trading capital.
3. Place buy/sell orders via apps or trading platforms like Settrade Streaming.

International Bank Stocks

1. Through Thai securities firms – Many brokers offer international stock trading accounts, making it convenient to manage and contact.

2. CFD ###Contract for Difference### – An option for increased leverage, allowing for larger positions with less capital. Benefits include:

   • Lower initial capital
   • Profit from both rising and falling markets
   • High flexibility
   • Low fees

Interested traders can explore CFD offerings from various regulated brokers, choosing platforms with strong oversight and credibility.

Summary: Investing in Bank Stocks in 2025

Bank stocks remain an attractive investment option within a diversified portfolio, thanks to consistent dividends, financial stability, and digital transformation.

Both Thai banks with stability and international banks with growth potential from different economies have valid reasons to be included.

Investing in Thai bank stocks can be conveniently done through local broker accounts, while access to international markets can be achieved via direct investments or CFDs for more flexibility.

The key is to conduct thorough research, paying attention to key indicators such as P/E ratio, dividend yield, NPLs, and cost-to-income ratio, to turn bank stocks into effective tools for wealth building over the long term.