7 Best-Performing Bank Stocks: April 2024 - NerdWallet (2024)

MORE LIKE THISInvestingStocks

Bank stocks have their pros and cons, and with both high interest rates and the stock market in a strong position, 2024 could be an interesting year for bank equities.

Best bank stocks by one-year performance

Below is a list of the seven best-performing bank stocks in the S&P 500 index, ordered by one-year performance.

Ticker

Company

Performance (1 Year)

JPM

JPMorgan Chase & Co.

54.05%

WFC

Wells Fargo & Co.

51.73%

C

Citigroup Inc

38.11%

FITB

Fifth Third Bancorp

35.78%

BAC

Bank Of America Corp.

30.87%

PNC

PNC Financial Services Group Inc

24.06%

KEY

Keycorp

22.26%

Source: Finviz. Stock data is current as of April 1, 2024, and intended for informational purposes only.

What are bank stocks?

Bank stocks are stocks that represent shares in banks, such as JPMorgan Chase, Wells Fargo and Bank of America. There are a few different ways to categorize bank stocks, such as the size of the bank or its core business.

» Want more detail? Check out our primers on banks and stocks

National, regional and community banks

  • National banks manage more than $100 billion in assets and typically have operations throughout the United States.

  • Community banks manage less than $10 billion in assets, and they may have operations in only one specific metro area or part of a state.

Advertisem*nt

Charles Schwab
Interactive Brokers IBKR Lite
J.P. Morgan Self-Directed Investing

NerdWallet rating

4.9/5

NerdWallet rating

5.0/5

NerdWallet rating

4.1/5

Fees

$0

per online equity trade

Fees

$0

per trade

Fees

$0

per trade

Account minimum

$0

Account minimum

$0

Account minimum

$0

Promotion

None

no promotion available at this time

Promotion

None

no promotion available at this time

Promotion

Get up to $700

when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.

Learn More
Learn More
Learn More

Investment, commercial and retail banks

  • Investment banks cater to publicly traded companies, governments and other large institutions. Their services include wealth management and help with mergers and initial public offerings, or IPOs. Their performance is often tied to the stock market.

  • Commercial banks cater to smaller companies. Their services include business accounts and loans. Their performance tends to be related to interest rates (higher rates can mean higher profit margins on loans), and to the overall strength of the economy.

  • Retail banks cater to individuals, providing services such as checking and savings accounts, credit cards and sometimes personal financial advice. Like commercial banks, their performance largely depends on interest rates and economic conditions.

The lines between these categories are sometimes blurred. Many big national banks — like JPMorgan Chase, Bank of America and Citigroup, the three largest in the U.S. — have investment banking, commercial banking and retail divisions.

Pros and cons of investing in bank stocks

Bank stocks, like the ones shown above, might look particularly appealing when interest rates are high, but it’s important to understand that they have unique downsides as well as unique upsides.

Pros of bank stocks

  • Commercial and retail banks like higher interest rates: Noninvestment banks make most of their money by lending. Higher interest rates mean more lending income.

  • Most banks pay dividends: Dividends are seen as an important signal of financial health for banks, and so the vast majority of bank stocks do pay dividends consistently.

Cons of bank stocks

  • Values: For those looking to invest in companies that align with their values, some might have trouble with bank stocks. Many banks, especially big ones, count fossil fuel companies and gun companies among their clients. Some have even been implicated in money laundering and sanctions evasion on an international scale.

  • Investment banks don’t like bear markets: Big investment banks largely serve publicly traded companies. That means they do well when the market is doing well. But when times are tough, as they are now, companies tend to tighten their purse strings. That means less revenue for investment banks.

  • Regulatory risks: In the aftermath of the 2008 financial crisis, Congress passed the Dodd–Frank Wall Street Reform and Consumer Protection Act, which gives the Federal Reserve the ability to restrict bank stock dividend increases and share buybacks during times of financial stress. The Fed imposed these restrictions during the 2020 recession.

Track your finances all in one place

Find ways to invest more by tracking your income and net worth on NerdWallet.

Sign Up

7 Best-Performing Bank Stocks: April 2024 - NerdWallet (4)

How to buy bank stocks

If you’re totally new to investing and you’re interested in buying bank stocks, the first step is to open a brokerage account.A brokerage account is an investment account, or where you can purchase investments from. It's not an investment itself.

