In this article, we discuss 15 Best Bank Stocks to Buy According to Billionaires.
As 2025 kicks off, bank executives are facing a mix of optimism and uncertainty. Inflation is easing, and interest rates are coming down, but challenges like slow economic growth, geopolitical instability, and shifting regulations are keeping industry leaders on edge. According to Deloitte, while the US economy outperformed expectations in 2024 with a 2.7% GDP growth rate, things are expected to slow in 2025, with projections around 1.5%. Rising unemployment, weaker business investment, and high consumer debt, which now stands at a record $17.7 trillion, could put additional pressure on the financial system.
For banks, a big challenge will be maintaining growth despite these economic headwinds. With interest rates dropping, net interest income is expected to decline, and deposit costs may stay high as banks compete to retain customers. Mortgage loan demand is likely to pick up, but credit card and auto loans could see slower growth as consumers tighten their wallets. Meanwhile, corporate borrowing should remain steady, with potential growth in debt issuance and M&A if economic and political uncertainty settles down.
According to Morningstar DBRS, the US banking sector is expected to remain stable in 2025, with banks benefiting from a better operating environment, an improved yield curve, and steady economic growth. Loan demand should pick up, and banks have managed to maintain strong liquidity, capital levels, and profitability, putting them in a good position for the year ahead. While credit ratings for banks are not expected to change significantly, some could see positive adjustments if current trends continue. However, if interest rates stay high for longer than expected, it could put pressure on consumers and businesses. Trade conflicts or geopolitical tensions could also slow down economic growth. On the bright side, higher loan demand and a steeper yield curve could boost banks’ earnings, with many predicting record net interest income (NII) in 2025.
Billionaires Backing the Banking Sector
As the banking industry braces for these shifts, billionaires are paying close attention. Over the past ten years, billionaires have gotten much richer, growing their wealth faster than the stock market. From 2015 to 2024, their total fortune more than doubled, going from $6.3 trillion to $14 trillion. In comparison, the MSCI World Index only grew by 73%. The number of billionaires also increased, from 1,757 in 2015 to 2,682 in 2024. However, since 2020, this growth has slowed to just 1% per year, mainly because wealthy people in China have been losing money. Meanwhile, billionaires in the US, Europe, and India are still seeing their wealth grow. Tech billionaires have gained the most, with their total wealth tripling from $789 billion to $2.4 trillion.
In Europe, billionaire investors are making their presence felt in the banking sector. Italy’s banking sector is going through a major change, and two billionaire families, Del Vecchio and Caltagirone, are making big moves to stay in control. They have built up significant stakes in Banca Monte dei Paschi di Siena (Paschi), positioning themselves to influence the mergers and acquisitions wave that is picking up speed. The government wants to turn Paschi into the country’s third major bank, while other lenders are scrambling to strike their own deals. Caltagirone and Del Vecchio have only tightened their grip, buying more Paschi shares to ensure a say in its future. While they are focused on financial gains, they also align with the government’s vision for a stronger banking system. Caltagirone, who’s close to the Meloni administration, sees Paschi as the foundation for Italy’s next banking giant.
Meanwhile, in the US, Warren Buffett remains a dominant force in the financial sector. Known for his long-term investment strategy, Buffett’s Berkshire Hathaway has a history of outperforming the market, delivering an average annual return of 12.1% over the past two decades, slightly ahead of the broader market’s 11.5%. He has long favored financial stocks for their steady profits and reliable dividends, particularly those with strong management teams. However, his recent decision to sell nearly $1 billion in shares of a major US bank, along with stakes in other financial institutions, signals a potential shift in strategy. This move could reflect concerns about the banking sector or a search for better opportunities elsewhere. Despite the sell-off, Buffett remains deeply invested in the bank he trimmed his position in, still holding a massive $30 billion stake. With billionaires reshaping the financial landscape, let’s take a closer look at the bank stocks they are betting on.
