5 Hidden Trends Shaping Bank Stocks in 2025

Using the Growth Score screen to find potential winners amidst the chaos, find the Icarus banks that have flown too high, and some names you might not know of (but should).

Markets are pure chaos right now. Headlines shift by the hour. Tariffs, CPI shocks, inflation running hot, rates whipsawing—nothing is stable. The noise is deafening. The data? A moving target. Our president? Yea, he changes is mind a little here and there.

But if you know where to look, the chaos tells a story. And for bank investors, clarity isn’t found in the headlines—it’s buried in the numbers. It’s buried in the ether of results.

That’s why I do the Growth Score, and that’s why I know you all appreciate it.

And this isn’t sorcery or withcraft as some say, it’s wisdom.

Who’s Winning & Who’s Losing?

Let’s break it down. Among theses categories, here’s who’s making waves:

• Best EPS Growers (5-Year): The elite few proving their model works across cycles. These are the names delivering compounding returns, year after year.

• Best TBVPS Growers (5-Year): Book value doesn’t lie. These banks are building balance sheet strength, not just playing the earnings game.

• Worst EPS Growers (3-Year): The ones struggling to keep up. Some are temporary victims of macro forces. Others? Structural problems in disguise.

• Price Leaders (1-Year): Momentum matters. These stocks have dominated in the past year, whether it’s fundamentals, sentiment, or pure flows driving them.

• Price Laggards (1-Year): The names investors have left for dead. Sometimes, that’s deserved. Sometimes, it’s opportunity.

But first a quick reminder why EPS & TBV matter …

Why Tangible Book Value (TBV) Matters

TBV is the foundation. It’s the real capital a bank has—what would be left if everything shut down tomorrow. Jamie Dimon once said, 'Over the long term, book value per share is a good proxy for value.' It’s the purest measure of what a bank is actually worth.

Earnings can be manipulated. A one-time gain, an aggressive loan book, or an accounting maneuver can dress up EPS. But TBV tells you if a bank is truly compounding its core equity, or just riding the cycle.

Banks that consistently grow TBVPS aren’t just surviving market cycles—they’re building lasting value. These are the institutions that will thrive, regardless of where interest rates go or how short-term sentiment swings.

Why EPS Growth Rules the Game

EPS growth is the scoreboard. It’s the single most powerful driver of stock performance over time. Investors pay for earnings—period. If a bank is expanding earnings per share, it’s either compounding capital efficiently, growing its loan book wisely, or managing its balance sheet better than the rest.

But not all EPS growth is created equal. Some banks inflate EPS by cutting expenses or reducing loan loss provisions—moves that might look good today but spell trouble later. Others drive growth by taking on more risk, which works—until it doesn’t.

The best banks? They grow EPS organically and sustainably, by expanding their net interest income, improving efficiency, and scaling their operations without overextending leverage. That’s where real wealth is built.

And now onto the top 20’s …