Best finance stocks to watch

Finance stocks in brief

Financial services — or finance — stocks cover many different types of companies which manage money, including banks, insurance firms, investment companies and real estate businesses.

Banks are perhaps the most well-known finance companies, as they provide the loans, credit cards, mortgages and deposit system upon which the world’s economy depends. Banks tend to be heavily influenced by external factors such as interest rate movements and wider economic growth. The FTSE 100 offers multiple banks including HSBC and Lloyds.

Insurance companies are also very popular financial sector stocks. These types of businesses provide policies to protect against financial loss; they tend to be more stable as premiums are based on very carefully calculated risks, but individual stocks can still struggle in the event of weaker economic growth or single event disasters. Legal & General is perhaps the best-known insurance sector stock in the UK.

Investment firms also make the financial sector cut, offering asset management, private equity and hedge fund services. Most investors will have heard of the likes of BlackRock and Vanguard, with these firms again highly correlated with wider economic growth. Meanwhile, real estate firms including REITs like the Supermarket Income REIT are also popular financial sector choices, though obviously sensitive to interest rates and property demand.

Perhaps the most-watched segment of the sector is Fintech stocks, which blend traditional financial services with cutting-edge technological advances to provide digital baking, payment processing and even block-chain services. They tend to be higher risk but with correspondingly magnified rewards on offer — with many growing sharply over the past few years. Top trends to watch in the Fintech segment include the emergence of artificial intelligence trading algorithms, ESG investing and new digital assets.

As a general rule, the largest finance stocks enjoy stable cash flow and a strong regulatory framework that makes them popular investments for individuals seeking lower risk companies. They also offer some diversification given the breadth the sector provides — but are usually sensitive to economic downturns, market volatility, or even competitive pressure as companies innovate.

Perhaps the most understated risks involve changing regulation or black swan credit risks — for example, the 2008 Global Financial Crisis, or more recently the collapse of Silicon Valley or the Eurozone Crisis. While the sector is heavily regulated, the world is more interconnected than ever before, which means that a single risk event can impact the entire sector.

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Investors look to grow their capital through share price returns and dividends - if paid.

But the value of investments can fall as well as rise, past performance is no indicator of future returns, and you could get back less than your original investment.

We also offer many Finance-focused ETFs, including the popular SPDR MSCI World Financials UCITS ETF, which tracks the financial sector of the developed markets worldwide. Top holdings include JP Morgan Chase and Berkshire Hathaway — and it sports an expense ratio of just 0.3%.

Top Finance stocks to watch

These were the ten largest Finance stocks in the world by market capitalisation at the start of February 2025.

1. JP Morgan Chase (NYSE: JPM)
2. Visa (NYSE: V)
3. Mastercard (NYSE: MA)
4. Bank of America (NYSE: BAC)
5. ICBC (SHA: 601398, HKG: 1398)
6. Wells Fargo (NYSE: WFC)
7. Agricultural Bank of China (SHA: 601288, HKG: 1288)
8. Morgan Stanley (NYSE: MS)
9. American Express (NYSE: AXP) (NYSE: MS)
10. China Construction Bank (SHA: 601939, HKG: 0939)

JP Morgan Chase (NYSE: JPM)

JP Morgan Chase currently the largest financial institution in the world. It provides investment banking, commercial banking, asset management, and treasury services to millions of clients around the world.

Its competitive advantage lies in its vast global reach, diversified revenue streams, and strong technology-driven financial solutions. The firm's scale alone allows it to serve large multinational clients, governments, and high-net-worth individuals with industry-leading financial products that cannot be sourced elsewhere.

In 2024, JPMorgan Chase generated net revenue of $178 billion, driving pre-tax profit to a record $75.1 billion.

Visa (NYSE: V)

Visa is a global leader in digital payments, facilitating roughly 720 million transactions every day across more than 200 countries through its secure and trusted network. The company enjoys an extensive merchant and consumer base alongside strong brand recognition — and is continuously innovating in payment security and digital transactions.

With a business model based on transaction fees rather than issuing credit, Visa arguably operates with lower risk than many other financial sector business, and with high profitability.

Visa's net revenue increased by 10% year-over-year in fiscal year 2024 to $35.9 billion. This was accompanied by a 17% increase in GAAP EPS to $9.73.