A view of a busy banking hall, customers engaging with banking staff to conduct their financial transactions.
Our Methodology
We analyzed Insider Monkey’s exclusive database of billionaire stock holdings to compile our list of the best bank stocks to invest in according to billionaires. We picked 15 best bank stocks to buy based on the highest number of billionaire investors, updated as of Q4 2024. These billionaires are founders or managers of some of the world’s leading hedge funds and companies.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Morgan Stanley (NYSE:MS)
Number of Billionaire Investors: 13
Morgan Stanley (NYSE:MS) is a global financial company that provides investment banking, wealth management, and trading services. It offers advisory, brokerage, lending, and asset management solutions for individuals, businesses, and governments. MS ranks 15th on our list of the best bank stocks to invest in.
On March 14, Morgan Stanley Infrastructure Partners (MSIP) announced that it has secured $4.1 billion for its latest fund, North Haven Infrastructure Partners IV, backed by top institutional investors like pension funds and sovereign wealth funds. MSIP has been operational for nearly 20 years and it invests in essential infrastructure like transportation, digital networks, energy transition, and utilities, aiming for long-term value and steady, inflation-linked returns.
Morgan Stanley (NYSE:MS) finished last year with record revenue in Q4 and its highest earnings per share in over 15 years. The firm reported full-year earnings of $7.95 per share and a 19% return on tangible equity. It also strengthened its capital position by accreting $5.5 billion to CET1 while continuing to reward shareholders through dividends and stock buybacks. Morgan Stanley has raised its quarterly dividend for three years straight, now at $0.925 per share, which was paid out on February 14.
On March 17, Erste Group analysts downgraded Morgan Stanley (NYSE:MS) from Buy to Hold, raising concerns about its future growth. While the company posted a solid 14.71% revenue increase over the past year, its investment banking division faces uncertainty due to US tariffs and a slowing economy. Analysts also expect loan loss provisions to rise in its interest-based income segment.
14. Truist Financial Corporation (NYSE:TFC)
Number of Billionaire Investors: 13
Truist Financial Corporation (NYSE:TFC) is a Charlotte-based financial services company serving the Southeastern and Mid-Atlantic US. The company offers deposit accounts, loans, asset and wealth management, insurance, investment brokerage, and digital banking. It also provides commercial lending, investment banking, treasury services, and real estate financing. On January 28, 2025, TFC announced a quarterly dividend of $0.52 per common share. The dividend was paid on March 3, to shareholders on record as of February 14.
Truist Financial Corporation (NYSE:TFC) had a solid fourth quarter, beating Wall Street’s profit expectations driven by strong investment banking and trading as capital markets picked up. Investment banking and trading income climbed nearly 59% from last year to $262 million in Q4 2024, though it was down 21% from the previous quarter. Net interest income grew by 2% to $3.64 billion, with net interest margin improving to 3.07% from 2.95% a year ago. The bank posted adjusted net income of $1.21 billion, topping estimates of $1.18 billion, while credit loss provisions dropped 18%. Looking ahead, Truist Financial Corporation (NYSE:TFC) expects revenue to grow 3% to 3.5% in 2025.
On January 7, 2025, HSBC raised its rating on Truist Financial Corporation (NYSE:TFC) shares from Hold to Buy and established a price target of $50.
13. Synchrony Financial (NYSE:SYF)
Number of Billionaire Investors: 13
Synchrony Financial (NYSE:SYF) is a consumer finance company based in Stamford, Connecticut. It offers a range of credit products, including credit cards, installment loans, and commercial financing. The company also provides private label and co-branded credit cards, as well as banking products like savings accounts, money market accounts, and CDs. It is one of the best bank stocks to invest in.
On January 30, Synchrony Financial (NYSE:SYF) announced that it is extending its partnership with HearingLife to continue offering CareCredit at its US hearing centers. As the exclusive financing partner, CareCredit provides flexible payment options for hearing exams, tinnitus care, implants, and hearing aids. With 600+ locations nationwide, HearingLife offers personalized care, while CareCredit is accepted at 11,000+ hearing centers, making treatment more accessible with flexible financing.
