Bank Stocks Surge 22-29% Led by US, European Markets

Several bank stocks are showing strong performance and positive outlooks in 2025, driven by favorable market conditions and regulatory environments. Axos Financial is nearing its 52-week highs with a 48% gain over the past year, supported by strong technical momentum and solid fundamentals. In India, Kotak Mahindra Bank reported robust deposit and loan growth, with Morgan Stanley recommending it as a buy with a 20% upside potential. Goldman Sachs has seen a 26% gain year-to-date, leading to profit-taking amid an overbought market, though its long-term prospects remain bullish. The broader banking sector is benefiting from low default rates on corporate bonds, which are stable despite rising interest rates, supporting investor confidence. Furthermore, the Trump administration’s regulatory rollbacks and Treasury Secretary Scott Bessent’s approach to easing supervisory burdens have created a more favorable environment for U.S. banks, contributing to significant stock gains for major banks like Citigroup, JPMorgan, Bank of America, and Morgan Stanley.