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U.K. (FTSE) Financials Sector Analysis

UpdatedOct 01, 2025
DataAggregated Company Financials
Companies202
  • 7D1.2%
  • 3M9.1%
  • 1Y36.5%
  • YTD23.7%

The Financials industry has gained 1.2% in the last week and London Stock Exchange Group up 4.1%. In the last 12 months, the industry was up 37%. Looking forward, earnings are forecast to grow by 11% annually.

Sector Valuation and Performance

Has the U.K. Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 01 Oct 2025UK£638.1bUK£264.2bUK£54.3b12.3x11.8x2.4x
Fri, 29 Aug 2025UK£622.0bUK£266.7bUK£53.3b12.2x11.7x2.3x
Sun, 27 Jul 2025UK£620.8bUK£273.1bUK£52.3b11.8x11.9x2.3x
Tue, 24 Jun 2025UK£585.0bUK£277.1bUK£52.0b11.8x11.2x2.1x
Thu, 22 May 2025UK£597.7bUK£278.2bUK£50.8b11.7x11.8x2.1x
Sat, 19 Apr 2025UK£546.4bUK£279.0bUK£52.0b10x10.5x2x
Mon, 17 Mar 2025UK£587.0bUK£296.8bUK£52.9b10.6x11.1x2x
Wed, 12 Feb 2025UK£591.9bUK£298.9bUK£54.1b10.8x10.9x2x
Fri, 10 Jan 2025UK£547.0bUK£299.5bUK£54.3b10.5x10.1x1.8x
Sun, 08 Dec 2024UK£540.4bUK£296.5bUK£53.3b11.3x10.1x1.8x
Tue, 05 Nov 2024UK£514.2bUK£294.5bUK£52.7b10.9x9.8x1.7x
Thu, 03 Oct 2024UK£467.6bUK£268.1bUK£46.5b11.3x10.1x1.7x
Sat, 31 Aug 2024UK£474.8bUK£265.6bUK£47.4b11.7x10x1.8x
Mon, 29 Jul 2024UK£458.3bUK£241.0bUK£47.2b11.9x9.7x1.9x
Wed, 26 Jun 2024UK£455.0bUK£241.6bUK£47.2b12x9.6x1.9x
Fri, 24 May 2024UK£458.3bUK£241.3bUK£47.1b13x9.7x1.9x
Sun, 21 Apr 2024UK£458.6bUK£267.5bUK£53.7b11.6x8.5x1.7x
Tue, 19 Mar 2024UK£439.0bUK£232.3bUK£52.8b12.4x8.3x1.9x
Thu, 15 Feb 2024UK£378.7bUK£185.0bUK£51.0b12.2x7.4x2x
Sat, 13 Jan 2024UK£394.8bUK£187.9bUK£51.3b12.8x7.7x2.1x
Mon, 11 Dec 2023UK£398.4bUK£189.0bUK£51.7b12.4x7.7x2.1x
Wed, 08 Nov 2023UK£373.9bUK£189.3bUK£51.8b11.6x7.2x2x
Fri, 06 Oct 2023UK£385.7bUK£183.1bUK£48.4b12x8x2.1x
Sun, 03 Sep 2023UK£380.2bUK£180.0bUK£47.7b12.9x8x2.1x
Tue, 01 Aug 2023UK£400.5bUK£170.1bUK£46.0b12.5x8.7x2.4x
Thu, 29 Jun 2023UK£397.7bUK£178.3bUK£51.6b12.5x7.7x2.2x
Sat, 27 May 2023UK£414.1bUK£183.1bUK£51.9b13.1x8x2.3x
Mon, 24 Apr 2023UK£405.5bUK£171.3bUK£42.7b12.9x9.5x2.4x
Wed, 22 Mar 2023UK£372.5bUK£166.5bUK£41.7b11.7x8.9x2.2x
Fri, 17 Feb 2023UK£458.3bUK£168.4bUK£41.0b11.6x11.2x2.7x
Sun, 15 Jan 2023UK£415.1bUK£143.4bUK£34.8b12.2x11.9x2.9x
Tue, 13 Dec 2022UK£371.3bUK£143.4bUK£34.8b11.4x10.7x2.6x
Thu, 10 Nov 2022UK£361.6bUK£147.9bUK£36.7b9.7x9.9x2.4x
Sat, 08 Oct 2022UK£360.1bUK£188.6bUK£40.9b9.2x8.8x1.9x
Price to Earnings Ratio

8.8x


Total Market Cap: UK£360.1bTotal Earnings: UK£40.9bTotal Revenue: UK£188.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 10.3x202320242025
Current Industry PE
  • Investors are optimistic on the British Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 11.8x which is higher than its 3-year average PE of 10.3x.
  • The industry is trading close to its 3-year average PS ratio of 2.2x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 9.9% per year over the last three years.
  • Revenues for these companies have grown 12% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.K. Financials sector?