Synchrony Financial (NYSE:SYF) added 5 million new accounts during the fourth quarter of 2024, generating $48 billion in purchase volume, and increasing loan receivables by 2%. The company also saw improvements in delinquency trends and maintained cost discipline, leading to $774 million in net earnings. For the full year 2024, the company acquired nearly 20 million new accounts, financed over $182 billion in purchases, and achieved $3.5 billion in net earnings. SYF also expanded its partnerships, onboarding more than 45 new brands, including Virgin, Gibson, BRP, and tech-driven firms like Adit Practice Management Software and ServiceTitan.
In January 2025, Morgan Stanley upgraded Synchrony Financial (NYSE:SYF) stock to Overweight, expecting earnings to get a boost from the company’s preparations for the upcoming late fee rule. Goldman Sachs stuck with its Buy rating, pointing to strong performance and lower-than-expected delinquency rates. Meanwhile, JPMorgan also upgraded Synchrony from Neutral to Overweight, highlighting its attractive valuation and growth potential.
12. The Bank of New York Mellon Corporation (NYSE:BK)
Number of Billionaire Investors: 13
The Bank of New York Mellon Corporation (NYSE:BK) is a global financial services company that provides services like custody and trust, investment and wealth management, securities lending, and liquidity solutions. The company also specializes in clearing, prime brokerage, private banking, and corporate treasury services. Its client base includes central banks, asset managers, corporations, and high-net-worth individuals. BK is one of the best bank stocks to monitor.
On March 3, The Bank of New York Mellon Corporation (NYSE:BK) announced that it is selling 500,000 depositary shares priced at $1,000 each, raising $500 million. Investors will earn a 6.3% yearly dividend until March 20, 2030, after which the rate may change based on government bond rates. From 2030 onwards, BNY Mellon can choose to buy back these shares. The sale, managed by Deutsche Bank, Goldman Sachs, Morgan Stanley, RBC Capital Markets, UBS Investment Bank, and BNY Mellon Capital Markets, was expected to close on March 10, 2025.
In 2024, The Bank of New York Mellon Corporation (NYSE:BK) earned $4.3 billion in net income and $18.6 billion in revenue, 5% more than the previous year. Investment services fees jumped 7%, driven by new business, market growth, and increased client activity, while wealth management fees rose 3%. Despite a relatively stable market, foreign exchange revenue climbed 9% due to higher client trading. However, net interest income dipped slightly due to shifts in deposits, though stronger investment yields helped balance it out. To top it off, BNY returned 102% of its earnings to shareholders through dividends and stock buybacks last year.
11. Comerica Incorporated (NYSE:CMA)
Number of Billionaire Investors: 14
Comerica Incorporated (NYSE:CMA) is a Texas-based financial services company operating in the United States, Canada, and Mexico. It offers business banking, personal banking, and wealth management services, including loans, credit cards, investment management, and financial planning. It ranks 11th on our list of the best bank stocks to buy.
On February 25, Comerica Incorporated (NYSE:CMA) announced a quarterly dividend of $0.71 per common share, payable on April 1, to shareholders on record as of March 14. The company also declared a $1,406.25 dividend per Series A Preferred Stock share, which will be distributed on the same date to preferred shareholders on record.
Comerica Incorporated (NYSE:CMA)’s earnings per share dropped 12% to $1.20 in the fourth quarter of 2024, mainly due to rising expenses. Loan demand was weak, and the bank expects little to no loan growth in 2025, which is disappointing compared to its peers. Average loans dipped slightly to $50.6 billion, mostly due to commercial real estate loan paydowns. While net interest income is expected to grow 6%-7% in 2025, core NII will likely rise only around 3%. On the bright side, Comerica has a three-year transition period for the Direct Express program, which could help grow core deposits but will bring additional costs.
