Investing in bank stocks in 2025: Thai and foreign, which one should you choose?

Why Bank Stocks Still Are a Good Choice in the Economy of 2568?

Investing in bank stocks is attractive for several reasons. First, regarding interest income, although the interest rate cycle may be entering a stabilization phase, the current levels are still significantly higher than during the COVID-19 era, supporting the net interest margin (NIM) of financial institutions.

Second, consistent dividend payments. Large, stable banks often generate satisfactory cash flows for shareholders. According to analyst forecasts, in 2568, dividend payments and share buybacks may increase.

Third, economic recovery. Goldman Sachs expects global GDP to grow by 3.1%, and analysts forecast Thai GDP to grow by 2.7%. If true, this will boost business activities and credit demand.

Finally, regarding valuation (Valuation), some bank stocks are still trading at reasonable levels relative to earnings per share or P/BV ratio.

6 Thai Bank Stocks to Watch: Who Leads?

Thai Bank Stocks Comparison Table

BBL: Leader in Stability

Bangkok Bank stands out for its solid capital base and risk management. Its extensive global branch network is among the top in Thai financial institutions. LH Securities forecasts that BBL will have the highest profit growth rate among banks in 2568, with a target price of 178 Baht, while TISCO Securities advises caution regarding asset quality.

( KBANK: Leader in Retail Customer Service

Kasikornbank pioneered digital banking through the K PLUS app, which has a massive user base. Although its SME loan portfolio may carry risks, investing in startups and tech companies offers new growth opportunities. KGI Securities believes KBANK will continue to trend upward in 2568.

) SCB: Restructuring and Innovation

After major restructuring, SCBX is focusing on fintech. It emphasizes building platforms and investing in digital assets. The exciting growth prospects come with risks from new business ventures. Asia Plus Securities estimates SCB’s dividend yield potential at 6-8%.

KTB: State Bank with Diversification

Krungthai Bank benefits from its role as a primary channel for government projects. The “Pao Tang” app has a large user base. The key challenge is converting this database into sustainable revenue. Kasikorn Securities highlights KTB as a top pick supported by government loan policies and asset quality.

( TTB: Synergy from Merger

TMBThanachart Bank was formed through a merger and is now reaping the benefits of synergy. Kasikorn Securities maintains that TTB offers a dividend yield of 6-8% and has reduced risk during the transition period.

) BAY: Connector to the Japanese Group

Krungsri benefits from backing by MUFG, one of the largest Japanese financial groups. Besides strength in retail lending, expansion into ASEAN markets is a story investors follow.

6 Major Global Banks: International Leaders

Foreign Bank Stocks Comparison Table

JPM: U.S. Market Leader

JPMorgan Chase is not only the largest bank in the U.S. but also diversified across retail banking, corporate investment, and wealth management. It is considered a must-have in institutional investors’ portfolios. Analysts are optimistic about 2568, supported by easing monetary policy and AI investments.

BAC: U.S. Advisor

Bank of America, the second-largest bank in the U.S., mainly serves domestic clients. It benefits greatly from rising interest rates but must monitor NPL risks tied to economic conditions. Warren Buffett holds a significant stake. However, analysts’ price forecasts vary—some see a decline, others expect a recovery.

( HSBC: Bridge Between West and East

HSBC Holdings has key operations in the UK and Asia, especially Hong Kong and Mainland China. Growth opportunities may come from expanding in emerging Asian economies, but geopolitical risks are present. Recently, HSBC has been shifting focus toward Asia.

) DBS: ASEAN Banking Powerhouse

DBS Group Holdings, one of Southeast Asia’s largest banks, headquartered in Singapore, is a regional financial hub. It is globally recognized for digital services and innovation. Its strong growth is driven by ASEAN economic expansion.

ICBC: Global Powerhouse ###With Restrictions###

Industrial and Commercial Bank of China, the world’s largest asset bank, closely tied to China’s economy. Investing in Chinese stocks carries specific risks, including regulatory changes, transparency issues, and governance concerns. Its low P/E reflects these risks.

MUFG: Japanese Financial Group Leader

Mitsubishi UFJ Financial Group, Japan’s largest bank, could benefit if the Bank of Japan ###BoJ### begins raising interest rates, a rare shift in recent years. However, growth in Japan is limited by demographic challenges.

Investment Channels: Opening Doors to the Stock Market

Investing in Thai Bank Stocks: Through the Stock Exchange

For Thai investors wanting to invest in bank stocks listed on the Thailand Stock Exchange (SET), the main steps are:

• Open a securities trading account with a licensed securities company approved by the Securities and Exchange Commission ###SEC(.
• Deposit sufficient funds into the account as collateral for trading.
• Use the securities company’s application, such as Settrade Streaming or the broker’s app, to place buy/sell orders.

) Investing in Foreign Bank Stocks: Multiple Methods and Options

For investing in leading foreign banks, Thai investors have several options:

Invest through Thai securities firms: Many Thai securities companies offer direct accounts for trading foreign securities. The advantage is ease of account management and inquiries.

Invest via CFD (Contract for Difference): CFDs are derivative contracts that allow trading on price differences. Benefits include leverage, higher purchasing power, high liquidity, and dividend payments without traditional costs.

Summary: Bank Stocks for 2568

Bank stocks, both domestic and international, remain attractive in 2568. Consistent dividends, financial stability, and digital transformation are key drivers.

Once you set your investment goals, opening an account with a reputable securities firm is convenient and secure. Whether investing domestically or internationally, thorough research is essential to make bank stocks a valuable component of your long-term wealth-building portfolio.