2025 Which bank stocks to invest in for good profits? Analyzing 12 top contenders from around the world

In 2025, many investors are looking for opportunities to generate income from long-term, stable investments. Bank stocks are back in the spotlight as assets of interest again, thanks to their solid fundamentals and consistent dividend payout history. However, the market offers numerous options across Asia and the West, making the selection of suitable bank stocks crucial.

This article will help you explore 12 major banks, both from Thailand and globally, to give you a clearer picture of each one’s strengths and weaknesses.

Why Do Bank Stocks Remain Popular?

Before diving into the details of each bank, we should understand why bank stocks are preferred over other assets.

1. Interest income remains strong

Although the aggressive interest rate hike cycle from recent times may be stabilizing, the current levels are still significantly higher than pre-COVID-19 times. This means banks’ net interest margins continue to benefit.

2. Consistent and attractive dividends

Large, financially stable banks often pay dividends to shareholders regularly each year. Market analysis in 2025 indicates that the financial sector will continue to increase dividend payouts.

3. Economic activity recovery

Global GDP is projected to grow at 3.1% in 2025, with Thailand expected to grow at 2.7%. This scenario suggests increased business activity and a rising demand for loans.

4. Relatively reasonable stock valuations

Looking at P/E or P/BV ratios of many bank stocks, current prices are not excessively high compared to historical averages.

5. Transition to digital models

Modern banks do more than just accept deposits and provide loans. They are building platforms that integrate various services—from shopping, parcel delivery, insurance, to investment services—all through a single app.

Which 6 Thai Banks Are the Most Investment-Ready?

Thai Banks Comparison Table

( BBL: Leader in corporate banking

BBL is a leader in large corporate lending, with a widespread international branch network that surpasses competitors. This provides diversification in risk management and revenue streams from abroad.

Continuous dividend payments are another key advantage. Although growth may be slower compared to banks focusing on small customers or tech startups, BBL offers high confidence and security. Most analysts expect BBL to achieve the highest profit growth among Thai banks in 2025, with a target price of 178 Baht, though some have revised it down to 161 Baht.

) KBANK: Excellent in technology and retail banking

KBANK excels in serving small- and medium-sized enterprises and households. It is also a leader in mobile banking with the K PLUS app, which has a massive user base.

Risks include a large SME loan portfolio that could lead to problematic debt. Additionally, KBANK invests in various tech companies and startups, which could open new growth opportunities in the future. Analysts forecast that KBANK will trend upward throughout 2025.

( SCB: Moving towards digital and technological era

The restructuring into SCBX signals strong ambition—investing in technology, digital assets, and platform development. These initiatives could lead to significant growth but also carry risks and uncertainties.

Dividend returns may not be as high as in the past, as funds are being allocated to investments. Analysts expect SCB to offer dividend yields of 6-8%.

) KTB: Access to massive government projects

KTB’s status as a state-owned commercial bank grants it special privileges, including access to various government projects.

The “Pao Tang” app has a huge user base, but the challenge lies in converting this data and user base into real revenue. The risk of non-performing loans is relatively low due to the high proportion of government-backed loans. KTB is considered a good choice for dividend income of 4-5%.

( TTB: Benefiting from mergers

TMBThanachart Bank was formed from a major merger and is now seeking to leverage this integration to deliver value, focusing on providing services to wealthy individuals and groups.

Another key focus is improving operational efficiency, especially reducing expenses relative to income. Digital transformation via the ttb touch app is progressing rapidly. Analysts believe TTB still has strong support and offers dividend yields of 6-8%.

) BAY: Major shareholder from Japan

BAY is controlled by Mitsubishi UFJ Financial Group (MUFG), the largest financial group in Japan. This relationship provides strong support in funding, technology, and global networks.

BAY has a solid foundation in consumer loans, especially car leasing. Its expansion into Southeast Asia is also noteworthy.

6 Top Global Banks: Premium Leaders

( International Banks Comparison Table

JPM: Wall Street’s king

JPMorgan Chase & Co. is the largest financial institution in the US and globally, with diverse operations covering retail banking, investment banking, asset management, and wealth management.

Its reputation, stability, and ongoing investments in technology make JPM a core holding for many institutional and individual investors.

BAC: Leading retail banking

Bank of America ranks second in the US by market value, focusing on retail and small business services domestically. It benefits significantly from high interest rates, given its large deposit base.

Some analysts suggest BAC might face headwinds in 2025 if the economy slows, but legendary investors like Warren Buffett still hold substantial stakes.

HSBC: Bridge between East and West

HSBC Holdings plc has a major presence in the UK and Asia, especially in Hong Kong and Mainland China. This strategic position allows HSBC to serve as a bridge for trade and investment between the West and East.

Global political risks could impact performance, but its stable fundamentals and growth opportunities in Asia remain attractive.

DBS: Asia’s banking powerhouse

DBS Group Holdings Ltd is the largest bank in Southeast Asia, headquartered in Singapore, a key financial hub.

DBS leads in digital banking and financial innovation, growing alongside Asia’s expanding economy.

ICBC: The world’s largest asset bank

Industrial and Commercial Bank of China Limited has the highest total assets globally. As a Chinese government-owned commercial bank, its growth closely follows China’s economic expansion.

Risks include rapid regulatory changes, asset quality concerns, and low P/E ratios reflecting these risks.

( MUFG: Japan’s banking gem

Mitsubishi UFJ Financial Group is a leading financial institution in Japan with operations worldwide. It is also a major shareholder in Thai bank Krungsri )BAY###.

MUFG could benefit if the Bank of Japan raises interest rates from zero, marking a significant policy shift after years of stagnation. However, growth within Japan is limited due to demographic challenges.

Investment Channels: How to Build Your Portfolio Today

After studying these options, investors may wonder, “How can I buy and sell these stocks?”

( How to buy Thai bank stocks

For stocks listed on SET, the process is straightforward:

• Open a securities account: Contact a licensed broker
• Deposit funds: Transfer money into your account to fund purchases
• Place orders: Use trading apps or platforms like Settrade Streaming

) How to trade foreign bank stocks

For those wanting to diversify globally, several options exist:

Through Thai securities firms: Many Thai brokers offer direct foreign stock trading accounts, making management easier.

Via CFD (Contract for Difference): A derivative contract that allows trading on price differences. The advantage is lower capital requirements due to leverage, enabling profit from both rising and falling markets. It offers high flexibility, and many brokers provide this service.

Conclusion: Choose Wisely, Save for Long-Term Income

Bank stocks remain a valuable option in 2025, offering steady dividends, stability, and digital transformation. Both Thai and international banks are supported by factors like interest rate trends and economic recovery.

Selecting stocks aligned with your goals and risk appetite is essential. Thai investors can easily access Thai bank stocks through the stock exchange, while international investments offer multiple channels. Regardless of the method, thorough research and comprehensive planning are key to building lasting wealth.