In 2025, which 12 bank stocks are suitable for your portfolio? Explore growth opportunities and investment options.

Why Are Bank Stocks Always Among the Top Choices for Investors?

For investors seeking “strong stocks with solid fundamentals and easy to verify,” bank stocks are often the first answer that comes to mind. However, the challenge lies in selecting the right ones—those that align with your investment goals.

This article will explore the allure and provide a clear overview, including a review of 12 leading bank stocks both domestically and internationally to watch in 2025. From each company’s investment strategy to simple trading steps, you’ll find useful insights.

This Time, We Will Deep Dive into 6 Leading Thai Bank Stocks

Signs of Growth and Differentiation for Each Bank

BBL: Gateway to International Markets

Bangkok Bank is a leader in international expansion, with a widespread foreign branch network and expertise in large corporate lending. Consistent dividends also signal the bank’s stability.

LH Securities ((LH Securities)) sees BBL as having the highest profit growth potential among peers in 2025, with a target price of 178 Baht. However, TISCO Securities (###TISCO Securities() warns to monitor asset quality, lowering the target to 161 Baht. Cautious analysts highlight risks from changing lending environments.

) KBANK: Digital Leader and SME Market

Kasikornbank offers a different growth perspective. The K PLUS app is highly popular and a key tool for customer engagement. Its ability to serve SMEs and individuals broadens its customer base.

However, the large SME loan portfolio may be sensitive to economic slowdown. KGI Securities ((KGI Securities)) and Asia Plus Securities see high potential for KBANK to adapt, with attractive dividend yields of 4-5%.

SCB/SCBX: Major Bet on Structural Transformation

The restructuring of Siam Bank ((SCB)) into SCBX reflects ambitions to shift from a traditional bank to a fintech financial institution. Heavy investments in digital platforms, other assets, and new businesses generate hope but also entail high risks.

Asia Plus Securities recommends watching the 6-8% dividend yield, which may fluctuate during this transition. Long-term growth seekers willing to accept short-term uncertainty might see this as a worthwhile gamble.

KTB: State as a Foundation

Krungthai Bank, as a state-owned commercial bank, benefits from ongoing access to government projects. The “Pao Tang” app has a broad user base, but the main challenge is creating real business value from this data.

KTB is favored by Kasikorn Securities due to expected growth in government loans and stronger asset quality among peers, with a reasonable dividend yield of 4-5%.

TTB: The Result of Mergers

TMBThanachart Bank ((TTB)) resulted from a past merger. Currently, it is building synergy from this integration, aiming to improve cost-to-income ratios (###Cost to Income Ratio() and make aggressive capital management decisions.

Daiwa Securities ()Daiwa Securities###) considers TTB a Top Pick, believing that despite potential profit declines, positive factors like capital management and share buybacks should support the stock, with a possible dividend yield of 6-8%.

( BAY: Out-of-This-World Support from Japan

Bank of Ayudhya ()BAY() differentiates itself through its affiliation with Mitsubishi UFJ Financial Group ()MUFG(), Japan’s largest financial group. This support grants access to technology, capital, and international networks.

BAY’s strength lies in retail lending, especially auto leasing. Expansion into ASEAN markets is another promising story, with both InnoveX ()InnoveX() and Tisco Securities ()Tisco Securities() maintaining positive outlooks on this stock.

Then: 6 Foreign Bank Stocks

) Comparative Table of Financial Strength and Profitability

( JPM: The American Financial Empire

JPMorgan Chase & Co. stands at the top of the US financial hierarchy. Known as a leader in wealth management, asset management, and investment banking, its brand is globally recognized. It is also at the forefront of AI and innovation investments.

J.P. Morgan Private Bank remains optimistic about this core asset under the theme “Building on Strength” for 2025, citing easing monetary policies and ongoing AI investments as positive factors.

) BAC: The US Challenger

Bank of America is a major US bank, primarily serving retail and domestic corporate clients. It benefits from rising interest rates, with high proportions of current and savings accounts.

Market rumors suggest differing analyst views: Litefinance’s technical analysis predicts a downtrend in 2025, while Coin Price Forecast indicates potential upside to $47.65.

