The Fed’s recent 25 basis point rate cut has shifted the conversation from rate hikes to easing, but one thing hasn’t changed: deposit pricing power remains a key driver of bank profitability.
This measure reflects how effectively banks manage funding costs relative to interest rate moves, whether rates are climbing or falling.
Banks with strong pricing power can protect margins in any environment. When rates rise, they avoid passing on the full increase to depositors. When rates fall, they can lower funding costs quickly to cushion the impact on loan yields.
In 2025, investors are focused on institutions that combine pricing power with diversified revenue streams and disciplined balance sheet management. Here are 10 of the top bank stocks that stand out for their ability to navigate shifting rate cycles and deliver sustainable profitability.
| JPMorgan Chase & Co. (JPM) | 1.3% | 15.48 |
| Bank of America Corporation (BAC) | 5.4% | 12.85 |
| Wells Fargo & Company (WFC) | 5.8% | 13.40 |
| The PNC Financial Services Group (PNC) | 3.6% | 12.58 |
| U.S. Bancorp (USB) | 9.6% | 10.87 |
| Truist Financial Corporation (TFC) | 4.0% | 11.18 |
| M&T Bank Corporation (MTB) | 6.8% | 11.38 |
| Regions Financial (RF) | 3.8% | 11.31 |
| First Citizens BancShares, (FCNC.A) | 16.1% | 11.37 |
| Cullen/Frost Bankers (CFR) | 4.1% | 13.61 |
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M&T Bank (MTB)
M&T Bank is a prime example of regional-bank pricing power. With nearly a third of its deposit base in noninterest-bearing balances, it maintains one of the strongest mixes in the sector. These sticky commercial operating accounts, concentrated in the Northeast and Mid-Atlantic, provide durable funding that is less sensitive to rate shifts.
M&T’s management resists chasing high-cost deposits, even if it means sacrificing some loan growth. This discipline keeps total deposit costs structurally lower than many peers, which cushions profitability in both hiking and cutting cycles. For investors, M&T’s conservative approach makes it one of the most resilient regionals with the ability to defend margins and sustain profitability regardless of where the Fed goes next.
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U.S. Bancorp (USB)
U.S. Bancorp combines scale with discipline, giving it steady pricing power even as rates shift. Its Midwest and Western retail footprint delivers a dependable stream of consumer checking accounts, while treasury services and payments operations add large pools of operating balances. Together, these create a foundation of sticky, low-cost deposits that are less prone to rapid repricing.
Although USB’s deposit beta has been higher in recent quarters, the bank has historically maintained costs below peers by avoiding aggressive rate competition. Its Union Bank acquisition in 2023 expanded its footprint but did not compromise its strong funding base. For investors, USB offers reliable deposit management and the ability to defend margins with a mix of retail stickiness and commercial relationships.
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JPMorgan Chase & Co. (JPM)
JPMorgan sets the standard for deposit pricing power, thanks to its unmatched franchise and scale. With over $600 billion in noninterest-bearing deposits, the bank commands one of the most stable and rate-insensitive funding bases in the world. Its massive consumer checking presence and dominant corporate treasury operations ensure deposits remain sticky even as rates move up or down.
This strength allows JPM to control funding costs more effectively than peers. During past tightening cycles, it consistently lagged the industry in deposit repricing, preserving margins. In a cutting cycle, its balance sheet flexibility means it can strategically reduce costs without jeopardizing relationships. For investors, JPM represents the gold standard of pricing power with a structural edge that protects profitability through any interest rate environment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
