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.
8. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Market Capitalization: $72.52 billion
Number of Hedge Fund Holders: 27
Deutsche Bank Aktiengesellschaft (NYSE:DB) is one of the best European bank stocks to buy now. On October 31, JPMorgan’s Kian Abouhossein kept the firm’s Buy rating on the Deutsche Bank Aktiengesellschaft (NYSE:DB) stock. The analyst also set a €35 price target on the bank’s shares.
The rating decision came after Deutsche Bank published its Q3 2025 results, on October 29. Quarterly revenue exceeded analysts’ expectations, reaching €8.04 billion against the anticipated €7.8 billion. EPS also delivered a sweet surprise – it came in at €0.86, 21.62% above the forecast. Nine-month revenue reached €24.4 billion, which the bank said supports its full-year goal of €32 billion. Pre-provision profit rose by nearly 50% year-on-year to €9 billion, and net commission and fee income increased 5% year-on-year.
Meanwhile, on November 10, Deutsche Bank appointed Ilya Korobov as Director of Debt Capital Markets (DCM) for Central and Eastern Europe, the Middle East, and Africa (CEEMEA). Korobov is a former Barclays executive who worked in the bank’s London office as an advisor. According to Abdeslam Alaoui, Head of CEEMEA Capital Markets at Deutsche Bank, this appointment is part of the lender’s broader expansion of its investment banking team in CEEMEA, especially in the debt capital markets segment. This follows a wave of sovereign, corporate, and capital debt deals across the region.
Deutsche Bank Aktiengesellschaft (NYSE:DB) is Germany’s largest bank and one of Europe’s leading universal banking institutions. It operates across retail banking, corporate banking, investment banking, and asset management, serving clients worldwide.
7. Lloyds Banking Group PLC (NYSE:LYG)
Market Capitalization: $74.11 billion
Number of Hedge Fund Holders: 19
Lloyds Banking Group PLC (NYSE:LYG) is one of the best European bank stocks to buy now. On November 7, Lloyds Banking Group PLC (NYSE:LYG) revealed plans to unveil the UK’s first large-scale, multi-feature AI-powered financial assistant. The product will target the lender’s 21 million mobile app customers in early 2026. This assistant, the bank said, will provide round-the-clock “personalized financial coaching.” In essence, it will work as a financial companion, which means it will answer customer questions and provide tailored guidance.
Two key features will be available straight away: a conversational tool for personalized spending insights and a savings and investment function. Customers will use them to make informed financial decisions within the secure environment of the app.
The bank said that the assistant is built on its proprietary Generative AI and Agentic frameworks. It will utilize curated bank data and agentic AI to deliver accurate, explainable, and regulated advice. Lloyds is currently piloting the AI assistant with 7,000 staff, and the public rollout is set for somewhere in 2026.
Lloyds Banking Group PLC (NYSE:LYG) is a British financial services provider headquartered in London. It operates primarily through retail, commercial, and insurance businesses, and caters to over 26 million customers through brands such as Lloyds Bank, Halifax, and Bank of Scotland.
6. ING Groep N.V. (NYSE:ING)
Market Capitalization: $77.17 billion
Number of Hedge Fund Holders: 14
ING Groep N.V. (NYSE:ING) is one of the best European bank stocks to buy now. On November 10, ING Groep N.V. (NYSE:ING) kicked off the stabilization period for its GBP benchmark bond offering. The bank will act as its own stabilizing manager for the securities issuance. The securities involved are GBP Benchmark short 7NC6 fixed-to-floating rate notes. Stabilization actions may include, over-allotting the securities, effecting market transactions to support the market price of the bonds above the level that might otherwise prevail, or all actions strictly in accordance with UK and EU market abuse and securities regulations.
Separately, the bank published its Q3 2025 financial report on October 30, in which revenue came in at $6.88 billion, above projections of $6.51 billion (a 5.68% beat). EPS was also outstanding, coming in at $0.70 against the expected $0.65 (a 7.69% beat). Much of the momentum came from strong results in cash loans and mortgages. However, corporate lending offset a substantial portion of the gains as it remained subdued due to what the bank attributed to economic uncertainty.
