Which bank stocks are good? An in-depth analysis of 12 top contenders in the global market for 2025-2026

Many investors often look for stocks with strong fundamentals, stable income, and consistent dividend payments. In this category, bank stocks frequently top the list. But the key question is: Which bank stocks are the best for your portfolio? This article will analyze 12 leading banks worldwide, examining their strengths, risks, and investment opportunities in detail.

Which Thai banks are worth considering? Comparing 6 major players

Overview of Thai bank stocks

In the Thai stock market, bank stocks are highly valued by investors. Below is a comparison table of 6 major banks listed on the Stock Exchange of Thailand (SET):

BBL – Leader in large corporate finance

Bangkok Bank stands out as a leader in large corporate lending and has the widest international branch network, reducing risk from market concentration. Its stable dividend income is another attractive feature. Although its growth rate may not be as rapid as digital or retail-focused banks, BBL is ideal for those seeking maximum stability.

LH Securities forecasts BBL to show the highest profit growth among these banks, with a target price of 178 Baht, while Tisco Securities has revised it down to 161 Baht. Some analysts advise caution regarding asset quality.

KBANK – Leader in digital banking

Kasikornbank excels in serving SMEs and the general public, emphasizing digital banking through the K PLUS app, which has many users and comprehensive features. However, its large SME loan portfolio requires close monitoring of NPLs (Non-Performing Loans).

KBANK’s investments in startups and tech companies open new growth opportunities. KGI Securities highlights KBANK as a top pick, with Asia Plus Securities expecting continued upward momentum and a dividend yield of 4-5% in the coming years.

SCB / SCBX – Transition into fintech

Siam Commercial Bank has undergone a major restructuring into SCBX to enter the fintech universe, focusing on platform creation, innovation investment, and digital assets. This transformation offers significant growth potential but also involves uncertainties and investments in new businesses.

Asia Plus Securities projects SCB to deliver a dividend yield of 6-8%, and Bualuang Securities continues to recommend holding due to attractive dividend payments.

KTB – Gateway to large projects

As a state commercial bank, Krungthai Bank benefits from loans to government projects. Its key strength is the “Pao Tang” app, which has a vast user base nationwide. The challenge is converting these users into sustainable revenue streams.

KBank is highlighted by Kasikorn Securities as a top stock, expecting government loan growth, strong asset quality, and low SME loan ratio. Asia Plus Securities assigns a dividend yield of 4-5% to KTB.

TTB – Benefits from merger synergy

TMBThanachart Bank was formed from the merger of TMB and Thanachart Bank. Currently, it is in the phase of realizing synergies, focusing on retail and affluent clients. Improving cost-to-income ratio is a key factor to watch.

Kasikorn Securities considers TTB a top stock, despite potential slight profit declines in 2025, due to limited downside risk from proactive capital management. DAE Securities also picks TTB as a top choice, expecting less impact from rate cuts compared to larger banks, with a dividend yield of 6-8%.

BAY – Backed by MUFG

Bank of Ayudhya benefits from being part of Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group, which provides support in funding, technology, and business networks. BAY is strong in retail lending, especially auto loans.

InnoVestX maintains a target price of 25 Baht, while Tisco Securities slightly lowers it to 25.50 Baht.

Top global banks: 6 stocks to watch across regions

Comparison table of international bank stocks

JPM – Market leader in action

JPMorgan Chase is the largest U.S. bank by market value, offering a wide range of services from retail banking, corporate finance, wealth management, to asset management. Its strong brand and AI investments make JPM a core holding for many investors.

J.P. Morgan Private Bank’s outlook for 2025-2026, under the theme “Building on Strength,” is positive, citing easing global monetary policies and increased tech investments.

BAC – Warren Buffett’s favorite

Bank of America ranks second in the U.S., mainly serving retail and corporate clients domestically. It benefits from high interest rates and substantial deposit base.