Mastercard (NYSE: MA)

Mastercard, like Visa, is a major payment technology company that connects consumers, financial institutions, and businesses worldwide. The business sports advanced cybersecurity measures and well-known strategic partnerships

It’s also adapted well to emerging trends like contactless and blockchain payments. Unlike banks, it does not issue cards or extend credit, keeping a lid on risk while capitalising on global transaction volume growth.

Net revenue in 2024 rose by 13% year-over-year to $28.2 billion, while diluted EPS was up 19% to $13.89.

Bank of America (NYSE: BAC)

Bank of America is a leading US financial institution offering banking, investment, and wealth management services — and is a rival to JP Morgan.

It enjoys a massive customer base including 69 million consumer and small business clients in the US. In addition to this strong retail banking network, Bank of America is also a digital banking leader, with millions of active mobile users, allowing it to leverage AI and data analytics to improve its offering.

Total revenue in 2024 rose slightly to $101.9 billion compared to 2023, with diluted EPS coming in at $3.21.

ICBC (SHA: 601398, HKG: 1398)

Industrial & Commercial Bank of China is by some metrics the world's largest bank by assets, providing commercial banking, asset management, and investment banking services.

Its key strengths include strong backing from the Chinese government, an extensive domestic and international network, and dominance in China's lending market. Its ability to finance large infrastructure projects gives it a strategic role in China’s economic expansion and makes the bank almost irreplaceable in the Communist country’s financial ecosystem.

2023 saw ICBC generate revenue of circa $118.3 billion.

Wells Fargo (NYSE: WFC)

Wells Fargo is another major US bank offering consumer and corporate banking, investment and mortgage services. It arguably enjoys a stronger deposit base than many of its peers and is popular for its extensive branch network and expertise in home lending.

While it has faced regulatory challenges in the past, the bank’s focus on cost-cutting and digital transformation has helped to maintain its overall profitability.

In 2024, earnings from net interest income were $47.7 billion, while return on equity was 11.4%.

Agricultural Bank of China (SHA: 601288, HKG: 1288)

Agricultural Bank of China serves China’s vast rural economy while also providing commercial banking services nationwide. While most Chinese citizens live in cities, a third of China’s population still live in the countryside.

This deep penetration into rural areas, alongside government support and its ability to capitalise on China’s growing financial inclusion efforts have seen the bank grow over the decades into a finance powerhouse — with its lending operations now playing a crucial role in supporting China's agricultural and infrastructure sectors.

In 2023, the company generated earnings of €42.1 Billion, a decrease compared to its 2022 earnings of €44 Billion.

Morgan Stanley (NYSE: MS)

Morgan Stanley is a global financial services firm specialising in investment banking, wealth management, and asset management. It has a dominant position in institutional securities, a strong wealth management division, and an uncanny ability to attract high-net-worth clients.

The firm’s expertise in capital markets and advisory services gives it an edge in large corporate transactions where rivals are perhaps not quite as specialist.

In 2024, Morgan Stanley produced revenue of $61.8 billion, with EPS of $7.95 and a ROTCE of 18.8%.

American Express (NYSE: AXP)

American Express is a financial services company focused on credit cards, payment solutions, and travel services, targeting high-income consumers and businesses. It’s well-known for its closed-loop network, which allows for premium rewards, superior customer service, and being the provider of choice for high-spending clientele. This model results in higher transaction fees and strong brand loyalty among affluent customers.

2024 saw revenue rise by 10% year-over-year to a record $65.9 billion, driving earnings per share up by 25% to $14.01.

China Construction Bank (SHA: 601939, HKG: 0939)

China Construction Bank is one of China's largest banks, offering retail and corporate banking, investment services, and infrastructure financing.

Unsurprisingly given the name, it has a major role in funding China’s urbanisation efforts and large-scale infrastructure projects. With strong government ties and a vast domestic network, it remains a key player in China's financial system.

2023 saw the bank generate CNY155.6 billion in revenue for the full year.

Finance stocks summed up

• Financial services stocks cover companies which manage money, including banks, insurance firms, investment companies and real estate businesses
• Banks are perhaps the most well-known finance companies, as they provide the loans, credit cards, mortgages and deposit system upon which the world’s economy depends
• Fintech stocks blend traditional financial services with cutting-edge technological advances to provide digital baking, payment processing and block-chain services
• Key risks involve changing regulation or black swan credit events