Which bank stock is good? A comprehensive guide to choosing bank stocks with easy-to-understand information for investors in 2026

If you’re confused about which bank stocks are good for investing in 2026, the answer depends on your investment goals, risk tolerance, and investment horizon. This article will help you understand the characteristics of different banks and choose which bank stocks are good for your situation.

Why do bank stocks remain a popular investment choice?

Despite the market volatility in 2025, bank stocks still stand firm and attract investors. The main reasons are:

1. Stable dividends
Large banks with strong financial bases tend to pay consistent and attractive dividends (generally 3-6% per year). For investors seeking steady cash flow, this is an advantage over high-growth stocks that do not pay dividends.

2. Stability and liquidity
Banks are heavily regulated, reducing the risk of bankruptcy. Additionally, bank stocks are highly liquid, making them easy to buy and sell.

3. Opportunities from economic conditions
Although there are signals of changing interest rate environments, bank stocks benefit from relatively stable and higher interest rates compared to past decades, supporting their net interest income.

4. Digital transformation
Banks are investing heavily in mobile apps and digital platforms, creating new growth opportunities and reducing operational costs.

Which Thai bank stocks are good? Key options for domestic investors

For Thai investors considering the Stock Exchange of Thailand (SET), several major banks are worth monitoring:

BBL - Bangkok Bank: The stability leader

Bangkok Bank (BBL) is a leader in serving large corporate clients, with the most extensive overseas branch network. This helps diversify risk and support international business.
Market Cap: about 275 billion THB
P/E ratio: around 7.5
Dividend yield: approximately 4.8% per year

Most analysts see BBL as offering steady growth, though not as rapid as tech-focused banks. It remains a safe choice for investors prioritizing stability over explosive growth.

KBANK - Kasikornbank: Digital banking pioneer

Kasikornbank (KBANK) is recognized as a leader in digital banking in Thailand, with millions of users on its K PLUS app. It also has a strong SME banking segment, a high-potential customer group.
Market Cap: about 300 billion THB
P/E ratio: 7
Dividend yield: about 5.2% per year

Investors interested in a mid-sized bank with high digital components may consider KBANK a good option.

SCB/SCBX - Siam Commercial Bank / SCBX: A giant transforming

Siam Commercial Bank (now SCBX) is undergoing major restructuring to become a fintech group, aiming to build integrated platforms and invest in digital assets.
Market Cap: about 350 billion THB
P/E ratio: 9
Dividend yield: around 4%

This restructuring is exciting but comes with short-term uncertainties. Suitable for investors with higher risk tolerance and long-term horizon.

KTB - Krungthai Bank: State bank potential

As a government-owned commercial bank, KTB benefits from being a primary channel for government projects. Its “Pao Tang” app has a large user base, providing data for new financial services.
Market Cap: about 240 billion THB
P/E ratio: 6.5 (quite low)
Dividend yield: about 5.5%

For value investors seeking undervalued stocks, KTB could be a worthwhile consideration.

TTB - TMBThanachart Bank: Growth from merger

TTB resulted from the merger of TMB and Thanachart Bank. Currently, it’s in the integration and efficiency improvement phase.
Market Cap: about 170 billion THB
P/E ratio: 8
Dividend yield: around 5%

High dividends and growth potential from restructuring make TTB attractive.

BAY - Bank of Ayudhya: Backed by Japanese group

Bank of Ayudhya (BAY) is majorly owned by Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group. This provides access to advanced technology, capital, and networks.
Market Cap: about 220 billion THB
P/E ratio: 7.8
Dividend yield: about 3.5%

A good pick for those interested in a bank with international backing and regional growth prospects.

Which foreign banks are top choices globally?

For diversification into global banking giants, consider:

JPM - JPMorgan Chase & Co.: U.S. giant

Market Cap: approx. 18.5 trillion THB
P/E ratio: 11.5
Dividend yield: 2.5%

JPM offers diversified services: retail banking, investment banking, wealth management, asset management. Its strong brand and tech investments make it a top global bank.

BAC - Bank of America: Reasonably priced

Market Cap: second largest in the U.S.
P/E ratio: 10
Dividend yield: 2.8%

Focuses on retail banking, benefiting from rising interest rates previously. Its stock is relatively cheaper than JPM, but with asset quality risks to monitor.

HSBC - HSBC Holdings plc: Western-Asian bridge

Market Cap: about 5 trillion THB
P/E ratio: 6.5
Dividend yield: 6%

HSBC connects Western and Asian markets, especially in Hong Kong and China. Risks include geopolitical tensions.

DBS - DBS Group Holdings Ltd: ASEAN leader

Market Cap: about 2.5 trillion THB
P/E ratio: 10.5
Dividend yield: 4.5%

Leading in digital banking in Southeast Asia, benefiting from regional economic growth.

ICBC - Industrial and Commercial Bank of China: Large but risky

Market Cap: approx. 7.5 trillion THB
P/E ratio: 4
Dividend yield: 6.5%

Low P/E and high dividend look attractive, but investors must understand risks related to China’s regulatory environment, asset quality, and governance.

MUFG - Mitsubishi UFJ Financial Group: Japan’s largest

Market Cap: significant in Japan
P/E ratio: 9.5
Dividend yield: 3%

Potentially benefiting if Japan’s interest rates rise, but also exposed to Japan’s slow growth. Suitable for long-term investors.

How can Thais invest in bank stocks? Practical guide

Once you understand which bank stocks are good, the next step is to find ways to invest. Fortunately, Thai investors have several convenient options:

Investing in Thai bank stocks: Easy via brokerage accounts

To buy stocks listed on SET:

Step 1: Open a securities trading account with a licensed broker.
Most applications can be completed online—no need to visit branches.

Step 2: Deposit funds into your account as collateral for trading.

Step 3: Place buy/sell orders via broker’s app or trading platform (e.g., Settrade Streaming).

Investing in foreign bank stocks: Access global markets

Options include:

Option 1: Use Thai brokerage firms that offer international securities trading.
Many brokers facilitate buying stocks on NYSE, LSE, HKEX, etc., simplifying account management.

Option 2: Trade CFDs (Contracts for Difference).
Advantages:

• Lower initial capital (leverage)
• Profit from both rising and falling markets
• High liquidity and quick trading
• Low fees

Risks:

• Higher risk due to leverage
• Not suitable for inexperienced investors

Summary: Which bank stocks are good depends on you

The question “Which bank stocks are good?” has no single answer. It depends on your personal situation.

For steady dividends: Choose large Thai banks like BBL, KBANK, KTB, or international banks like HSBC, ICBC.

For growth potential: Consider KBANK with its digital strength or SCBX undergoing restructuring.

For international diversification: JPM or BAC for U.S. stability, DBS for ASEAN growth.

The most important is to thoroughly research each bank’s financial data, understand your risk appetite, and align your choices with your goals. By doing so, investing in bank stocks can become a smart and effective way to build long-term wealth.