DA Davidson assigned a Neutral rating and a $67 price target for Comerica on March 5, noting that loan and deposit trends match forecasts. The bank expects a 1-2% drop in Q1 2025 net interest income. Despite this, the firm observed that Comerica is a stable stock as it maintains a strong 4.77% dividend yield and a 55-year streak of consistent payouts.
10. First Horizon Corporation (NYSE:FHN)
Number of Billionaire Investors: 14
First Horizon Corporation (NYSE:FHN), a parent company of First Horizon Bank, offers a wide range of financial services across three main segments – Regional Banking, Specialty Banking, and Corporate. It provides everyday banking services for businesses and individuals, including loans, deposits, and wealth management. It is one of the best bank stocks to invest in.
On January 28, 2025, First Horizon Corporation (NYSE:FHN) announced a quarterly dividend of $0.15 per share for common shareholders. The dividend is distributable on April 1, to shareholders on record as of March 14. Dividends were also declared for the company’s Series C, Series E, and Series F Preferred Stock, and Class A Non-Cumulative Perpetual Preferred Stock. The company returned $930 million to shareholders through dividends and buybacks while keeping strong capital levels.
First Horizon Corporation (NYSE:FHN) increased adjusted EPS by $0.12 from last year, achieving a 12.6% return on tangible common equity. Despite lower interest rates, the company maintained a solid net interest margin of 3.35%, while counter cyclical businesses added $55 million to revenue. Loan and deposit growth remained strong at over 3% and 2%, respectively. FHN’s disciplined underwriting led to a lower net charge-off ratio of 18 basis points. Net interest income rose by $2 million, as lower deposit costs offset lower loan yields.
9. HDFC Bank Limited (NYSE:HDB)
Number of Billionaire Investors: 14
HDFC Bank Limited (NYSE:HDB), headquartered in Mumbai, India, provides banking and financial services across India, Bahrain, Hong Kong, Singapore, and Dubai. The bank offers deposit accounts, multiple category loans, credit/debit cards, insurance, investments, and trade finance. It also provides digital banking, payment processing, and specialized financial solutions. It is one of the best bank stocks, with 14 billionaire investors holding positions in it. Raymond James Financial Inc. picked up a new stake in HDFC Bank Limited (NYSE:HDB), according to its latest SEC filing. The firm bought 618,458 shares in the fourth quarter, valued at about $39.5 million.
On March 5, HDFC Bank Limited (NYSE:HDB) partnered with the Indian Air Force and CSC Academy to launch Project HAKK, supporting defence veterans and their families. Under its Parivartan initiative, the bank will set up 25 centres across Air Force units to provide financial training, pension assistance, and access to banking services, along with more than 500 government and business services.
HDFC Bank delivered ₹652.8 billion in consolidated net revenue and ₹176.6 billion in profit after tax (PAT) for Q3 2024. Adjusted PAT, factoring in trading gains, mark-to-market adjustments, and prior-year provisions, saw a 13.1% increase. Earnings per share for the quarter were ₹23.1, with a book value per share of ₹656.6. Net interest income climbed 7.7% to ₹306.5 billion, while the bank’s core net interest margin was 3.43% on total assets and 3.62% on interest-earning assets. Additionally, the bank paid ₹17.9 billion in dividends. HDFC Bank Limited (NYSE:HDB) is one of the best bank stocks to invest in according to Wall Street titans.
8. JPMorgan Chase & Co. (NYSE:JPM)
Number of Billionaire Investors: 14
JPMorgan Chase & Co. (NYSE:JPM), an American multinational banking and financial services giant, ranks 8th on our list of the best bank stocks to buy. In February 2025, the company declared a big move in private credit, announcing at its 30th annual Global Leveraged Finance Conference that it is committing $50 billion from its balance sheet, plus nearly $15 billion from co-lenders. This expansion aims to strengthen its direct lending capabilities and offer tailored credit solutions for clients’ changing needs.
