U.S. Big Banks' Performance Review for 2025
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Bank Performance Overview: In 2025, the six largest U.S. banks saw an average increase of 42%, with an average return of 45.51%, significantly outperforming tech stocks at 22.74%, indicating strong performance driven by high interest rates and M&A activity, yet facing risks from tightening regulations and softening loan demand ahead.
- Declining Loan Demand: As demand for commercial real estate and small business loans weakens, banks' net interest margins are peaking, with analysts warning of potential rate cuts ahead, creating a mismatch between investor expectations and the reality for bank stocks.
- Sell Recommendations for Major Banks: Analysts suggest investors consider selling Bank of America (BAC), PNC Financial Services (PNC), and Wells Fargo (WFC) due to challenges such as slowing loan growth and rising compliance costs, which could negatively impact stock performance.
- Increased Regulatory Pressure: The Trump administration's scrutiny of bank stock buyback programs may lead to declining profits, particularly for WFC, which missed earnings expectations in its latest report, highlighting ongoing legal and market challenges that could further affect its stock price.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BAC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BAC is 61.17 USD with a low forecast of 55.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 53.080
Low
55.00
Averages
61.17
High
71.00
Current: 53.080
Low
55.00
Averages
61.17
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bank of America Funds FIND's Expansion and Resilience Programs
- Funding Support: Bank of America has awarded a $500,000 grant to FIND Regional Food Bank to complete its capital campaign for a new 40,000 square-foot warehouse, significantly enhancing its capacity to meet record-level demand.
- Facility Upgrade: The new warehouse will feature extensive cold storage and a sustainable rooftop solar array, serving as a key component of FIND's disaster response and resiliency plan, ensuring rapid access to fresh food during emergencies.
- Service Expansion: The new facility enables FIND to increase fresh produce distribution by 60%, not only meeting rising demand but also eliminating remote storage costs, thereby ensuring local emergency food supplies for quicker responses in future crises.
- Community Impact: FIND provides over 20 million pounds of food annually to major soup kitchens, food pantries, and nonprofits, serving 125,000 people each month, reinforcing its role as a community wellness hub and aiding economic mobility.
Continue Reading
Columbia Dividend Income Fund Shows Strong Performance
- Robust Investment Strategy: Michael Barclay, the lead portfolio manager of the Columbia Dividend Income Fund, emphasizes minimizing volatility to keep investors engaged during downturns, thereby helping clients build wealth consistently over time, showcasing a solid investment approach.
- Fund Rating Improvement: Morningstar has recognized the fund as one of the best dividend funds for 2026, awarding it a four-star rating, with analysts describing its investment strategy as 'savvy and sound,' highlighting its competitive edge among peers.
- Focus on Investment Opportunities: Barclay identifies large-cap pharmaceutical stocks as the biggest investment opportunity currently, particularly as concerns over drug pricing and tariffs have eased, leading to improved fundamentals in the healthcare sector and prompting increased investment in this area.
- Key Holdings Analysis: The fund's major holdings include strong performers like Johnson & Johnson, which makes up 3.54% of the portfolio, and AbbVie at 1.69%, both of which demonstrate solid cash flow and robust financial health, supporting their long-term growth potential.
Continue Reading