Once you’ve done that, you’ll need to decide whether to buy individual bank stocks or bank exchange-traded funds, or ETFs.ETFs are baskets of stocks held together in one investment. Bank ETFs will focus on holding banks and other financial institutions.

Individual bank stocks

Shares of specific banks can be powerful moneymakers, but investing in individual stocks can be risky. If you pour a significant portion of your portfolio into an individual bank stock, you could end up with a substantial loss as a result of a few bad decisions by management, or a regional economic downturn in the case of a regional bank.That's why many advisors urge investors to diversify with broad-market investments such as .

Buying individual stocks can also have a large upfront cost if you’re adding several to your portfolio.

Experts say that you can mitigate these risks somewhat by limiting individual stocks to about 10% of your overall portfolio, and by carefully researching stocks before buying them.

» Learn more about how to research stocks

Bank ETFs

Another approach is to buy dozens of bank stocks at once through a bank ETF. These provide a degree of diversification, and they're often much cheaper than buying individual shares of the banks within them.

Different kinds of bank ETFs are available for different segments of the banking industry.

If you’re looking for exposure to national banks with investment banking operations, consider financial sector ETFs, which largely consist of big Wall Street firms. If you’re looking for exposure to regional commercial and retail banks, check out regional bank ETFs.

Neither the author nor editor held positions in the aforementioned investments at the time of publication.

7 Best-Performing Bank Stocks: April 2024 - NerdWallet (2024)

FAQs

What are the best performing bank stocks? ›

Best bank stocks by one-year performance
TickerCompanyPerformance (1 Year)
FITBFifth Third Bancorp39.16%
JPMJPMorgan Chase & Co.38.70%
CCitigroup Inc30.30%
KEYKeycorp28.69%
3 more rows
May 1, 2024

What are the best stocks to invest in in 2024? ›

2024's 10 Best-Performing Stocks
Stock2024 Return Through April 30
Trump Media & Technology Group Corp. (DJT)185.3%
Canopy Growth Corp. (CGC)191.2%
Super Micro Computer Inc. (SMCI)202.1%
Alpine Immune Sciences Inc. (ALPN)238.9%
6 more rows
May 3, 2024

Which bank is performing the best these days? ›

HDFC Bank has consistently delivered robust financial performance, with strong growth in net profit and healthy asset quality. Investors consider HDFC Bank as the best banking share to buy due to its consistent dividend payouts and strong fundamentals.

What is the best bank to invest your money in? ›

  • JPMorgan Chase & Co. (JPM) ...
  • HSBC Holdings PLC (HSBC) HSBC is one of the world's largest banking and financial services providers and has more than 39 million customers. ...
  • Citigroup Inc. (C) ...
  • Bank of Montreal (BMO) ...
  • PNC Financial Services Group Inc. ...
  • Fifth Third Bancorp (FITB) ...
  • M&T Bank Corp. ...
  • Regions Financial Corp.

Which bank stock is Undervalued? ›

Those trying to find undervalued banks should have a look at Bandhan Bank (NS: BANH ) Limited. It is a private-sector lender with a market capitalization of INR 31,420 crore.

What is the number 1 investment banking company? ›

Goldman Sachs is widely known as the most prestigious investment bank on Wall Street. The bank's interns receive phenomenal training, hands-on experience, and the opportunity to rotate across many groups and desks.

What stocks will skyrocket in 2024? ›

The Best Growth Stocks of May 2024
Company (ticker)5-Year Avg. Yearly EPS Forecast
The Vita Coco Company, Inc (COCO)104.1%
Live Nation Entertainment, Inc. (LYV)80.3%
Full Truck Alliance Co. Ltd (YMM)35.9%
Nvidia Corporation (NVDA)35.0%
6 more rows

Which stocks are expected to grow in 2024? ›

Trending Growth Stocks List in 2024
Stock NameSub-SectorMarket Cap (in Cr)
JK Paper LtdIT Services & Consulting402,578.62
Allcargo Logistics LtdMetals - Diversified140,068.27
Oil India LtdHome Electronics & Appliances46,461.34
Caplin Point Laboratories LtdSoftware Services46,054.67
6 more rows
Apr 25, 2024

