3 Foreign‑Bank Stocks to Watch as Global Banking Industry Restructures

As global banking remains in flux, the Zacks Investment Research spotlights three major foreign banks it believes are positioned to benefit from industry-wide restructuring and lower interest rates — namely HSBC Holdings plc (HSBC), ICICI Bank Limited (ICICI) and Barclays PLC (Barclays). Despite global economic headwinds and uneven recoveries across regions, Zacks argues these banks could see improved performance thanks to two key tailwinds: cost‑cutting business‑reshaping efforts and a broader environment of falling interest rates, which may boost demand for loans and improve net interest margins. Why these three stand out: HSBC has aggressively refocused its operations toward high‑growth markets in Asia and the Middle East, shedding less profitable businesses in Europe and North America. It’s also reallocating about USD 1.5 billion toward strategic initiatives — a move that could pay off if its “Asia pivot” gains traction. ICICI Bank is leaning on digitization — offering enhanced mobile banking and digital lending platforms — which has helped expand its non‑interest income (e.g., fees). Such diversification may make it more resilient if traditional loan spread income remains under pressure. Barclays continues to trim down costs through long-term structural efficiency plans. It has already achieved significant savings in recent years and is expected to continue streamlining operations, which could restore profitability even in a slow-growth global economy. That said, the article notes that global macroeconomic uncertainty and uneven economic recovery — particularly in some developing markets — remain a drag on overall banking earnings. The big picture: The broader group of foreign banks tracked by Zacks — the Zacks Foreign Banks Industry — has seen a roughly 60.8% cumulative stock‑price increase over the past two years, outperforming not only the general banking sector but also the S&P 500 during that time. As long as interest rates remain favorable and banks stay committed to restructuring, Zacks believes these three names are among the most promising bets in the foreign‑banking space heading into 2025. #ForeignBanks #HSBC #ICICIBank #Barclays #SlimScan #GrowthStocks #CANSLIM