{"id":8051,"date":"2025-03-08T00:23:59","date_gmt":"2025-03-07T19:23:59","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=8051"},"modified":"2025-03-08T00:24:02","modified_gmt":"2025-03-07T19:24:02","slug":"top-3-banking-stocks-according-to-analysts","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/top-3-banking-stocks-according-to-analysts\/","title":{"rendered":"Top 3 banking stocks according to analysts\u00a0"},"content":{"rendered":"\n<p>Investing in the banks provides a reliable option for those seeking stable returns and long-term growth. Among Pakistan\u2019s banking sector, three consistently deliver high-quality results based on the return on equity (ROE), dividend yields, and strong earnings. <\/p>\n\n\n\n<p>We decided to dig up analyst reports and determine the top 3 banking stocks according to analysts. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. Habib Metro Bank (HMB)&nbsp;<\/strong><\/h2>\n\n\n\n<p><strong>Habib Metro Bank<\/strong> (<strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hmb\/\" title=\"HMB\">HMB<\/a><\/strong>) secures third rank due to its steady growth and stable dividend payments. It suggests a compelling investment opportunity for stability and consistency seeking investors.\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>EPS: <\/strong>EPS is expected to grow consistently though at a slower rate than its competitors.\u00a0<\/li>\n\n\n\n<li><strong>Earnings Growth: <\/strong>Earnings<strong> <\/strong>are projected to recover in 2025 and 2026, showing its growth potential.&nbsp;<\/li>\n\n\n\n<li><strong>Dividend Yield: <\/strong>A stable and attractive dividend yield of 11.5% which is similar to UBL.&nbsp;<\/li>\n\n\n\n<li>&nbsp;<strong>ROE: <\/strong>Though ROE is predicted to decline, but the decrease is not huge and is recoverable.&nbsp;<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><thead><tr><th>Metric<\/th><th><strong>2024<\/strong><\/th><th><strong>2025<\/strong><\/th><th><strong>2026<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>EPS&nbsp;<\/strong><\/td><td>21.8<\/td><td>22.1<\/td><td>23.1<\/td><\/tr><tr><td><strong>DPS&nbsp;<\/strong><\/td><td>10<\/td><td>10<\/td><td>10<\/td><\/tr><tr><td><strong>Earnings Growth&nbsp;<\/strong><\/td><td>-6.30%<\/td><td>1.40%<\/td><td>4.50%<\/td><\/tr><tr><td><strong>DY&nbsp;<\/strong><\/td><td>11.50%<\/td><td>11.50%<\/td><td>11.50%<\/td><\/tr><tr><td><strong>ROE&nbsp;<\/strong><\/td><td>22.20%<\/td><td>19.20%<\/td><td>18.00%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: JS Global&nbsp;<\/strong><\/p>\n\n\n\n<p>\u00a0With stable EPS in 2025 and 2026, it suggests a rewarding investment opportunity.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. United Bank Limited (UBL)<\/strong><\/h2>\n\n\n\n<p>UBL takes second spot based on its strong earnings growth trajectory. Its consistent dividend payments, impressive earnings track record, and improving ROE make it a great stock. Those seeking stability and growth can gain from its highest DPS in the sector.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>EPS: <\/strong>It is projected to grow its&nbsp; EPS to 60 in 2026, which is the highest among other banks.&nbsp;<\/li>\n\n\n\n<li><strong>Earnings Growth: <\/strong>Earnings are expected to jump to 21% in 2025, though it will maintain its 2024 earnings level, declining to 4% again in 2026.&nbsp;<\/li>\n\n\n\n<li><strong>Dividend Yield: <\/strong>A consistent dividend yield of 11.5%, which is slightly less than MEBL, is quite impressive with a DPS of Rs. 44.&nbsp;<\/li>\n\n\n\n<li><strong>ROE: <\/strong>It is expected to grow by 6% in 2025 with just a slight decline in 2026.