JPMorgan Chase & Co. (NYSE:JPM) reported a 50% jump in net income to $14 billion and a 10% rise in net revenue to $43.7 billion in the fourth quarter of 2024. While net interest income dipped 3% to $23.5 billion, noninterest revenue surged 29% to $20.3 billion. Operating expenses dropped 7% to $22.8 billion, but after adjusting for last year’s $2.9 billion FDIC special assessment, they actually rose 5%, mainly due to higher pay, brokerage costs, and tech investments. The bank also set aside $2.6 billion for credit losses, with net charge-offs rising to $2.4 billion, mostly from Card Services.
On March 12, Truist Securities maintained a Hold rating on JPMorgan Chase & Co. (NYSE:JPM) with a $268 price target. CFO Jeremy Barnum noted slight weakness in consumer spending but emphasized the bank’s stability and 14-year dividend growth.
7. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Billionaire Investors: 15
The Goldman Sachs Group, Inc. (NYSE:GS) is an American financial powerhouse that serves corporations, governments, and individuals worldwide. It operates through three main segments – Global Banking & Markets, which handles financial advisory, underwriting, lending, and trading; Asset & Wealth Management, which manages investments and provides financial planning and private banking; and Platform Solutions, which includes credit cards, transaction banking, and cash management. It is one of the best bank stocks to monitor. On January 13, Goldman Sachs launched the Capital Solutions Group to boost its offerings in private credit, private equity, and more. This new group brings together financing and risk management services to better serve clients.
The Goldman Sachs Group, Inc. (NYSE:GS) reported net revenue of $53.51 billion and net earnings totaling $14.28 billion for full-year 2024. In the fourth quarter, revenue was $13.87 billion, with earnings of $4.11 billion. Earnings per share for the year climbed to $40.54, up from $22.87 in 2023, while Q4 EPS rose to $11.95, compared to $5.48 in Q4 2023 and $8.40 in Q3 2024. The strong performance was driven by its Global Banking & Markets division, which generated $34.94 billion in revenue, and Asset & Wealth Management, which contributed $16.14 billion. The latter saw assets under supervision grow by 12% to a record $3.14 trillion.
On January 15, The Goldman Sachs Group, Inc. (NYSE:GS) declared a $3.00 per share quarterly dividend, in line with previous. The dividend will be distributed on March 28, to shareholders on record as of February 28.
6. Nu Holdings Ltd. (NYSE:NU)
Number of Billionaire Investors: 17
Nu Holdings Ltd. (NYSE:NU) is a Brazilian company operating a digital banking platform in several countries across Latin America, the United States, and Europe. It offers a range of financial services, including digital credit and prepaid cards, mobile payments, personal and business accounts, investment options such as equities and cryptocurrencies, borrowing solutions, and insurance products. NU ranks 6th on our list of the best bank stocks to buy.
Nu Holdings Ltd. (NYSE:NU), the parent company of Nubank, announced in late-January that it is considering moving its legal base to the UK as part of a global expansion that may include the United States too. This move would be a significant post-Brexit win for the UK. Nubank, with over 100 million customers in Latin America, sees favorable conditions in the US due to potential regulatory changes favoring digital banking and cryptocurrency services.
Nu Holdings Ltd. (NYSE:NU) has seen incredible growth, adding 20.4 million new customers in 2024 and reaching a total of 114.2 million. In Brazil, Nu has become the third-largest financial institution by customer base, with 58% of the adult population using its services. Mexico has also hit a milestone, surpassing 10 million customers, while Colombia has reached 2.5 million, showing strong momentum after launching its Nu Cuenta product.
In the fourth quarter of 2024, the company’s net income jumped to $552.6 million from $360.9 million the previous year, and adjusted net income rose to $610.1 million. Revenue soared by 50% year-over-year to $3 billion, with deposits increasing by 55% to $28.9 billion. The average monthly revenue per active customer grew by 23% to $10.7, and the loan-to-deposit ratio was 39%. These figures indicate Nu’s expanding presence across Latin America.
