Sectors & IndustriesFinancial ServicesBanks - Diversified

Best Diversified Bank Stocks to Buy Now (2025)

Top diversified bank stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best diversified bank stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best diversified bank stocks to buy right now are:

Barclays (NYSE:BCS) is the #1 top diversified bank stock out of 16 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Barclays (NYSE:BCS) is: Value: C, Growth: B, Momentum: A, Sentiment: B, Safety: C, Financials: C, and AI: B.

Barclays (NYSE:BCS) has a Due Diligence Score of 49, which is 16 points higher than the diversified bank industry average of 33.

BCS passed 18 out of 38 due diligence checks and has strong fundamentals. Barclays has seen its stock return 59.98% over the past year, overperforming other diversified bank stocks by 45 percentage points.

Natwest Group (NYSE:NWG) is the #2 top diversified bank stock out of 16 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Natwest Group (NYSE:NWG) is: Value: C, Growth: C, Momentum: A, Sentiment: A, Safety: C, Financials: C, and AI: B.

Natwest Group (NYSE:NWG) has a Due Diligence Score of 41, which is 8 points higher than the diversified bank industry average of 33.

NWG passed 14 out of 38 due diligence checks and has strong fundamentals. Natwest Group has seen its stock return 77.29% over the past year, overperforming other diversified bank stocks by 62 percentage points.

Sumitomo Mitsui Financial Group (NYSE:SMFG) is the #3 top diversified bank stock out of 16 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Sumitomo Mitsui Financial Group (NYSE:SMFG) is: Value: C, Growth: C, Momentum: A, Sentiment: B, Safety: C, Financials: C, and AI: A.

Sumitomo Mitsui Financial Group (NYSE:SMFG) has a Due Diligence Score of 9, which is -24 points lower than the diversified bank industry average of 33.

SMFG passed 3 out of 38 due diligence checks and has weak fundamentals. Sumitomo Mitsui Financial Group has seen its stock return 19.89% over the past year, overperforming other diversified bank stocks by 5 percentage points.

Out of 9 diversified bank stocks that have issued dividends in the past year, the 3 diversified bank stocks with the highest dividend yields are:

Hsbc Holdings (NYSE:HSBC) has an annual dividend yield of 8.05%, which is 5 percentage points higher than the diversified bank industry average of 3.49%. Hsbc Holdings's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Hsbc Holdings's dividend has shown consistent growth over the last 10 years.

Hsbc Holdings's dividend payout ratio of 65.5% indicates that its high dividend yield is sustainable for the long-term.

Bank Of Nt Butterfield & Son (NYSE:NTB) has an annual dividend yield of 4.64%, which is 1 percentage points higher than the diversified bank industry average of 3.49%. Bank Of Nt Butterfield & Son's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Bank Of Nt Butterfield & Son's dividend has shown consistent growth over the last 10 years.

Bank Of Nt Butterfield & Son's dividend payout ratio of 36.7% indicates that its high dividend yield is sustainable for the long-term.

Natwest Group (NYSE:NWG) has an annual dividend yield of 4.33%, which is 1 percentage points higher than the diversified bank industry average of 3.49%. Natwest Group's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Natwest Group's dividend has shown consistent growth over the last 10 years.

Natwest Group's dividend payout ratio of 33.2% indicates that its high dividend yield is sustainable for the long-term.

Diversified bank stocks were up 2.84% in the last day, and up 1.92% over the last week. Barclays was the among the top gainers in the banks - diversified industry, gaining 5.03% yesterday.

Shares of banking companies are trading higher amid Treasury Secretary Scott Bessent's remarks about trade de-escalation with China.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued diversified bank stocks right now are:

East West Bancorp (NASDAQ:EWBC) is the most undervalued diversified bank stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

East West Bancorp has a valuation score of 29, which is -11 points higher than the diversified bank industry average of 40. It passed 2 out of 7 valuation due diligence checks.

East West Bancorp's stock has gained 6.36% in the past year. It has underperformed other stocks in the diversified bank industry by -9 percentage points.

Citigroup (NYSE:C) is the second most undervalued diversified bank stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Citigroup has a valuation score of 71, which is 31 points higher than the diversified bank industry average of 40. It passed 5 out of 7 valuation due diligence checks.

Citigroup's stock has gained 5.91% in the past year. It has underperformed other stocks in the diversified bank industry by -9 percentage points.

Natwest Group (NYSE:NWG) is the third most undervalued diversified bank stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Natwest Group has a valuation score of 43, which is 3 points higher than the diversified bank industry average of 40. It passed 3 out of 7 valuation due diligence checks.

Natwest Group's stock has gained 77.29% in the past year. It has overperformed other stocks in the diversified bank industry by 62 percentage points.

50% of diversified bank stocks rated by analysts are a buy right now. On average, analysts expect diversified bank stocks to rise by 40.2% over the next year.

0% of diversified bank stocks have a Zen Rating of A (Strong Buy), 6.25% of diversified bank stocks are rated B (Buy), 50% are rated C (Hold), 37.5% are rated D (Sell), and 6.25% are rated F (Strong Sell).