&nbsp;<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><thead><tr><th><\/th><th><strong>2024<\/strong><\/th><th><strong>2025<\/strong><\/th><th><strong>2026<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>EPS&nbsp;<\/strong><\/td><td>47.2<\/td><td>57.3<\/td><td>60<\/td><\/tr><tr><td><strong>DPS&nbsp;<\/strong><\/td><td>44<\/td><td>44<\/td><td>44<\/td><\/tr><tr><td><strong>Earnings Growth&nbsp;<\/strong><\/td><td>4.80%<\/td><td>21.40%<\/td><td>4.70%<\/td><\/tr><tr><td><strong>DY&nbsp;<\/strong><\/td><td>11.50%<\/td><td>11.50%<\/td><td>11.50%<\/td><\/tr><tr><td><strong>ROE&nbsp;<\/strong><\/td><td>22.00%<\/td><td>28.30%<\/td><td>27.60%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>United Bank Limited <a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" target=\"_blank\" rel=\"noopener\" title=\"UBL\">(UBL<\/a>)<\/strong> is the second most attractive stock in our list. With a dividend yield of 11.50% and almost stable ROE in 2025 and 2026, it suggests a worthy investment option. The 27.6%<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. Meezan Bank (MEBL)&nbsp;<\/strong><\/h2>\n\n\n\n<p>Meezan Bank is one of the largest Islamic banks of Pakistan, which dominates the banking sector by delivering strong financial results. Being a leader in Islamic banking and a strong dividend payer makes it the best among other banks.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>EPS: <\/strong>&nbsp;With an expected EPS of 49.2 and 50 in 2025 and 2026 respectively, it highlights its strong earning power.&nbsp;<\/li>\n\n\n\n<li><strong>Earnings Growth: <\/strong>Though it demonstrates a slight decline in earnings in 2025, earnings are projected to recover in 2026.&nbsp;<\/li>\n\n\n\n<li><strong>Dividend Yield: <\/strong>A solid and consistent dividend yield of 11.6%, which is close to the interest rate, is quite attractive for investors.&nbsp;<\/li>\n\n\n\n<li><strong>ROE:<\/strong> Estimates show a decline in ROE, still 30.10% in 2026 is very strong and highest among all other banks. With the highest expected ROE in 2025 and 2026, it is more profitable than its competitors.&nbsp;<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><thead><tr><th><\/th><th><strong>2024<\/strong><\/th><th><strong>2025<\/strong><\/th><th><strong>2026<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>EPS&nbsp;<\/strong><\/td><td>52.6<\/td><td>49.2<\/td><td>50<\/td><\/tr><tr><td><strong>DPS&nbsp;<\/strong><\/td><td>28<\/td><td>28<\/td><td>28<\/td><\/tr><tr><td><strong>Earnings Growth&nbsp;<\/strong><\/td><td>10.40%<\/td><td>-6.30%<\/td><td>1.50%<\/td><\/tr><tr><td><strong>DY&nbsp;<\/strong><\/td><td>11.60%<\/td><td>11.60%<\/td><td>11.60%<\/td><\/tr><tr><td><strong>ROE&nbsp;<\/strong><\/td><td>43.80%<\/td><td>34.10%<\/td><td>30.10%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Meezan Bank (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/mebl\/\" target=\"_blank\" rel=\"noopener\" title=\"MEBL\">MEBL<\/a>) <\/strong>is top on the list due to the highest dividend yield and return on equity in 2025 &amp; 2026. Though the ROE shows a decline, but still 30% is the highest among other banks. Dividend yield of 11.6%, which is close to the interest rate, is quite attractive for investors. Dividend investment is a better option as it offers a source of regular income as well as the potential for an increase in worth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>It can be generally observed that both Meezan Bank and UBL offer consistent returns while the rest of the banking sector takes the back seat. Every banking stock has a unique investment angle but when it comes to safe returns, Meezan Bank is the number one investment according to analysts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investing in the banks provides a reliable option for those seeking stable returns and long-term growth.<\/p>\n","protected":false},"author":9252,"featured_media":8464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[328,28,181],"class_list":["post-8051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-psx-blog","tag-hmb","tag-mebl","tag-ubl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/03\/Top-3-Stocks-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/03\/Top-3-Stocks-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/03\/Top-3-Stocks-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/03\/Top-3-Stocks.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/8051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=8051"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/8051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/8464"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=8051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=8051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=8051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}