A fresh analysis by market strategists finds that as many as eight banking stocks currently offer potential upside of more than 22% over the next 12 months.
The case for these banks isn’t speculative: many have strengthened their balance sheets over recent years, with improvements in loan-book quality and return on equity (RoE). With competitive valuations post-correction and expectations of easing interest rates, analysts believe these banks are positioned to benefit once sentiment turns positive.
At the same time, caution remains. Lower interest rates — which the market anticipates as monetary policy loosens — tend to compress banks’ lending margins. As a result, margin pressure could mute upside, making sector-wide performance heavily dependent on rate cycles and credit growth.
For investors, this makes selective buying critical: the recommended banking names may offer meaningful gains — but only if macro conditions (rate cuts, credit growth) and bank-level execution (asset quality, cost control) align.
