Which bank stocks are good in 2025? Selected from 12 top global securities

Why Do Bank Stocks Pay High Dividends?

Before looking at the interesting list, let’s understand what attracts investors to the financial business. These 5 reasons explain why they continue to keep an eye on:

1. Power from High Interest Rates When the central bank maintains borrowing rates at a reasonable level, the net interest margin of banks widens, significantly boosting profits.

2. Annual Dividend Policy Leading bank stocks often aim to pay high dividends, complemented by share buybacks. Stock issues provide shareholders with continuous benefits.

3. Economic Growth Expansion When the global economy moves and credit demand increases, banks benefit from issuing more loans.

4. Stable Cost Structure Banks can manage operating costs efficiently, especially by reducing expense-to-income ratios through digital technology.

5. High Confidence Banking is a heavily regulated industry, making it safer and more trustworthy than other sectors.

6 Thai Bank Stocks - Who Are the Star Stocks?

Comparison table of Thai bank stocks

BBL - Krungthai Bank

A stock worth noting for its strong financial position, leading in large corporate loans, and having the widest global branch network, which helps diversify risk.

Analysts expect BBL to have higher profit growth than other banks in 2025, with a target price of 178 Baht, despite some downward adjustments to 161 Baht. Monitoring asset quality remains crucial.

KBANK - Kasikornbank

Highlights include services for SMEs and ordinary people, along with digital banking via the K PLUS app, which has a large user base.

The challenge lies in the large SME loan portfolio, which may involve non-performing loans that require close monitoring.

KGI Securities has selected KBANK as a standout stock, expecting continuous growth in 2025.

SCB - SCBX

Underwent a major restructuring to become a fintech group, focusing on building platform systems and investing in digital assets.

This creates excitement and growth opportunities but also involves risks from investing in new businesses.

SCBX confirms its goal to maintain financial strength and increase shareholder value. Asia Plus Securities recommends SCB as a high-dividend option, offering around 6-8%.

KTB - Krungthai Bank

A state bank benefiting from being a primary channel for government projects. Its key strength is the “Pao Tang” app, which has a massive user base.

The challenge is to leverage this database and user base to generate sustainable income.

KASIKORNBANK has chosen KTB as a standout stock due to expected growth in government loans, strong asset quality, and low SME loan exposure.

TTB - TMBThanachart Bank

Formed from the merger of two banks, currently creating synergies through the integration, focusing on serving wealthy and well-behaved customers with operational efficiency.

Reducing expense-to-income ratios and developing digital services via the ttb touch app are key points to watch.

KASIKORNBANK has selected TTB as a standout stock, with limited downside due to proactive capital management plans.

BAY - Bank of Ayudhya

A major advantage is having MUFG as the major shareholder, the largest financial group in Japan, providing funding, technology, and business networks.

BAY is strong in the retail loan market, especially auto leasing, and expanding into ASEAN countries, which is an attractive growth area.

6 Foreign Bank Stocks - Global Leaders

Comparison table of foreign bank stocks

JPM - JPMorgan Chase & Co.

The largest bank in the US by market value, serving individual clients, investment banking, wealth management, and asset management.

Strong brand, high credibility, and a leader in technology investments. Its balance sheet is very strong.

JPM is often considered a core holding for many investors.

BAC - Bank of America Corporation

The second-largest US bank, mainly serving retail and business clients domestically. Benefits from rising interest rates due to high demand for checking and savings accounts.

Risks include bad debts if the economy slows. Warren Buffett holds a significant stake.

Analysts have mixed views: some expect the stock price to decline, others see it rising to $40-47.

HSBC - HSBC Holdings plc

A global bank with key operations in the UK and Asia, especially Hong Kong and Mainland China.

Opportunities come from being a gateway for trade and investment between the West and East. However, geopolitical risks are a concern.

DBS - DBS Group Holdings Ltd

The largest bank in Southeast Asia, headquartered in Singapore, the region’s financial hub.

Recognized as a leader in digital banking and financial innovation, with strong and continuous growth.

ICBC - Industrial and Commercial Bank of China Limited

The largest bank in the world by assets, a state-owned Chinese commercial bank. Its growth closely follows China’s economy.

Risks include rapid policy changes, asset quality concerns, non-performing loans, and governance issues.

Despite low P/E, these risks are reflected in the valuation.

MUFG - Mitsubishi UFJ Financial Group, Inc.

The largest financial institution in Japan, with a global network, including a major stake in Krungsri Bank in Thailand.

Potential benefits if the Bank of Japan raises interest rates from zero, marking a significant policy shift in years.

However, growth in Japan is limited by demographic and economic slowdown issues.

How to Trade Bank Stocks for Thais

Buying Thai Bank Stocks - Good News for Beginners

Investing in SET-listed bank stocks is straightforward. Main steps:

1. Open an account with a licensed securities company.
2. Deposit funds into the account as collateral.
3. Place orders via apps or trading platforms like Settrade Streaming.

Buying Foreign Bank Stocks - Multiple Channels

Thai investors have options to invest in leading foreign banks:

Through Thai brokers Many brokers in Thailand offer direct foreign securities accounts, making account management and inquiries convenient.

Via CFD (Contract for Difference) A contract to trade price differences. The advantage is lower initial investment due to leverage, allowing profit in both rising and falling markets, with high flexibility.

Different companies may have varying conditions and fees, so comparison is recommended before choosing.

Summary

Bank stocks remain an attractive option in 2025, with advantages such as steady dividends, financial stability, and adaptation to digital business models.

Both Thai and foreign banks have growth opportunities driven by interest rates and economic recovery.

Investing in Thai bank stocks is easy through brokers, while foreign investments offer multiple channels.

The key is to study comprehensive information to make long-term, sustainable wealth-building investments.