Coming into 2025, many analysts said solid economic growth and a friendly regulatory environment could help banks generate impressive loan growth. Investors were hoping a potential rebound in mergers and acquisitions could help investment banks boost their fee revenue.
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Unfortunately, uncertainty surrounding President Donald Trump’s tariff policies, coupled with aggressive federal layoffs, have rattled the markets, and some bank stocks could face credit risks if the U.S. tips into a recession. Bank stock selection is critical in 2025, so here are 10 of the best bank stocks to buy today, according to CFRA:
| Stock | Upside Potential* |
| JPMorgan Chase & Co. (ticker: JPM) | 29.6% |
| Bank of America Corp. (BAC) | 25.5% |
| Wells Fargo & Co. (WFC) | 29.1% |
| HSBC Holdings PLC (HSBC) | 17.2% |
| Royal Bank of Canada (RY) | 26.1% |
| Citigroup Inc. (C) | 25.9% |
| PNC Financial Services Group Inc. (PNC) | 52.4% |
| NatWest Group PLC (NWG) | 5.6% |
| M&T Bank Corp. (MTB) | 46.8% |
| Fifth Third Bancorp (FITB) | 49.5% |
*As of March 19 close.
JPMorgan Chase & Co. (JPM)
JPMorgan Chase is is one of the largest global financial services companies, with nearly $4 trillion in assets under management. Analyst Kenneth Leon says JPMorgan’s 2025 performance will likely be tied closely to the strength of the U.S. economy given 75% to 80% of the company’s total revenue is generated domestically. Nevertheless, Leon says JPMorgan is gaining market share in several different banking businesses, and the company should benefit from a growing number of midsize companies opting to shift their loans and other services to larger banks. CFRA has a “buy” rating and $310 price target for JPM stock, which closed at $239.11 on March 19.
Bank of America Corp. (BAC)
Bank of America is one of the largest U.S. commercial and investment banks and wealth management services providers. Leon says the Trump administration’s pro-business policies will fuel a recovery in investment banking activity in 2025, and Bank of America generates the third-highest global investment banking fee revenue among all banks. He anticipates Bank of America will exceed consensus analyst estimates for net interest income (NII) and noninterest investment banking income this year. Leon says NII is a particularly important contributor to Bank of America’s organic revenue growth. CFRA has a “buy” rating and $53 price target for BAC stock, which closed at $42.21 on March 19.
Wells Fargo & Co. (WFC)
Wells Fargo is one of the largest U.S. banks, lending mostly within the U.S. market. Analyst Alexander Yokum says Wells Fargo should improve on the 13.4% return on tangible common equity the bank reported in 2024. Yokum is confident in CEO Charles Scharf’s vision and ability to continue navigating Wells Fargo’s restructuring initiatives. The company’s investments in its credit card business have resulted in impressive growth in recent quarters. Finally, Yokum says Wells Fargo’s punitive asset cap restriction could finally get lifted in 2025. CFRA has a “buy” rating and $94 price target for WFC stock, which closed at $72.76 on March 19.
HSBC Holdings PLC (HSBC)
HSBC is one of the world’s largest banking and financial services providers and has more than 40 million customers. Analyst Firdaus Ibrahim says HSBC’s high exposure to Asia makes the company an attractive investment given his bullish outlook for Asia’s long-term banking growth. As interest rates decline, Ibrahim says HSBC’s asset management and private banking fee income growth will help support the company’s overall revenue growth. In addition, he says divestment of the bank’s underperforming businesses has freed up capital and set HSBC up to improve profitability. CFRA has a “buy” rating and $69 price target for HSBC stock, which closed at $58.85 on March 19.
Royal Bank of Canada (RY)
Royal Bank Of Canada is the largest commercial bank in Canada and also owns City National in the U.S. Yokum says Royal Bank of Canada has a long history of industry-leading return on equity, and the bank has held up well during previous economic downturns. He says merger-related synergies and a strong performance from City National will support improving return on equity in the next couple of years. Yokum anticipates fewer deposit pricing pressures in 2025 and says City National’s cost-cutting program will help earnings rebound. CFRA has a “buy” rating and $144 price target for RY stock, which closed at $114.22 on March 19.
[Read: 2025’s 10 Best-Performing Stocks]
Citigroup Inc. (C)
Citigroup is a diversified global bank and financial services company. Leon says Citi is well positioned for institutional banking growth and has executed its turnaround strategy well. He says the bank is a market leader in technology platforms and corporate treasury services, and the planned 2025 exit of consumer banking in Mexico will further streamline business and reduce payroll costs. Leon says Citi’s focus on consistency and transparency should create value for investors in the long term, and he projects modest 4.1% revenue growth in 2025. CFRA has a “buy” rating and $90 price target for C stock, which closed at $71.44 on March 19.
PNC Financial Services Group Inc. (PNC)
PNC Financial Services is one of the largest U.S. banks, offering asset management and traditional, corporate and institutional banking services. Yokum says PNC is positioned to improve net interest margin from 2.75% at the end of 2024 to near 3% by the end of 2025. He says consensus net interest income expectations are too low, setting PNC up to beat earnings expectations in coming quarters. Yokum says falling funding costs, asset repricing and accelerating loan growth will be tailwinds for PNC in 2025. CFRA has a “strong buy” rating and $265 price target for PNC stock, which closed at $173.83 on March 19.
NatWest Group PLC (NWG)
NatWest is a leading U.K. corporate and retail bank and financial services provider. Ibrahim says digital transformation, disciplined growth and active balance sheet management will help NatWest boost profitability in the coming years. He says the bank has already significantly improved its operational efficiencies via cost-cutting measures. In fact, NatWest’s cost-to-income ratio dropped from 74% in 2020 to just 53.4% in 2024. Ibrahim says NatWest has a low loan impairment rate, a conservative balance sheet, impressive capital generation potential and a responsible 50% dividend payout ratio. CFRA has a “buy” rating and $13 price target for NWG stock, which closed at $12.31 on March 19.
M&T Bank Corp. (MTB)
M&T Bank is a U.S. regional, commercial-focused bank, offering banking, trust and investment services primarily in the Northeast and Mid-Atlantic regions. Yokum says M&T offers investors strong balance sheet growth coupled with the potential for double-digit annual earnings growth. He says M&T is improving its loan book and reducing its exposure to commercial real estate, which should allow the bank to reduce its stress capital buffer and prioritize loan growth. Yokum also projects M&T’s net interest margin will expand in 2025. CFRA has a “strong buy” rating and $260 price target for MTB stock, which closed at $177.06 on March 19.
Fifth Third Bancorp (FITB)
Fifth Third Bancorp is a U.S. regional bank that offers retail and commercial banking, consumer lending and asset management services in the Midwest and Southeast regions. Yokum says Fifth Third is firing on all cylinders, taking advantage of a near record deposit base and outmaneuvering many of its peers. He says Fifth Third’s healthy 70% loan-to-deposit ratio will allow the bank to focus on loan growth in 2025. Yokum anticipates Fifth Third’s return on equity will improve this year and the bank will prioritize share buybacks. CFRA has a “strong buy” rating and $59 price target for FITB stock, which closed at $39.46 on March 19.
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10 of the Best Bank Stocks to Buy for 2025 originally appeared on usnews.com
Update 03/20/25: This story was previously published at an earlier date and has been updated with new information.
