2025 Bank Stock Investment Guide: In-Depth Analysis of 12 Global Bank Stocks

In today’s investment environment, seeking stable and reliable investment targets often points to bank stocks. These large publicly listed banks have strong financial foundations, a consistent dividend record, and robust performance in digital transformation. But the core question remains: which bank stocks are worth choosing? This article provides a comprehensive analysis of 12 bank stocks in the global and Thai markets to help investors make more informed decisions.

Thailand Domestic Bank Stock Camp: Six Major Players Comparison

Overview of core data for Thailand’s six major bank stocks

BBL - Bangkok Bank Public Company Limited: Steady Growth Leader

As one of Thailand’s largest asset banks, BBL is known for its strong financial strength and extensive international business network. The bank holds a significant position in the large corporate loan market and has the most extensive overseas branch network among Thai banks, helping to diversify business risks and generate international income opportunities.

BBL’s main appeal lies in its consistent dividend policy. Although its growth rate may not be as rapid as banks focused on retail and technology, this stability makes it the top choice for investors seeking certainty of returns.

According to LH Securities’ forecast, BBL will achieve the strongest profit growth among Thai banks by 2025, with a target price set at 178 THB. However, Tisco Securities has slightly lowered the target price to 161 THB, and some analysts suggest monitoring its asset quality trends.

KBANK - Kasikornbank Public Company Limited: Digital Innovation Driver

KBANK has established a clear competitive advantage in the SME and retail customer segments, building a large active user base through its flagship app K PLUS. The app offers rich features and has become an important entry point for retail customers.

However, due to the large scale of its SME loan portfolio, the risk of non-performing loans needs close monitoring. Additionally, KBANK’s strategic investments in many tech companies and startups have opened new growth engines.

KGI Securities lists KBANK as a key recommended stock, while Asia Wealth Securities expects the stock to rise by 2025 and believes its dividend yield will remain in the 4-5% range.

SCB - The Mid-sized Bank Company Limited: Tech Dreamer in Transformation

SCB has completed its restructuring into SCBX, with the strategic goal of building a financial technology group. The bank focuses on constructing digital platforms, investing in cutting-edge technology, and expanding digital asset businesses. This transformation releases significant growth potential but also involves risks and uncertainties associated with new business lines.

During the transition, high dividend levels in previous years may be adjusted. However, SCBX is committed to maintaining financial stability and enhancing shareholder value. Asia Wealth Securities points out SCB as a high-dividend yield option, with expected yields in the 6-8% range.

KTB - Krung Thai Bank Public Company Limited: State-backed Advantage

As a state-owned commercial bank, KTB benefits from its core role in government project financing. Its “ตัง” app has a large user base nationwide, laying a foundation for digital ecosystem development and revenue innovation.

The challenge lies in effectively converting the massive user base into sustainable business opportunities. Due to its high proportion of government loans, KTB’s non-performing loan ratio is usually lower than some private competitors.

Phatra Securities recommends KTB as a key stock due to its strong government loan prospects, stable asset quality, and low SME loan ratio. Asia Wealth Securities also includes it in the bank group with a dividend yield of 4-5%.

TTB - TMBThanachart Bank Public Company Limited: Synergy Creator in Fusion

TTB was formed from the merger of TMB Bank and Thanachart Bank and is currently in a critical phase of realizing merger synergies. The bank focuses on retail customers and high-net-worth individuals, while also improving operational efficiency, especially by lowering cost-to-income ratio.

Digital transformation is a priority, and progress in the ttb touch app is worth watching. Phatra Securities recommends TTB for its resilience during rate-cut cycles, tax shield benefits, and proactive capital management strategies (including share buybacks and increased dividends).

DAO Securities also lists TTB as a top choice, expecting its impact from rate cuts to be less than larger banks, with high dividend yields (6-8%).

BAY - Bank of Ayudhya Public Company Limited: Opportunities from International Heritage

BAY’s most prominent competitive advantage is having Mitsubishi UFJ Financial Group (Japan’s largest financial group) as its major shareholder, providing strong support in capital, technology, and business networks.

The bank leads in retail loans, especially auto and personal loans. Its expansion prospects into other ASEAN countries are also noteworthy. InnovestX Securities maintains a target price of 25 THB for BAY, while Tisco Securities slightly lowers it to 25.50 THB.

Selected International Bank Stocks: Six Global Giants

Key indicators of six international bank stocks

JPM - JPMorgan Chase & Co.: The Crown of the US Financial System

JPMorgan Chase, measured by market value, is the largest bank in the US, with operations spanning retail banking, investment banking, commercial banking, wealth management, and asset management. It boasts a strong brand influence, high market credibility, and leadership in fintech investments. Its balance sheet is exceptionally robust.

JPM is typically regarded by institutional and individual investors as a core holding and a cornerstone of global portfolios. The private banking division remains optimistic about the outlook through 2025, believing that easing global monetary policies and accelerated investments in key technologies like AI will drive performance growth.

BAC - Bank of America Corporation: New Opportunities in Retail Banking

As the second-largest US bank, BAC mainly serves domestic retail and commercial clients, benefiting most during rising interest rate cycles (due to large amounts of demand deposits and savings accounts, expanding net interest margin). However, risks of bad loans during economic slowdown should not be overlooked.