ING Groep N.V. (NYSE:ING) is a Dutch multinational bank headquartered in Amsterdam. The lender has a robust European base and operations in over 40 countries. Its core businesses include retail banking, wholesale banking, and financial services such as savings, payments, loans, mortgages, and corporate finance.
5. Barclays PLC (NYSE:BCS)
Market Capitalization: $78.33 billion
Number of Hedge Fund Holders: 28
Barclays PLC (NYSE:BCS) is one of the best European bank stocks to buy now. On November 7, Barclays PLC (NYSE:BCS) made public a 3.62% stake in Dalata Hotel Group PLC. The interest consists of direct holdings in ordinary shares and additional positions acquired via cash-settled derivatives. This stake gives Barclays influence over future corporate actions involving Dalata.
The move comes less than two weeks after the lender acquired Best Egg Inc. (on October 28), a US-based personal loan platform, for $800 million. The stated objective for the move was for Barclays to expand and diversify its US consumer banking operations. The transaction is still a work in progress and should close in Q2 2026, pending regulatory approvals and customary conditions.
If completed, Barclays will retain Best Egg’s leadership team and operational model. This includes the firm’s technology-driven, capital-light origination and servicing platform. Barclays will also keep a fraction of new originations on its own balance sheet, while Best Egg’s alternative asset manager partners fund the remainder via securitizations and forward flow arrangements.
Barclays PLC (NYSE:BCS) is a British multinational bank headquartered in London, operating through Barclays UK and Barclays International. Its businesses span retail banking, corporate banking, wealth management, and investment banking.
4. UBS Group AG (NYSE:UBS)
Market Capitalization: $123.71 billion
Number of Hedge Fund Holders: 36
UBS Group AG (NYSE:UBS) is one of the best European bank stocks to buy now. On November 7, Keefe Bruyette & Woods cut its rating on UBS Group AG (NYSE:UBS) to Underperform from Market Perform and lowered its price target to CHF 31 from CHF 32. The downgrade reflected concerns over mounting regulatory pressures in Switzerland and ongoing litigation risks, which the firm believes could weigh on the stock.
A day earlier, on November 6, UBS Group AG, alongside its subsidiary, UBS AG, raised the maximum purchase consideration for its ongoing cash tender offers for certain outstanding debt securities to $8.6 billion from a previously announced $4.0 billion. The move follows strong investor participation in the offers. The tender offers covered seven separate series of notes, including US dollar and euro-denominated senior notes issued by UBS Group AG (NYSE:UBS) and UBS AG. This also includes the securities that were initially issued by Credit Suisse before its acquisition by UBS.
The banking group detailed that a combined aggregate principal amount of approximately $7.67 billion in notes was accepted for purchase within the upsized $8.6 billion cap. This excludes notes delivered under guaranteed delivery procedures. The offers were prioritized by acceptance levels across series, and the company stated that the maximum purchase condition was satisfied for series with acceptance priority levels 1 through 6 after the upsizing.
The tender period expired on November 5, 2025, with a total of about $8.54 billion aggregate principal amount tendered across the seven series. This is before applying proration and acceptance priority rules.
UBS Group AG (NYSE:UBS) is Switzerland’s largest bank and a leading European financial services provider. It operates across wealth management, investment banking, asset management, and retail banking, serving clients globally.
3. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)
Market Capitalization: $125.77 billion
Number of Hedge Fund Holders: 10
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is one of the best European bank stocks to buy now. On November 3, Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) issued convertible preferred securities worth €1 billion. Otherwise known as contingent convertible or CoCo bonds, these securities qualify as Additional Tier 1 (AT1) capital under solvency regulations. They are contingently convertible into newly issued ordinary shares of BBVA, that is, if the bank’s Common Equity Tier 1 (CET1) ratio falls below a certain trigger. The coupon is set at 5.625% per annum from November 11, 2025, to November 11, 2032. Beyond that range, the rate will reset to a margin of 324.6 basis points over the 5-year Mid-Swap Rate.
Just days earlier (October 30), the lender had reported a strong financial performance in Q3 2025. Net interest income touched €6.64 billion (up 18% year-over-year), and fee and commission income rose 15% year-over-year to €2.06 billion. The bank’s net attributable profit for the quarter was €2.53 billion, down 3.7% from Q2 2025 and 8% lower year-over-year. For the first nine months of 2025, net profit totaled €7.98 billion, a 4.7% increase from the prior year.
