Foreign banks like HSBC and UBS are good investments for 2025 due to restructuring efforts

From Zacks Investment Research: 2024-12-24 10:46:24

Banks worldwide are focusing on restructuring efforts to enhance core operations, despite higher expenses. The Zacks Foreign Banks Industry faces revenue challenges due to uneven economic recovery, but lower interest rates offer support. Industry leaders like HSBC and UBS are set to benefit from streamlining efforts and low rates. Global central banks lowering interest rates may boost foreign banks’ net interest income and non-interest income. Business restructuring initiatives and the uneven global economic recovery post-COVID-19 also impact industry players. The Zacks Industry Rank for Foreign Banks is currently #74, indicating bright prospects for the sector.

HSBC and UBS are two foreign bank stocks to consider investing in. HSBC has been restructuring operations to enhance efficiency and expand in Asia, while UBS aims to release capital through business restructuring and JVs. Both companies have shown positive stock performance and upward earnings estimates. HSBC is trading at a discount compared to the market, while UBS is focusing on becoming more digital and data-driven to provide competitive services. The industry as a whole has underperformed the S&P 500 and the finance sector in the past two years.



Read more at Zacks Investment Research: 2 Foreign Bank Stocks to Buy From a Flourishing Industry for 2025 – December 24, 2024