Which bank stocks to choose in 2025? Study the 12 top global contenders that offer worthwhile dividends.

Many investors are looking for large-cap stocks with strong fundamentals and attractive dividends. Bank stocks often top the list of preferred choices. But the real question is “Which one to choose?” This article presents an analysis of 12 leading bank stocks, both in the Thai market and globally, comparing their strengths and areas to watch.

6 Thai Banks: Who Are the True Leaders?

Comparative analysis table of Thai banks

BBL: The Leading Stable Thai Bank

BBL stands out for its strong cash and large corporate loan portfolios. Its extensive international branch network helps diversify risk and generate new income streams outside Thailand. Its balanced dividend payout is well-supported by investors, even though growth rates may be modest due to its large base. BBL is known as a safe choice with predictable returns.

Equity research firm LH Securities expects BBL to have the fastest profit growth in 2025, with a target price of 178 Baht, while Tisco Securities has revised the target down to 161 Baht. Many investors are cautious about loan portfolio quality.

( KBANK: Expert in Modern Banking Services

KBANK excels in serving SMEs and the general public. It is also a leader in the K PLUS app used by millions. Concerns include potential increases in NPLs from its SME loan portfolio. KGI Securities and Asia Plus Securities believe KBANK has upside potential in 2025 due to investments in technology and startups.

) SCB: Moving into Fintech Era

SCB has undergone a major restructuring into SCBX, focusing on the fintech ecosystem, platform development, innovation, and digital assets. This transition has created excitement but also uncertainty as it expands into new business areas. Dividends may be lower during this adjustment phase. Asia Plus Securities notes that SCB offers dividend yields of 6-8%, which is attractive.

KTB: State Bank with Digital Tools

KTB benefits from its role as a government-linked bank. Its “Pao Tang” app has millions of users nationwide. The challenge is converting its user base and data into sustainable business opportunities and revenue. Its asset quality may be stronger than private banks due to a high proportion of government loans. KBank is highlighted by Kasikorn Securities as a top pick, expecting government credit expansion, while Asia Plus Securities offers a 4-5% dividend yield.

( TTB: Post-Merger Integration

TTB was formed from the merger of TMB and Thanachart Bank. It is now creating synergy by focusing on retail and high-net-worth clients, reducing its Cost-to-Income ratio, and digitalizing via TTB Touch. Kasikorn Securities favors TTB as a top pick; despite a slight profit dip in 2025, its capital management plans, including buybacks and dividend increases, will help mitigate issues. Daio Securities also selects TTB as a top pick, citing light interest rate impact and tax shields, with dividends of 6-8%.

) BAY: Japanese-Backed Leader

BAY’s strength lies in its well-known brand, with major shareholder MUFG (Mitsubishi UFJ Financial Group of Japan). This provides access to capital, technology, and global networks. BAY is strong in consumer loans, especially auto leasing, and expanding branches across ASEAN. InnoveX Securities sets a target of 25 Baht, while Tisco Securities adjusts it to 25.50 Baht.

6 International Banks: Global Giants

Comparative table of foreign banks

JPM: The Godfather of Wall Street

JPMorgan Chase is a global banking giant with a market cap of over $18.5 trillion. Its vast business includes retail banking, investment banking, wealth management, and asset management. Its trusted brand and strong cash position make it a core holding for institutions and individual investors. J.P. Morgan Private Bank is optimistic about 2025 under the theme “Building on Strength,” citing easing monetary policies worldwide and additional AI investments.

BAC: The Second Largest, Still Strong

Bank of America ranks second after JPM in size, focusing on retail and corporate banking in the US. It benefits from rising interest rates, with deposits earning more, but faces risks of rising NPLs if the economy weakens. Warren Buffett holds a significant stake in Berkshire Hathaway. Litefinance projects BAC may decline in 2025, breaking below support levels of $25.50–$27.50 by year-end, while Coin Price Forecast expects an increase to $47.65 in December 2025. StockScan’s average target is $40.88.

( HSBC: The Bridge Between East and West

HSBC has a large presence in the UK and Asia, especially Hong Kong and China. It benefits from being a gateway for trade and investment between East and West. As Asian economies expand, geopolitical risks, especially related to China-West relations, pose challenges. HSBC is restructuring to focus more on Asia.

) DBS: The ASEAN Digital Banking Leader

DBS Group is the largest bank in ASEAN, headquartered in Singapore. It is recognized as a leader in digital banking and innovation, with strong performance and benefits from ASEAN economic growth.

( ICBC: The World’s Largest Asset Bank, but with Contractual Risks

ICBC is the largest bank in the world by assets, a Chinese commercial bank. Its growth is tied to China’s economy. However, investing in Chinese banks involves specific risks: rapid regulatory changes, asset quality concerns, and transparency issues. Despite a low P/E ratio, these risks are reflected in its valuation.

) MUFG: The Japanese Financial Powerhouse

MUFG is Japan’s largest financial group with a global network, including a major stake in BAY. It may benefit if the Bank of Japan (BoJ) raises interest rates from zero. The BoJ’s policy shift is significant after years of ultra-loose monetary policy, but domestic economic growth remains slow due to demographic challenges.

Why Are Bank Stocks Priced for Investment?

After identifying attractive stocks, the next question is “Why do bank stocks overall remain attractive for 2025?” What flows are driving investor interest?

1. Steady Dividends

Even if the rising interest rate cycle ends, current levels are higher than pre-COVID-19, positively impacting most banks’ NIMs.

2. Dividend Incentives

Large, stable banks tend to pay consistent dividends. Analysts expect global banks to increase dividends and buybacks in 2025, appealing to long-term investors seeking steady cash flow.

3. Economic Recovery ###with Projections###

If the Thai and global economies recover steadily, Goldman Sachs forecasts global GDP of 3.1% in 2025, and InnovestX projects Thai GDP at 2.7%. Economic growth will boost credit demand across sectors and households.

4. Valuations Are Not Overpriced

Compared to historical averages of P/E and P/BV ratios, some banks remain undervalued or fairly valued.

5. The Changing Nature of Banking

Banks are evolving from deposit and loan institutions to platforms integrating diverse services: online shopping, delivery, insurance, investments via apps like K PLUS, SCB EASY, and Pao Tang. The goal is seamless customer experiences within a single platform.

How to Buy Bank Stocks?

Once you’ve selected stocks, the next step is “How to buy?” especially for beginners or those investing in foreign stocks for the first time.

( Thai Bank Stocks: Just a Finger Tap

Investing in Thai bank stocks listed on SET is simple and convenient:

• Open a securities account with a licensed broker
• Deposit funds into the trading account
• Place buy/sell orders via apps or trading platforms like )Settrade Streaming, broker apps###

Foreign Bank Stocks: Gateway to Global Markets

Thai investors seeking international bank stocks have options:

• Thai securities firms offering direct trading of foreign securities, with easy account management and inquiries
• CFD ###Contract for Difference### trading contracts that mirror the price movements of underlying assets. Advantages include lower capital requirements, leverage, ability to profit from both rising and falling markets, and no traditional fees.

Final Outlook

Investing in bank stocks in 2025 remains an attractive option due to steady dividends, stability, and digital transformation. Both Thai and foreign banks have growth opportunities from interest income and economic recovery.

Thai bank stocks are easily accessible through local brokers, while international options are available via multiple channels. Conducting thorough research ensures that investing in bank stocks can be an effective long-term wealth-building strategy.