Berkshire Hathaway, Warren Buffett’s company, holds a significant position in BAC within its investment portfolio, reflecting its long-term investment value. Technical analysis indicates BAC may face downward pressure by 2025, but forecasts vary among analysts.

HSBC - HSBC Holdings plc: The Financial Bridge Connecting East and West

HSBC is a globally influential financial group with significant operations in the UK and Asia (especially Hong Kong and mainland China). As a key link in facilitating Western and Eastern trade and investment, it benefits from Asian economic development.

However, geopolitical risks (especially US-China relations) should not be underestimated. HSBC is undergoing organizational restructuring, increasing investments and expansion in Asian markets.

DBS - DBS Group Holdings Ltd.: Digital Banking Leader in ASEAN

DBS, the largest bank in Southeast Asia (ASEAN) by assets, is headquartered in Singapore—the region’s financial hub. The bank is renowned worldwide for its digital banking innovation and fintech leadership, with sustained strong performance and excellent management efficiency.

DBS benefits from ASEAN’s economic expansion, laying a solid foundation for medium-term steady growth.

ICBC - Industrial and Commercial Bank of China: The World’s Largest Asset Bank

Measured by assets, ICBC is the world’s largest bank, serving as a policy tool for the Chinese government. Its growth is closely tied to China’s economy. However, investing in Chinese bank stocks involves unique risks that require careful assessment:

• Rapid regulatory policy changes
• Transparency concerns over asset quality and non-performing loans
• Corporate governance issues

While its low P/E ratio appears cheap, it often reflects market pricing of these risks.

MUFG - Mitsubishi UFJ Financial Group: Japan’s Largest with Global Reach

MUFG is Japan’s largest financial group, with a global business network, and is a major shareholder of Siam Commercial Bank (BAY). The group could benefit from a potential policy shift if the Bank of Japan (BoJ) indeed raises policy interest rates.

However, domestic growth in Japan is constrained by demographic issues and slowing economic growth, limiting domestic expansion potential.

Why Bank Stocks Still Worth Attention? Five Investment Reasons for 2025

1. Favorable Interest Rate Environment

Although the rapid rate hike cycle is nearing its peak, current interest rates remain significantly higher than the ultra-low levels during the COVID-19 pandemic. This relatively high rate environment continues to support most banks’ net interest margins (NIM).

2. Attractive Dividends Persist

Large, financially sound banks have historically maintained consistent dividend policies, with attractive dividend yields. Analysts expect global banks to increase dividend payments and share buybacks by 2025, making these securities ideal for long-term investors seeking stable cash flows.

3. Economic Recovery Outlook Supports

If the global and Thai economies can achieve steady recovery (Goldman Sachs forecasts 3.1% global GDP growth in 2025, InnovestX predicts 2.7% Thai GDP growth), economic activity expansion will boost loan demand from both commercial and household sectors.

4. Valuations Still Attractive

Comparing P/E or P/BV ratios of multiple banks against historical averages or overall market averages reveals that some bank stocks are still trading at reasonable prices.

5. New Trends in Digital Ecosystem Construction

Modern banks have gone beyond traditional deposit and loan services. They are building interconnected ecosystems, integrating e-commerce, logistics, insurance, investment, and other services on a single mobile platform.

This holistic approach aims to create seamless customer experiences and meet comprehensive needs through a single interface. Such an ecosystem model could unlock significant revenue and value creation opportunities.

How Can Thai Investors Trade Bank Stocks?

Buying Thai Bank Stocks: Simple Process

Investing in bank stocks listed on the Stock Exchange of Thailand (SET) is straightforward:

Step 1: Open a Securities Trading Account
Open a stock trading account with an authorized securities company (broker).

Step 2: Deposit Trading Funds
Deposit funds into the trading account as collateral (available trading limit or Line Available).

Step 3: Place Trading Orders
Place buy or sell orders via the trading app or software platform provided by the securities company. Many brokers offer localized mobile apps for trading.

Investing in International Bank Stocks: Access Global Markets

For Thai investors wishing to diversify into top global banks, several channels are available:

Option 1: Through Thai Securities Firms for International Trading
Many Thai securities firms offer direct trading services for overseas stock markets. Investors can trade conveniently via local broker platforms while maintaining account management and advisory services.

Option 2: Using CFD (Contract for Difference) Tools
CFDs allow investors to trade price movements of assets without owning the actual assets. Advantages include:

• Smaller initial investment compared to traditional stocks
• Leverage to amplify purchasing power
• Profit from both rising and falling markets
• Fast, convenient trading with no traditional transaction fees
• Many brokers provide CFD trading services

Get Started

Multiple securities companies and investment platforms offer easy-to-use account opening and trading tools. The key is to choose trusted, regulated providers.

Conclusion: Bank Stocks Investment Outlook and Implementation Path

Entering 2025, bank stocks remain a core component of stable portfolios, highly regarded for their dividend stability, financial strength, and digital adaptation.

Both domestic Thai banks and international bank stocks offer growth opportunities—domestic ones benefit from the local interest rate environment and economic recovery, while international ones benefit from global financial cycle shifts.

Investing in Thai-listed bank stocks is extremely convenient through local securities accounts; investing in international bank stocks also has multiple feasible channels. Regardless of the chosen approach, thorough research is essential to ensure your bank stock investments become powerful tools for long-term wealth accumulation.