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 C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

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

Barclays (NYSE:BCS) has a Due Diligence Score of 48, which is 16 points higher than the diversified bank industry average of 32.

BCS passed 18 out of 38 due diligence checks and has strong fundamentals. Barclays has seen its stock return 58.76% over the past year, overperforming other diversified bank stocks by 27 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: B, Safety: C, Financials: C, and AI: A.

Natwest Group (NYSE:NWG) has a Due Diligence Score of 45, which is 13 points higher than the diversified bank industry average of 32.

NWG passed 16 out of 38 due diligence checks and has strong fundamentals. Natwest Group has seen its stock return 55.93% over the past year, overperforming other diversified bank stocks by 24 percentage points.

Bank Of Nt Butterfield & Son (NYSE:NTB) 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 Bank Of Nt Butterfield & Son (NYSE:NTB) is: Value: C, Growth: D, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: A.

Bank Of Nt Butterfield & Son (NYSE:NTB) has a Due Diligence Score of 21, which is -11 points lower than the diversified bank industry average of 32.

NTB passed 8 out of 38 due diligence checks and has weak fundamentals. Bank Of Nt Butterfield & Son has seen its stock return 25.66% over the past year, underperforming other diversified bank stocks by -6 percentage points.

Bank Of Nt Butterfield & Son has an average 1 year price target of $51.33, an upside of 11.04% from Bank Of Nt Butterfield & Son's current stock price of $46.23.

Bank Of Nt Butterfield & Son stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Bank Of Nt Butterfield & Son, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 7 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 5.35%, which is 3 percentage points higher than the diversified bank industry average of 2.48%. Hsbc Holdings's dividend payout is not stable, having dropped more than 10% ten times in the last 10 years. Hsbc Holdings's dividend has not 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.

Natwest Group (NYSE:NWG) has an annual dividend yield of 4.1%, which is 2 percentage points higher than the diversified bank industry average of 2.48%. 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 34.8% indicates that its high dividend yield is sustainable for the long-term.

Barclays (NYSE:BCS) has an annual dividend yield of 2.28%, which is the same as the diversified bank industry average of 2.48%. Barclays's dividend payout is not stable, having dropped more than 10% seven times in the last 10 years. Barclays's dividend has shown consistent growth over the last 10 years.

Barclays's dividend payout ratio of 20.6% indicates that its dividend yield is sustainable for the long-term.

Diversified bank stocks were down -0.74% in the last day, and down -0.28% over the last week.

We couldn't find a catalyst for why diversified bank stocks are down.

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:

Bank Of Nt Butterfield & Son (NYSE:NTB) 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.

Bank Of Nt Butterfield & Son has a valuation score of 29, which is -12 points higher than the diversified bank industry average of 41. It passed 2 out of 7 valuation due diligence checks.

Bank Of Nt Butterfield & Son's stock has gained 25.66% in the past year. It has underperformed other stocks in the diversified bank industry by -6 percentage points.

Hsbc Holdings (NYSE:HSBC) 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.

Hsbc Holdings has a valuation score of 43, which is 2 points higher than the diversified bank industry average of 41. It passed 3 out of 7 valuation due diligence checks.

Hsbc Holdings's stock has gained 42.32% in the past year. It has overperformed other stocks in the diversified bank industry by 10 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 2 points higher than the diversified bank industry average of 41. It passed 3 out of 7 valuation due diligence checks.

Natwest Group's stock has gained 55.93% in the past year. It has overperformed other stocks in the diversified bank industry by 24 percentage points.

44.44% of diversified bank stocks rated by analysts are a strong buy right now. On average, analysts expect diversified bank stocks to rise by 15.2% over the next year.

0% of diversified bank stocks have a Zen Rating of A (Strong Buy), 0% of diversified bank stocks are rated B (Buy), 43.75% are rated C (Hold), 56.25% are rated D (Sell), and 0% are rated F (Strong Sell).