HSBC: The Bridge Between West and East

HSBC Holdings plc sits at the crossroads of the West and East, with its UK-based headquarters and operations centered in Asia. It is viewed as a key facilitator of trade and investment between the two regions.

Its strategic shift toward investment and expansion in Asia presents growth opportunities, though geopolitical risks and China-West relations remain concerns.

( DBS: Southeast Asia’s Leading Bank

DBS Group Holdings Ltd is a regional leader in Southeast Asian finance, headquartered in Singapore, regarded as a financial hub. It is widely recognized for digital banking leadership and financial innovation.

Steady growth in earnings and efficient management allow DBS to benefit from ASEAN economic expansion.

) ICBC: The Tower of the East

Industrial and Commercial Bank of China Limited is the world’s largest bank by assets. Its growth is directly tied to China’s economic trajectory.

Investment considerations must include deeper risks, such as rapidly changing regulatory uncertainties and asset quality transparency issues. While low P/E ratios may seem attractive, they reflect these risks.

MUFG: Japan’s Financial Powerhouse

Mitsubishi UFJ Financial Group, Inc. is Japan’s leading financial institution, with a global network. Its growth outlook depends on Japan’s central bank policies ((BoJ)) and interest rate hikes.

If the Bank of Japan shifts away from negative or zero interest rate policies, it would signify a major change, potentially benefiting MUFG directly. However, Japan’s economic growth faces challenges from demographic shifts and a sluggish economy.

Why the Banking Sector Remains an Attractive Investment Choice

After analyzing these stocks, the question remains: why are bank stocks still considered outside the main interest in 2025?

1. As long as interest rates stay high

Although the strong upward interest rate cycle may have ended, current rates remain significantly above pre-COVID levels. Most banks still benefit from net interest margin ($100 NIM$50 ).

2. Stable dividends

Large banks with solid economics have a history of consistent and attractive dividend payments. Analysts expect global banks to increase dividends and buybacks in 2025.

3. Promising economic recovery

Goldman Sachs forecasts global GDP growth of 3.1% in 2025, while InnovestX projects Thai GDP growth of 2.7% during this recovery, with business and household loans expanding.

4. Attractive valuation relative to assets

Many bank stocks’ P/E and P/BV ratios, compared to historical averages or the overall market, suggest some are reasonably priced.

5. Evolving banking ecosystem

Modern banks are no longer just accepting deposits and issuing loans. They are building platforms to connect various services—from online shopping, delivery, insurance, investments—within mobile apps like K PLUS, SCB EASY, and Pao Tang. The goal is to create seamless, comprehensive customer experiences within a single platform.

How Thai Investors Can Buy Bank Stocks

Accessing Thai Securities Accounts—Your Gateway to Thai Bank Stocks

Investing in stocks listed on SET is straightforward. Simply:

Getting Started:

• Open a securities trading account with a licensed broker
• Deposit funds to build purchasing power (Line Available)
• Use trading apps like Settrade Streaming or your broker’s app

Foreign Bank Stocks—Opening the Door to Global Markets

For investors interested in foreign banks, several options exist:

Through Thai Brokers: Many Thai brokers offer direct foreign securities accounts, often via their platforms, making account management and inquiries convenient.

Via CFD (Contract for Difference): CFD is a contract predicting price differences. Benefits include:

• Lower initial investment due to leverage
• Profitability in both rising and falling markets
• High sensitivity and quick trading
• No traditional fees

Mitrade, for example, offers CFD services with bonuses for new clients, low spreads, minimum deposits (), and demo accounts with $50,000 virtual funds.

Summary: Investing in Bank Stocks for 2025

Bank stocks remain an attractive investment theme in 2025, with stable dividends, financial stability, and a shift toward digital models. From strong domestic banks to international giants with robust economies, all see growth opportunities driven by factors like high interest rates and economic recovery.

Investing in Thai bank stocks is easy through opening a securities account. Foreign bank investments can be made via multiple routes, including Thai brokers or CFD trading for those interested in short-term speculation and higher risk tolerance.

The key is to conduct thorough research, enabling bank stock investments not only to generate direct dividend income but also to build wealth and manage portfolios effectively over the long term.