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:

Sumitomo Mitsui Financial Group (NYSE:SMFG) is the #1 top diversified bank stock out of 17 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: B, Sentiment: B, Safety: C, Financials: C, and AI: A.

Sumitomo Mitsui Financial Group (NYSE:SMFG) has a Due Diligence Score of 37, which is 5 points higher than the diversified bank industry average of 32.

SMFG passed 15 out of 38 due diligence checks and has average fundamentals. Sumitomo Mitsui Financial Group has seen its stock return 27.83% over the past year, underperforming other diversified bank stocks by -8 percentage points.

Mitsubishi Ufj Financial Group (NYSE:MUFG) is the #2 top diversified bank stock out of 17 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 Mitsubishi Ufj Financial Group (NYSE:MUFG) is: Value: C, Growth: C, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: B.

Mitsubishi Ufj Financial Group (NYSE:MUFG) has a Due Diligence Score of 38, which is 6 points higher than the diversified bank industry average of 32.

MUFG passed 16 out of 38 due diligence checks and has average fundamentals. Mitsubishi Ufj Financial Group has seen its stock return 31.55% over the past year, underperforming other diversified bank stocks by -4 percentage points.

Natwest Group (NYSE:NWG) is the #3 top diversified bank stock out of 17 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: C, Safety: C, Financials: C, and AI: A.

Natwest Group (NYSE:NWG) has a Due Diligence Score of 38, which is 6 points higher than the diversified bank industry average of 32.

NWG passed 13 out of 38 due diligence checks and has average fundamentals. Natwest Group has seen its stock return 58.05% over the past year, overperforming other diversified bank stocks by 23 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 4.4%, which is 2 percentage points higher than the diversified bank industry average of 2.1%. 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 3.91%, which is 2 percentage points higher than the diversified bank industry average of 2.1%. Natwest Group's dividend payout is not stable, having dropped more than 10% six 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 36.7% 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 1.83%, which is the same as the diversified bank industry average of 2.1%. 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 33.7% indicates that its dividend yield is sustainable for the long-term.

Diversified bank stocks were down -0.09% in the last day, and up 2.41% 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 B. 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 -15 points higher than the diversified bank industry average of 44. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates NTB a Valuation Rating of "B".

Bank Of Nt Butterfield & Son's stock has gained 36.71% in the past year. It has overperformed other stocks in the diversified bank industry by 1 percentage points.

Natwest Group (NYSE:NWG) 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.

Natwest Group has a valuation score of 43, which is -1 points higher than the diversified bank industry average of 44. It passed 3 out of 7 valuation due diligence checks.

Natwest Group's stock has gained 58.05% in the past year. It has overperformed other stocks in the diversified bank industry by 23 percentage points.

Hsbc Holdings (NYSE:HSBC) 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.

Hsbc Holdings has a valuation score of 43, which is -1 points higher than the diversified bank industry average of 44. It passed 3 out of 7 valuation due diligence checks.

Hsbc Holdings's stock has gained 55% in the past year. It has overperformed other stocks in the diversified bank industry by 20 percentage points.

45.45% of diversified bank stocks rated by analysts are a buy right now. On average, analysts expect diversified bank stocks to rise by 10.04% 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), 100% are rated C (Hold), 0% are rated D (Sell), and 0% are rated F (Strong Sell).