BofA is a major holding of Warren Buffett’s Berkshire Hathaway. Analysts have mixed views: some see downside risks, others expect revenue growth.

HSBC – Bridge between West and East

HSBC is a global bank with core operations in the UK and Asia, especially Hong Kong and Mainland China. It is well-positioned to benefit from Asian market expansion and cross-border investments.

However, geopolitical risks and political uncertainties are concerns. HSBC is restructuring to focus more on Asia.

DBS – Leading in Southeast Asia

DBS Group is the largest bank in Southeast Asia, headquartered in Singapore, a regional financial hub. It is recognized as a leader in digital banking and financial innovation.

Its excellent management, adaptability, and regional growth prospects make DBS a popular choice.

ICBC – China’s giant

ICBC is the world’s largest bank by assets, a state-owned commercial bank of China. Its growth closely ties to China’s economic expansion.

Investing in Chinese banks involves risks such as regulatory changes, opaque NPLs, and governance issues. Its low P/E reflects these risks.

MUFG – Japan’s financial giant

Mitsubishi UFJ Financial Group is Japan’s largest financial institution, with a global network and major shareholder of BAY in Thailand.

MUFG may benefit from potential rate hikes by the Bank of Japan, but domestic growth is limited by demographic challenges and economic stagnation.

Why are bank stocks compelling? 5 reasons for 2026

1. Net interest margin remains attractive

While the cycle of aggressive rate hikes may slow, current high rates compared to pre-COVID levels continue to support bank NIMs.

2. Steady dividend payments

Large, financially stable banks often have a history of consistent dividends and attractive yields. Analysts expect global banks to increase dividends and buybacks, making them suitable for long-term income-focused investors.

3. Economic recovery prospects

Continued global and local economic growth would boost activity and credit demand.

4. Attractive valuation levels

Compared to historical averages or market averages, many bank stocks still trade at reasonable valuations based on P/E and P/B ratios.

5. Digital banking ecosystem evolution

Modern banks are transforming from simple deposit and loan providers into platforms offering diverse services—trading, payments, insurance, investments, and more—via mobile apps (K PLUS, SCB EASY, Pao Tang, etc.), aiming to deliver seamless, comprehensive experiences within a single platform.

How can Thais trade bank stocks?

Investing in Thai bank stocks: straightforward

Investing in stocks listed on SET is convenient. The steps are:

Step 1 – Open a securities account
First, open an account with a licensed securities company (broker).

Step 2 – Deposit funds
Deposit money into the account to fund your trades.

Step 3 – Place buy/sell orders
Use trading apps or platforms like Settrade Streaming or your broker’s platform.

Investing in foreign bank stocks: access to global markets

For Thai investors seeking international diversification, several options exist:

Option 1: Through Thai brokers
Many Thai brokers offer direct accounts for foreign securities trading, with local support.

Option 2: Via CFDs (Contracts for Difference)
CFDs are derivative contracts that track the price difference of underlying assets. Advantages include:

• Lower initial capital due to leverage
• Ability to profit from both rising and falling markets
• High flexibility in trading
• No traditional commissions

Many CFD brokers, such as Mitrade, offer:

💸 Generous bonus for new clients: $100! 🎁
🤑 Zero commission - lowest spreads!
💰 Minimum investment just $50
📊 Practice trading for free with a virtual account of $50,000
ลงทุนเลย

Note: Investing involves risks and may not be suitable for everyone.

Summary outlook: bank stocks in 2026

Bank stocks continue to present attractive investment opportunities in 2025-2026, supported by steady dividends, strong financial health, and digital transformation. Both Thai and international banks benefit from favorable interest rate environments and economic growth prospects.

Investing in Thai bank stocks is straightforward via local brokers, while international options are diverse—ranging from local brokers to CFDs for more flexibility.

The key is thorough research: compare current valuations with long-term potential, and align investments with your goals. Once you do, the question Which bank stocks are best becomes much easier to answer. Go ahead and implement your investment plan!