Top 5 US Banks According to RBC Capital Markets: U.S. Bancorp Leads the Pack

Investing.com-- RBC Capital Markets has released its latest rankings of top US banking stocks, highlighting institutions that demonstrate strong financial performance, strategic positioning, and growth potential in the current economic environment.

U.S. Bancorp (NYSE:USB) claims the top spot on RBC’s list, positioned at what analysts describe as an "inflection point" where previous headwinds are becoming tailwinds. With a market capitalization of $77.3 billion and trading at 11.3x 2025 estimated earnings, USB offers a compelling 4.3% dividend yield.

The bank has consistently been among the best-performing commercial banks in the US over the past 10-20 years. New CEO Gunjan Kedia, who took the helm in April 2025, has maintained the company’s financial targets, including delivering over 200 basis points of operating leverage. USB’s balanced revenue mix (58% net interest revenue, 42% fee revenue) has been key to its best-in-class ROE.

U.S. Bancorp reported second-quarter 2025 earnings per share of $1.11, a 13% year-over-year increase, and also announced a reduction in its prime lending rate to 7.25%. Additionally, Truist Securities raised its price target on the company, citing growth potential.

Wells Fargo & Company (NYSE:WFC) ranks second, with a market cap of $265.6 billion and trading at 14.0x 2025 estimated earnings. A significant catalyst for WFC is the Federal Reserve’s removal of the asset growth restriction from its 2018 enforcement action, allowing the bank to implement growth plans after years of constraint.

Under CEO Charlie Scharf’s leadership, Wells Fargo has improved its efficiency ratio from 79% in Q4 2019 to 65% in Q2 2025. The bank maintains strong capital levels with a CET1 ratio of 11.1%.

In recent developments, Wells Fargo & Company announced it would decrease its prime rate to 7.25 percent. The company also received a reiterated Overweight rating from Piper Sandler, which cited long-term growth opportunities.

American Express (NYSE:AXP) secures the third position with a market capitalization of $233.8 billion. Trading at 22.0x 2025 estimated earnings, AXP offers a 1.0% dividend yield. RBC highlights the company’s "top-of-wallet" status with premium consumers driving durable revenue growth despite industry moderation in billings.

The company’s high-quality portfolio has shown remarkable stability in losses and delinquencies, consistently outperforming peers even with increased consumer strains.

American Express posted second-quarter 2025 earnings per share of $4.08 and announced a multi-year agreement to become the Official Payments Partner of Hard Rock Stadium.

The company also received a price target increase from Wells Fargo, though Freedom Capital Markets issued a downgrade to Sell.

Huntington Bancshares Incorporated (NASDAQ:HBAN) takes fourth place with a $25.7 billion market cap and an attractive 3.6% dividend yield. Trading at 12.1x 2025 estimated earnings, Huntington has transformed into a consistently high performer with a balanced risk/reward profile.

Management targets 6-9% PPNR growth over the medium term, supported by strategic investments in specialty commercial verticals and market expansion into the Carolinas and Texas.

Huntington Bancshares reported second-quarter 2025 core earnings per share of $0.38 and lowered its prime rate to 7.25 percent. Analyst ratings were mixed, with BofA Securities raising its price target while TD Cowen issued a reduction.

Wintrust Financial Corporation (NASDAQ:WTFC) rounds out the top five with a $9.0 billion market cap and trading at 12.1x 2025 estimated earnings. The bank offers a 1.5% dividend yield and has established a dominant market share in the Chicago area.

Wintrust has maintained consistent mid-to-high single-digit loan growth in recent years, outpacing many peers while maintaining strong asset quality and defending its margins effectively.

Wintrust Financial Corporation announced strong second-quarter 2025 results, with earnings per share of $2.78 and revenue of $670.78 million, both surpassing forecasts. Following the results, both Citi and Keefe, Bruyette & Woods raised their price targets on the company.

All five institutions face similar risk factors, primarily centered around potential economic downturns that could deteriorate credit quality and increase loan loss provisions.

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