Nevertheless, EPS for the quarter came in at €0.42, missing the consensus forecast by more than 20%. The €6.64 billion, although higher than the same quarter last year, fell short of the €10.33 billion forecast.
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is a Spanish multinational bank headquartered in Bilbao and Madrid. The lender operates as a universal bank, offering services that span retail, corporate, investment, and private banking.
2. Banco Santander, S.A. (NYSE:SAN)
Market Capitalization: $163.52 billion
Number of Hedge Fund Holders: 18
Banco Santander, S.A. (NYSE:SAN) is one of the best European bank stocks to buy now. On November 6, Banco Santander, S.A. (NYSE:SAN) issued $2.8 billion in senior non-preferred notes through a multi-tranche offering. The first tranche consists of $300 million floating-rate notes due 2030. The other two tranches are $1.25 billion apiece; one is a 4.551% fixed-rate note due 2030, paying semi-annually, and the other is a 5.127% fixed-rate note due 2035, also paying semi-annually.
Earlier on November 4, Banco Santander SA launched a new digital platform designed to address regulatory barriers. Navigator Global is the platform designed to connect trader partners and market intelligence across international markets. Launched in the UK, the platform is poised to go live in the US and into other markets. Navigator Global is set to replace a UK-only platform that operated between 2021 and 2025, supporting 2,500 businesses. The new platform is to come with enhanced capabilities, including a trade tool capable of creating unique action plans for international trade.
This move follows a strong financial performance in Q3 2025, which the bank announced on October 29. Santander’s quarterly profit touched a new record, coming in at €3.5 billion. Revenue reached €17.81 billion, surpassing the expected €17.75 billion. Though robust, the €0.2566 EPS delivered a negative surprise of 1.65%.
In terms of operations, Santander added 7 million new customers year-on-year, bringing its total to 178 million globally. The lender also improved its efficiency ratio to 41.3%, its best in over 15 years. Santander’s success was supported by its focus on digital transformation and tighter cost controls. Despite a tough interest rate backdrop, the bank continued to hold its competitive position across a range of markets compared with prior quarters.
Banco Santander, S.A. (NYSE:SAN) is Spain’s largest bank and one of Europe’s leading financial institutions. It operates across retail banking, corporate banking, investment banking, and consumer finance, serving more than 176 million customers worldwide.
1. HSBC Holdings PLC (NYSE:HSBC)
Market Capitalization: $252.31 billion
Number of Hedge Fund Holders: 17
HSBC Holdings PLC (NYSE:HSBC) is one of the best European bank stocks to buy now. On October 29, HSBC Holdings PLC (NYSE:HSBC) launched a new product that will support startups, scale-ups, and venture investors in Singapore and region-wide. The product, which the lender describes as a “dedicated global proposition”, will receive $1.5 billion in funding. This funding pool will provide financing solutions for high‑growth innovation companies to scale their businesses. Other key innovation hubs covered under this program include mainland China, Hong Kong, continental Europe, Israel, New Zealand, Australia, the UK, the US, and India.
To steer the program, HSBC Holdings PLC named Neil Falconer the Head of Innovation Banking, Singapore. Falconer will lead a dedicated coverage team and will be aided by a Credit Solutions team. Shaun Sakhrani will lead this team as Head of Credit Solutions, Singapore, and Asia Head of Platform Lending. The program will offer platform finance and venture debt for Innovation Banking clients.
On why the lender chose Singapore for the rollout, HSBC Holdings PLC stated that the country hosts “more than 4,000 startups” and is supported by a network of investors, accelerators, and incubators. The bank added that this Singapore launch is the third Asia‑Pacific expansion of Innovation Banking in 2025 – it adds to its existing presence in multiple markets and enables startups to access major capital markets and innovation hubs via HSBC’s network.
HSBC Holdings PLC (NYSE:HSBC) is the largest bank in Europe by assets. It is headquartered in London and operates across more than 60 countries. Its core businesses include commercial banking, global markets, wealth management, and retail banking.
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