In this article, we will examine the 10 Best European Bank Stocks to Buy Now.
European stocks could make a comeback, says JPMorgan research published on November 7, 2025. The research lists “an improving macro backdrop, rising liquidity, a better China outlook, and fiscal stimulus” as the key supportive factors. JPMorgan estimates that by year-end 2025, the Financials market, which incorporates banks, will see a 0.5% EPS growth, and 9.5% in 2026.
This outlook comports with a Reuters analysis from late August 2025, which noted that European bank stocks are resurgent. At the time, European bank shares were up 40% year-to-date, a figure that has now climbed to 54% as of November 11, 2025.
And if recession risk was a headwind, it wouldn’t dent European banks’ stellar run. That is, if ING Bank CEO’s words are anything to go by. Steven van Rijswijk, the CEO and Chairman of the Executive Board, told Bloomberg’s Romaine Bostick and Katie Greifeld that recession risk in Europe has declined recently, which is contrary to fears from earlier in the year. Van Rijswijk added that European GDP growth is close to 2%, slightly lower than that of the United States, but still a positive indicator for the region. And investment activity in Europe is picking up, with larger infrastructure and defense funds being discussed in Germany and other countries.
But some among these lenders are lagging. The Reuters analysis pointed out that Spanish and German banks are the clear winners, given a vibrant economy in Spain and a high business morale in Germany due to a fiscal stimulus. In contrast, the United Kingdom, French, and Swiss banks are struggling. In Switzerland, US tariffs, new capital regulations, and 0% rates are a huge challenge. Political turmoil is dragging business in France, and a recommendation for higher taxes on British banks has suppressed demand for the stocks.
That said, this analysis presents the best European bank stocks to buy now.
Our Methodology
To identify the 10 Best European Bank Stocks to Buy Now, we used the Finviz stock screener to select European banks with a market capitalization over $2 billion as of November 13, 2025. We narrowed the list further by considering hedge fund interest, based on the latest holdings data from Insider Monkey’s Q2 2025 13F filings database. The final list is ranked in ascending order by market capitalization.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All data is as of market close on November 11, 2025.
Best European Bank Stocks to Buy Now
10. Erste Group Bank AG (OTCMKTS:EBKDY)
Market Capitalization: $42.18 billion
Number of Hedge Fund Holders: N/A
Erste Group Bank AG (OTCMKTS:EBKDY) is one of the best European bank stocks to buy now. On November 7, analysts at UBS lifted their price target for the Erste Group Bank AG (OTCMKTS:EBKDY) stock to €97 from €93. They also kept a Buy rating, a decision that follows the lender’s stronger-than-expected Q3 2025 results.
Erste reported third-quarter 2025 earnings on October 30. The company’s pre-tax profit for the quarter exceeded consensus by 7%, and net interest income beat by 3%. Net fee and commission income also beat forecasts by 2%. Erste Group Bank reported earnings per share of €2.20, with revenue surpassing €2.9 billion for the first time.The bank’s good results came from higher fee income and smart digital projects, even though the economy in Central and Eastern Europe.
Also on UBS’s radar was the fact that Erste’s management raised 2025 guidance to more than 2% NII growth (from more than 0%). The cost-to-income ratio is also expected to reach around 48% (from under 50%). UBS incorporated the guidance in their model, which led to lifting EPS estimates by 3–4% for FY 2025–2027.
Erste Group Bank AG (OTCMKTS:EBKDY) is an Austrian financial services provider headquartered in Vienna, with operations concentrated in Central and Eastern Europe. Its core businesses include retail banking, corporate banking, and asset management. The lender serves more than 16 million clients across countries such as Austria, the Czech Republic, Slovakia, Hungary, Romania, Croatia, and Serbia.
9. NatWest Group PLC (NYSE:NWG)
Market Capitalization: $65.81 billion
Number of Hedge Fund Holders: 21
NatWest Group PLC (NYSE:NWG) is one of the best European bank stocks to buy now. On November 7, NatWest Group PLC (NYSE:NWG) shared post-Q3 2025 consensus financial estimates from 13 research analysts, in which the average forecast for net loans to customers was £418.0 billion by year-end 2025. The average estimate for customer deposits was £438.9 billion, and the net interest income was £ 12.7 billion. The 2025 average estimates for net interest margin were 2.33%, and 0.18% for the loan impairment rate. The research analysts expect net interest margin to rise to 2.46% in 2026 and 2.54% 2027. And the EPS is anticipated to come in at 70.5 pence in 2026 and 79.2 pence the year after.
It’s easy to place the optimism in the estimates, given NatWest’s strong performance in Q3 2025, which the company announced on October 24. During that quarter, the bank reported £1.6 billion in profits, with total income reaching £4.166 billion, up 3.9% from Q2 2025 and 10.4% from Q3 2024. Net interest margin rose to 2.37%. Also, net loans to customers increased by £4.4 billion, a growth that the lender attributed to expansion in retail mortgages (£1.7 billion) and commercial lending (£2.5 billion).
NatWest Group PLC (NYSE:NWG) is a UK-centered bank headquartered in Edinburgh, Scotland. It operates primarily through retail, commercial, and private banking services.
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