The outlook for banks in 2025 is promising, with loan growth driven by a renewed entrepreneurial spirit, a rebound in capital markets, deregulation and higher interest rates.
With the turn of the year, many investors adjust their portfoliosand one of the sectors that generates the most attention is the financial sector. In this context, a recent report from a financial giant highlighted several investment opportunities in US banks.
According to the report of UBSthe outlook for banks in 2025 is promising, with a Loan growth fueled by renewed entrepreneurial spirit, a rally in capital markets, deregulation and higher interest rates.
UBS selected four US banks as its top recommendations for invest in stocks in 2025:
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Bank of America (BofA): UBS upgraded its rating to “Buy” with a price target of $53 (up from $46.08 at the close on January 7). The report notes that the sale of shares by a large shareholder created a valuation gap that they consider unjustified. It is expected a 10% growth in net interest income in 2025, which should drive a 20% increase in BofA earnings per share compared to 2024.
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Wells Fargo: Despite the doubts, UBS continues to favor Wells Fargo for its long-term transformation process. The bank is on track to achieve a return on common tangible equity of 15%, which is just an intermediate step. With higher interest rates and a strong boost in fees, UBS’s target price is US$85 (compared to US$71.59 at the close of January 7).
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PNC: UBS sees PNC as a strong performer this year, with net income before provisions expected to grow 14%. The entity has significant excess capital and is well positioned to take advantage of both organic and strategic opportunities. The target price is US$220 (compared to US$194.77 at the close of January 7).
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Huntington Bancshares (HBAN): UBS highlights that HBAN benefited from strong growth in loans and deposits after investing when others were more cautious. Although commercial and industrial loan growth is expected to be most notable in the second half of 2025, The bank is well positioned to continue delivering good results. UBS’s target price is US$19 (compared to US$16.55 at the close of January 7).
How much did US banks rise in a year?
- Bank of America (BofA): 34.89%
- Wells Fargo: 15.4%
- PNC: 23.65%
- Huntington Bancshares (HBAN): 26.4%
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
