Regional banks take charge in 2025, outperforming the broader financial sector and S&P 500

businessinsider
2025.12.23 14:58

In 2025, regional banks outperformed the broader financial sector and S&P 500, with a +19.2% return. Improved credit conditions and stabilizing funding costs contributed to this success. Top performers include Customers Bancorp (+58.4% YTD) and Flagstar Bank (+41.1% YTD). Regional Bank ETFs like KRE and KBWR also saw gains.