5. Citigroup Inc. (NYSE:C)
Number of Billionaire Investors: 17
Citigroup Inc. (NYSE:C) is a global financial services company operating through five main segments – Services, Markets, Banking, US Personal Banking, and Wealth. It offers a wide range of services, including cash management, investment banking, retail banking, and wealth management for high-net-worth clients. On March 13, Citigroup announced that it is cutting its reliance on IT contractors from 50% to 20% and plans to hire more full-time staff, increasing its IT workforce from 48,000 to 50,000. This move aims to improve internal controls and address regulatory concerns over data governance.
On January 14, Citigroup Inc. (NYSE:C) announced a quarterly dividend of $0.56 per common share, which was paid on February 28, 2025. The company also plans on distributing dividends on its preferred stock, with payments ranging from $9.6875 to $31.25 per depositary receipt. These dividends will be paid to shareholders who own the stock by specific record dates between January 17 and February 28, 2025.
In Q4 2024, Citigroup Inc. (NYSE:C) reported a net income of $2.9 billion, which translates to $1.34 per share, on revenues of $19.6 billion. This is a significant improvement from the same period last year, when it faced a net loss of $1.8 billion, or -$1.16 per share, on revenues of $17.4 billion. The growth in revenue was driven by strong performances across all of Citigroup’s businesses, along with a smaller impact from currency devaluation in Argentina. Overall, the improved results are largely due to higher revenues, lower expenses, and reduced credit costs. It is one of the best bank stocks as it is a favorite among Wall Street hedge funds and billionaires.
4. Wells Fargo & Company (NYSE:WFC)
Number of Billionaire Investors: 18
Wells Fargo & Company (NYSE:WFC) is one of the best bank stocks, as it is backed by 18 billionaire investors. It is one of the largest American banks that provides a wide range of services, including loans, investment banking, wealth management, and retail mortgages across 35 countries, serving over 70 million customers. On March 13, Royal Bank of Canada upgraded Wells Fargo from Sector Perform to an Outperform rating, setting a price target of $80. This suggests a potential increase of 12.75% from its current price. Analyst Gerard Cassidy noted that WFC is making progress in addressing regulatory issues and is on track to achieve a strong return on equity once certain restrictions are lifted.
In Q4 2024, Wells Fargo & Company (NYSE:WFC)’s diluted earnings per share rose 11% from last year. Fee-based revenue jumped 15%, helping balance out the expected drop in net interest income. Expenses went down, credit trends stayed stable, and the bank kept a strong balance sheet with an 11.1% CET1 ratio.
Shareholders were awarded returns of $25 billion in total, including $20 billion in stock buybacks, a 64% year-over-year increase, and a 15% boost in dividends. Wells Fargo & Company (NYSE:WFC) paid a $0.40 per share quarterly dividend to shareholders on March 1. Overall, the company’s credit card business remains strong, net checking accounts saw meaningful growth, and mobile customers increased by 1.5 million in 2024. Investment banking and trading revenues grew by double digits, driven by talent and tech investments.
3. Bank of America Corporation (NYSE:BAC)
Number of Billionaire Investors: 18
Bank of America Corporation (NYSE:BAC) ranks 3rd on our list of the best bank stocks. It offers financial services to individuals, businesses, and governments through four key divisions. Consumer Banking manages accounts, credit cards, loans, and mortgages. Global Wealth & Investment Management provides investment, brokerage, and retirement solutions. Global Banking includes commercial lending, treasury management, and advisory services, while Global Markets specializes in trading and risk management.
Bank of America Corporation (NYSE:BAC)’s digital banking hit a record 26 billion interactions last year, reflecting an increase of 12%. More than 58 million clients used tools like proactive alerts, which grew 7% to nearly 12 billion updates. Account logins reached 14.3 billion, with a record 3.9 billion in Q4, up 16% year-over-year. Meanwhile, BAC’s AI assistant Erica handled 676 million interactions, surpassing 2.5 billion total since launch.