What are the top 10 stocks to buy right now? ›

Sign up for Kiplinger's Free E-Newsletters
Company (ticker)Analysts' consensus recommendation scoreAnalysts' consensus recommendation
Amazon.com (AMZN)1.29Strong Buy
Nvidia (NVDA)1.33Strong Buy
Microsoft (MSFT)1.33Strong Buy
Bio-Techne (TECH)1.39Strong Buy
21 more rows

Which bank stock gives the highest dividend? ›

Indian (NIFTY) Banks Dividend Stocks
CompanyLast Price1Y Return
MAHABANK Bank of Maharashtra₹63.90111.9%
CANBK Canara Bank₹548.1584.6%
BANKBARODA Bank of Baroda₹254.8542.6%
TMB Tamilnad Mercantile Bank₹468.7011.3%
20 more rows

How to pick bank stocks? ›

Analyze the financial performance of the bank, including key metrics such as net interest margin (NIM), return on assets (ROA), return on equity (ROE), and efficiency ratio. Look for consistent earnings growth, strong asset quality, and stable liquidity.

Which bank is the most financially stable? ›

JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.

Where can I get 7% interest on my money? ›

7% Interest Savings Accounts: What You Need To Know
  • As of May 2024, no banks are offering 7% interest rates on savings accounts.
  • Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

What is the safest bank in the United States? ›

Safest Banks in the U.S.
  • CITIBANK. ...
  • WELLS FARGO. ...
  • CAPITAL ONE. ...
  • M&T BANK CORPORATION. ...
  • AGRIBANK. ...
  • COBANK. ...
  • AGFIRST. ...
  • FARM CREDIT BANK OF TEXAS. Farm Credit Bank of Texas is the fourth member of the U.S. Farm Credit System, providing wholesale lending and business services in states like Texas, Alabama, and New Mexico.
Feb 13, 2024

Where can I get 12% interest on my money? ›

Where can I find a 12% interest savings account?
Bank nameAccount nameAPY
Khan Bank365-day, 18-month and 24-month Ordinary Term Savings Account12.3% to 12.8%
Khan Bank12-month, 18-month and 24-month Online Term Deposit Account12.4% to 12.9%
YieldN/AUp to 12%
Crypto.comCrypto.com EarnUp to 14.5%
6 more rows
Jun 1, 2023

Which bank stock is highest valued? ›

Comprehensively, the top 10 Global banks companies in the world had a total market cap of $1,879,696 million (as of Mar 31, 2023), with JPMorgan Chase & Co having the highest ($383,549 million), followed by Industrial and Commercial Bank of China Ltd ($235,043 million), and Bank of America Corp ($228,780 million), ...

Is investing in bank stocks good? ›

Investing in bank stocks can provide attractive returns for investors, especially during periods of economic growth and rising interest rates. Banks are a fundamental part of the economy, facilitating economic transactions and lending capital to businesses and consumers.

Are bank stocks a good buy during inflation? ›

Bank stocks in inflationary environments

On the positive side, high inflation means that goods and services will cost more, so average loan amounts tend to increase. In other words, with all other things being equal, if vehicle prices rise by 10%, a bank's auto loan volume should do the same.

When should you buy bank stocks? ›

However, typically the best time to buy and own banks is during the reserve building phase while valuations are depressed. Once you come through the recession and the banks start to release reserves back into earnings, the strong earnings growth combined with attractive valuations drives strong stock performance.

Top Articles
Latest Posts
Article information

Author: Twana Towne Ret

Last Updated:

Views: 5513

Rating: 4.3 / 5 (64 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Twana Towne Ret

Birthday: 1994-03-19

Address: Apt. 990 97439 Corwin Motorway, Port Eliseoburgh, NM 99144-2618

Phone: +5958753152963

Job: National Specialist

Hobby: Kayaking, Photography, Skydiving, Embroidery, Leather crafting, Orienteering, Cooking

Introduction: My name is Twana Towne Ret, I am a famous, talented, joyous, perfect, powerful, inquisitive, lovely person who loves writing and wants to share my knowledge and understanding with you.