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U.K. (FTSE) Financials Sector Analysis

UpdatedMar 26, 2026
DataAggregated Company Financials
Companies201
  • 7D-1.3%
  • 3M-3.7%
  • 1Y18.0%
  • YTD-4.7%

Over the last 7 days, the Financials industry has dropped 3.5%, driven by NatWest Group declining 6.4%. This takes the industry's 12 month performance to a gain of 16%. Looking forward, earnings are forecast to grow by 9.5% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 26 Mar 2026UK£665.5bUK£312.8bUK£61.5b11.5x10.8x2.1x
Sat, 21 Feb 2026UK£717.9bUK£270.9bUK£55.9b13x12.9x2.6x
Mon, 19 Jan 2026UK£717.8bUK£269.2bUK£54.5b13.4x13.2x2.7x
Wed, 17 Dec 2025UK£671.1bUK£269.0bUK£54.4b12.2x12.3x2.5x
Fri, 14 Nov 2025UK£668.2bUK£268.3bUK£53.7b12.6x12.4x2.5x
Sun, 12 Oct 2025UK£632.8bUK£264.6bUK£54.4b12.3x11.6x2.4x
Tue, 09 Sep 2025UK£617.6bUK£263.4bUK£54.1b11.9x11.4x2.3x
Thu, 07 Aug 2025UK£637.2bUK£276.8bUK£52.9b12.1x12x2.3x
Sat, 05 Jul 2025UK£592.4bUK£271.6bUK£51.7b11.7x11.5x2.2x
Mon, 02 Jun 2025UK£593.3bUK£277.5bUK£52.2b11.9x11.4x2.1x
Wed, 30 Apr 2025UK£574.6bUK£276.4bUK£49.5b10.4x11.6x2.1x
Fri, 28 Mar 2025UK£582.8bUK£280.7bUK£52.4b10.7x11.1x2.1x
Sun, 23 Feb 2025UK£598.9bUK£300.5bUK£54.5b10.5x11x2x
Tue, 21 Jan 2025UK£565.9bUK£299.5bUK£54.2b10.6x10.4x1.9x
Thu, 19 Dec 2024UK£541.6bUK£296.7bUK£53.4b11x10.2x1.8x
Sat, 16 Nov 2024UK£519.5bUK£297.4bUK£53.7b11.2x9.7x1.7x
Mon, 14 Oct 2024UK£470.5bUK£269.4bUK£46.9b11.6x10x1.7x
Wed, 11 Sep 2024UK£461.8bUK£266.0bUK£47.4b11.3x9.7x1.7x
Fri, 09 Aug 2024UK£454.7bUK£265.6bUK£48.1b11.2x9.4x1.7x
Sun, 07 Jul 2024UK£452.5bUK£240.7bUK£47.0b12x9.6x1.9x
Tue, 04 Jun 2024UK£459.9bUK£240.8bUK£47.1b13.3x9.8x1.9x
Thu, 02 May 2024UK£446.6bUK£242.8bUK£48.3b12.6x9.3x1.8x
Sat, 30 Mar 2024UK£462.4bUK£266.0bUK£53.1b12.6x8.7x1.7x
Mon, 26 Feb 2024UK£410.3bUK£244.1bUK£106.5b12.1x3.9x1.7x
Wed, 24 Jan 2024UK£384.9bUK£188.4bUK£51.5b12.7x7.5x2x
Fri, 22 Dec 2023UK£398.9bUK£188.2bUK£51.4b13.2x7.8x2.1x
Sun, 19 Nov 2023UK£385.2bUK£189.1bUK£52.0b12.2x7.4x2x
Tue, 17 Oct 2023UK£392.6bUK£183.0bUK£48.4b11.8x8.1x2.1x
Thu, 14 Sep 2023UK£386.4bUK£181.5bUK£47.9b13x8.1x2.1x
Sat, 12 Aug 2023UK£391.8bUK£179.0bUK£47.4b12.9x8.3x2.2x
Mon, 10 Jul 2023UK£393.7bUK£180.2bUK£51.0b12.2x7.7x2.2x
Wed, 07 Jun 2023UK£417.7bUK£182.8bUK£51.8b13.3x8.1x2.3x
Fri, 05 May 2023UK£403.9bUK£179.0bUK£49.6b12.9x8.1x2.3x
Sun, 02 Apr 2023UK£392.7bUK£171.7bUK£42.7b13x9.2x2.3x
Price to Earnings Ratio

9.2x


Total Market Cap: UK£392.7bTotal Earnings: UK£42.7bTotal Revenue: UK£171.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 9.9x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 9.9x.
  • The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 13% per year over the last three years.
  • Revenues for these companies have grown 22% 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 Market-1.97%
Financials-1.35%
Mortgage Finance0%0
Banks-1.15%
Insurance-1.38%
Capital Markets-1.74%
Diversified Financial-2.14%
Consumer Finance-2.76%
Industry PE
  • Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 13.1x.
    • Analysts are expecting annual earnings growth of 8.4%, which is higher than its past year's earnings growth of 5.4% per year.
  • Investors are most pessimistic about the Diversified Financial industry, which is trading below its 3-year average of 8.2x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 20% over the next 5 years.
  • However this is lower than its past earnings growth rate of 63% per year.
  • In contrast, the Insurance industry is expected to see its earnings grow by 8.4% 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
PRU PrudentialUK£10.932.1%
+UK£549.0m		30.4%PE9.2x
HSBA HSBC HoldingsUK£12.110.2%
+UK£377.3m		35.2%PB1.4x
IGG IG Group HoldingsUK£14.607.4%
+UK£325.2m		52.5%PE9.7x
WISE WiseUK£9.021.3%
+UK£116.9m		-6.5%PE23.7x
TBCG TBC Bank GroupUK£43.152.4%
+UK£55.1m		-3.0%PB1.4x