On January 29, Bank of America Corporation (NYSE:BAC) approved a quarterly cash dividend of $0.26 per common share, set to be distributed on March 28, 2025, to shareholders on record as of March 7. Additionally, a $1.75 per share dividend was announced for the 7% Cumulative Redeemable Preferred Stock, Series B, to be paid on April 25, to shareholders on record by April 11.
In Q4 2024, Bank of America Corporation (NYSE:BAC)’s net income reached $6.7 billion, which was more than double the $3.1 billion from a year ago. Revenue grew 15% to $25.3 billion, due to higher asset management and investment banking fees, as well as strong trading performance. Similarly, net interest income rose 3% to $14.4 billion, driven by solid market activity, loan growth, and asset repricing, though lower interest rates offset some gains. In total, the bank returned $5.5 billion to shareholders during Q4, including $2 billion in dividends and $3.5 billion in stock buybacks.
2. The Charles Schwab Corporation (NYSE:SCHW)
Number of Billionaire Investors: 19
The Charles Schwab Corporation (NYSE:SCHW) is a financial services company that offers wealth management, brokerage, banking, and advisory services in the United States and internationally. On March 17, JMP Securities assigned a Market Outperform rating on the stock and maintained a $94 price target on the shares, citing strong performance in February. Schwab added $48 billion in net new assets, a 44% jump from last year. Analysts remain bullish on the company’s momentum in brokerage and banking. It is one of the best bank stocks to buy according to billionaires.
On January 29, The Charles Schwab Corporation (NYSE:SCHW) announced a $0.27 per share quarterly dividend, an 8% increase from its last dividend of $0.25. The dividend was distributed to shareholders on February 28.
In the fourth quarter of 2024, The Charles Schwab Corporation (NYSE:SCHW) reported $1.8 billion in net income and earnings per share of $0.94. The company added $115 billion in new assets, bringing the yearly total to $367 billion, a 20% increase from last year. Revenue grew 20% to $5.3 billion, fueled by higher client engagement, increased margin utilization, and record inflows into Managed Investing Solutions. Charles Schwab also improved its pre-tax profit margin to 43.3%, with GAAP and adjusted EPS climbing 84% and 49%, respectively.
1. Capital One Financial Corporation (NYSE:COF)
Number of Billionaire Investors: 22
Capital One Financial Corporation (NYSE:COF) is a financial services company that offers multiple banking products including checking and savings accounts, credit cards, auto loans, and commercial lending. On February 18, Capital One announced that it is moving forward with its acquisition of Discover Financial Services after shareholders from both companies voted overwhelmingly in favor of the deal. The deal is expected to close in early 2025, pending regulatory approval. COF holds the top spot on our list of the best bank stocks, since it is the preferred pick of billionaire investors.
On February 7, Capital One Financial Corporation (NYSE:COF) announced a quarterly dividend of $0.60 per share, which was paid on March 3. The company has distributed dividends every quarter since it became a separate entity on February 28, 1995.
Capital One Financial Corporation (NYSE:COF) closed the fourth quarter of 2024 with a net income of $1.1 billion and a full-year profit of $4.8 billion. Adjusted for Discover integration costs and legal reserves, earnings per share came to $3.09 for the quarter and $13.96 for the year. The company also contributed $100 million to philanthropy during the quarter. However, liquidity reserves dropped by $8 billion to $124 billion, with cash holdings decreasing to $43 billion, largely because of seasonal increases in card loans and funding maturities. Despite this, consumer banking deposits continued to grow. The company upheld a solid liquidity coverage ratio of 155%, though loan growth, dividend payments, and $150 million in share repurchases offset its net income.
Overall, Capital One Financial Corporation (NYSE:COF) ranks first on our list of the best bank stocks to buy according to billionaires. While we acknowledge the potential of COF to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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