10 Best Bank Stocks to Buy in 2025

3. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 88

Citigroup Inc. (NYSE:C) is an American multinational investment banking and financial services company, headquartered in New York City. It is the third-largest banking institution in the United States by assets and enjoys a vast global footprint with an on-the-ground presence in over 90 countries.

Over the past three years, the bank has seen its revenue record double-digit growth in the Middle East and Africa region, which was also the fastest growing cluster for Citigroup Inc. (NYSE:C) globally during this period. Despite economic and geopolitical headwinds, the company is seeing immense growth in the region on the back of strong FDI inflows.

In late November, the bank received approval from Saudi Arabia to establish its regional headquarters in the bustling capital city of Riyadh. This marks a significant step for the company in its bid to further solidify its position in the region. Citigroup Inc. (NYSE:C)’s share price has grown by 5% since the announcement.

The bank has also been undergoing strategic repositioning. As part of these efforts, in December, it successfully separated its institutional banking business from its consumer, small, and middle market entities in Mexico. The separation is an important milestone in Citigroup Inc. (NYSE:C)’s quest to simplify the firm and have a bank that is more focused on its core offerings.

Citigroup’s financial position remains robust. During the third quarter of 2024, the company experienced revenue growth and positive operating leverage across all its businesses. Revenue grew 3% during the quarter, ex-divestitures. Net income was reported at $3.2 billion, down from $3.5 billion during the same period last year, due to higher cost of credit. Despite that, the bank beat earnings estimates by 20 cents.

Citigroup Inc. (NYSE:C) is one of the best bank stocks to buy in 2025, based on hedge fund sentiment. According to Insider Monkey’s database for Q3 2024, 88 hedge funds had investments in the company, up from 85 at the end of Q2. Wall Street analysts are also bullish on the stock, with a consensus Buy rating and an average share price upside potential of 9%.