GB Market1.54%
Financials1.23%
Consumer Finance5.21%
Capital Markets3.13%
Insurance2.33%
Banks0.37%
Mortgage Finance0%0
Diversified Financial-1.67%
Industry PE
  • Investors are most optimistic about the Consumer Finance industry, which is trading close to its 3-year average PE ratio of 21.9x.
    • Analysts are expecting annual earnings growth of 36.0%, which is lower than the prior year's growth of 55.3% per year.
  • Investors are most pessimistic about the Diversified Financial industry, which is trading below its 3-year average of 9.4x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 36% over the next 5 years.
  • However this is lower than its past earnings growth rate of 55% per year.
  • In contrast, the Banks industry is expected to see its earnings grow by 8.7% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
LSEG London Stock Exchange GroupUK£85.164.1%
+UK£1.7b		-17.4%PE44.9x
III 3i GroupUK£40.893.9%
+UK£1.5b		26.8%PE7.8x
HSBA HSBC HoldingsUK£10.450.8%
+UK£1.3b		57.2%PB1.3x
LLOY Lloyds Banking GroupUK£0.842.1%
+UK£1.0b		44.0%PB1.1x
PHLL Petershill PartnersUK£3.0731.8%
+UK£800.5m		47.6%PE4.7x

Latest News

NWG
UK£5.22
NatWest Group
7D
1.3%
1Y
53.2%
BARC
UK£3.80
Barclays
7D
-2.5%
1Y
72.8%
STAN
UK£14.36
Standard Chartered
7D
-1.3%
1Y
84.2%

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Sep 27
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PHLL
UK£3.07
Petershill Partners
7D
31.8%
1Y
47.6%
HSBA
UK£10.45
HSBC Holdings
7D
0.8%
1Y
57.2%
III
UK£40.89
3i Group
7D
3.9%
1Y
26.8%
ICG
UK£22.26
ICG
7D
-1.9%
1Y
3.5%

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Sep 21
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SDR
UK£3.76
Schroders
7D
-0.6%
1Y
8.4%
PHNX
UK£6.44
Phoenix Group Holdings
7D
-2.1%
1Y
15.0%

Digital Transformation Will Improve Customer Engagement And Efficiency

The upward revision in Phoenix Group Holdings’ price target reflects improved revenue growth forecasts, despite a rising future P/E, resulting in a new consensus fair value of £6.95. Valuation Changes Summary of Valuation Changes for Phoenix Group Holdings The Consensus Analyst Price Target has risen slightly from £6.79 to £6.95.
AV.
UK£6.86
Aviva
7D
2.8%
1Y
43.0%

UK Pension And Digital Trends Will Reshape Market Dynamics

Aviva's price target has been revised upwards to £6.72, reflecting accelerated earnings growth led by capital-light businesses, improved sector positioning, and higher shareholder return prospects despite some views of the shares as fairly valued at current levels. Analyst Commentary Expectations for accelerated earnings growth, with a significant portion (70%) coming from capital-light business streams, supporting stronger cash generation and improving quality of earnings.
LLOY
UK£0.84
Lloyds Banking Group
7D
2.1%
1Y
44.0%
LSEG
UK£85.16
London Stock Exchange Group
7D
4.1%
1Y
-17.4%
WISE
UK£10.35
Wise
7D
-4.6%
1Y
57.8%

Global Fee Competition And Rising Costs Will Erode Margins

Analysts remain constructive on Wise due to strong platform growth potential, stabilizing customer acquisition, and efficiency-driven pricing, supporting positive sentiment and Overweight/Buy ratings, with the consensus price target seeing a slight upward revision from £11.83 to £11.94. Analyst Commentary Slight reduction in price targets reflects tempered expectations for near-term upside, despite continued positive outlook.
BPT
UK£3.05
Bridgepoint Group
7D
-3.4%
1Y
-9.8%
BEZ
UK£9.07
Beazley
7D
7.7%
1Y
20.2%

Cyber And Climate Risks Will Shape Resilient Yet Uncertain Markets

The consensus price target for Beazley has been lowered, reflecting a notable decline in both future P/E and net profit margin expectations, resulting in a revised fair value of £10.04. What's in the News Completed share buyback of 25,700,000 shares (4.08% of outstanding) for $307.6 million.
EMG
UK£1.78
Man Group
7D
-0.3%
1Y
-18.4%