3 Bank Stocks You'll Want to Own in 2026

Core Insights - Bank stocks are positioned to benefit from favorable conditions as interest rates decline and investment banking rebounds, making them a solid choice for portfolio diversification [2] Group 1: JPMorgan Chase - JPMorgan Chase is the largest bank in the U.S. with total assets exceeding $3.8 trillion, nearly 50% larger than Bank of America and more than Citigroup and Wells Fargo combined [4] - The bank has a strong track record under CEO Jamie Dimon, successfully navigating economic challenges and emerging from the 2008 financial crisis [5] - JPMorgan's net interest income is projected to reach around $95 billion next year, reflecting a 3% increase from the current year, supported by robust capital market activity [8] - The bank effectively managed the rising interest rate environment in 2022 and 2023, leading to significant growth in net interest income [6][7] Group 2: Goldman Sachs - Goldman Sachs is expected to benefit from a rebound in capital markets, with a 40% increase in initial public offerings (IPOs) this year compared to 2024, raising total proceeds to $36.4 billion, a 26% year-over-year increase [11] - Mergers and acquisitions (M&A) activity has increased by 8.3%, with total deal value surging 146.5% year-over-year, indicating a strong recovery in deal-making [12] - The bank's CFO noted strong momentum in their backlog, the highest in three years, suggesting continued growth in M&A activity heading into 2026 [13] Group 3: Citigroup - Citigroup has lagged behind peers in key metrics like return on equity, attributed to its complex business structure and regulatory challenges [14] - Under CEO Jane Fraser, Citigroup is undergoing a transformation, including cutting bonuses and selling off less profitable units, such as a 25% stake in its Mexico retail bank for approximately $2.3 billion [15][17] - Citigroup trades at a price-to-tangible book value (P/TBV) of 1.14, making it more attractive to value-seeking investors compared to JPMorgan Chase and Goldman Sachs [18]