Latest News

CMCX
UK£3.46
CMC Markets
7D
3.6%
1Y
62.2%
HSBA
UK£12.11
HSBC Holdings
7D
0.2%
1Y
35.2%
TBCG
UK£43.15
TBC Bank Group
7D
2.4%
1Y
-3.0%

TBCG: Maintained Fair Value And 2025 Dividend Proposal Will Support Upside

Analysts have kept their fair value view on TBC Bank Group broadly unchanged, with a refined discount rate and a slightly lower future P/E assumption contributing to a revised price target of £55.35. What's in the News The Board of Directors is recommending a final dividend for the year 2025 of GEL 3.87 per TBC Bank Group PLC share, subject to shareholder approval (company announcement).
III
UK£27.92
3i Group
7D
-2.9%
1Y
-25.4%

III: Updated Portfolio Assumptions Will Support Durable Returns And Dividend Visibility

The analyst price target for 3i Group has been adjusted slightly lower, reflecting a fair value move from £42.01 to £41.30, as analysts factor in updated assumptions on revenue growth, profit margins and future P/E while balancing recent mixed price target changes in sector peers. Analyst Commentary Recent Street research on 3i Group reflects a mix of optimism on the equity story and caution on near term valuation, with price targets adjusted both higher and lower around the current fair value range.
ADM
UK£31.46
Admiral Group
7D
-4.6%
1Y
11.6%

ADM: Rich Pricing Will Face Test From Diverging UK Motor Assumptions

The analyst price target for Admiral Group has been adjusted slightly higher to reflect a new fair value of £25.43, up from £25.29, as analysts factor in revised revenue expectations, updated discount rate assumptions, and recent Street research highlighting updates to profit and earnings outlooks and UK Motor pricing. Analyst Commentary Recent Street research on Admiral Group reflects a mix of optimism on earnings potential and caution on valuation, pricing assumptions, and execution risks.
IGG
UK£14.60
IG Group Holdings
7D
7.4%
1Y
52.5%
PRU
UK£10.93
Prudential
7D
2.1%
1Y
30.4%

PRU: Future Buybacks And Rising Cash Returns Will Support Upside Confidence

Analysts have nudged up the price target on Prudential, with recent moves from £1,270 to £1,500 supported by updated assumptions around higher revenue growth, a lower future P/E and a recalibrated profit margin outlook. Analyst Commentary Recent research updates on Prudential cluster around higher price targets and refreshed assumptions on growth, profitability and valuation multiples.
NWG
UK£5.43
NatWest Group
7D
-6.4%
1Y
17.1%

NWG: Evelyn Deal And Capital Returns Will Drive Future Share Upside

Analysts have nudged their fair value estimate for NatWest Group higher to £7.24 per share from £7.11, citing recent price target increases in the range of £6.70 to £8.40 and updated earnings estimates following the Evelyn Partners acquisition. Analyst Commentary Recent research points to a mixed but constructive view on NatWest Group, with several firms updating ratings and price targets around the time of the Evelyn Partners acquisition and the share price move that followed.
AV.
UK£6.25
Aviva
7D
-3.7%
1Y
11.5%
CBG
UK£3.85
Close Brothers Group
7D
9.6%
1Y
26.1%
MNG
UK£2.81
M&G
7D
-7.0%
1Y
29.0%
LSEG
UK£84.56
London Stock Exchange Group
7D
-2.2%
1Y
-24.7%

LSEG: Activist Review And Buybacks Will Drive Future Share Price Upside

Analysts have trimmed their fair value estimate for London Stock Exchange Group slightly to £122.32 from £123.11, reflecting modestly lower assumptions for revenue growth, profit margins and future P/E multiples. What's in the News Elliott Investment Management is pressing London Stock Exchange Group to conduct a full review of its portfolio, which includes its data business, exchange operations and a 51% stake in Tradeweb Markets, and is urging up to £5b of share buybacks over the next 12 months (Bloomberg report).
BARC
UK£3.94
Barclays
7D
-1.2%
1Y
27.5%

BARC: Future Income Guidance And Buybacks Will Support Stronger Share Price

Analysts have raised their price target for Barclays to £5.90 from £5.00, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E. What's in the News Barclays and Sage agreed a new partnership aimed at helping small businesses save time on administration, improve visibility over their finances and keep up with evolving UK tax rules, including the expansion of Making Tax Digital for Income Tax (Client announcement).
WISE
UK£9.02
Wise
7D
1.3%
1Y
-6.5%

WISE: Execution On Margin Discipline Will Support Future Earnings Conversion

Wise’s updated analyst model trims fair value to £11.62 from £11.75 and factors in a lower forward P/E of about 31.7x. This is in line with recent cuts to the Street price target to £12.25 and mixed, but generally constructive, analyst commentary on growth and margins.
LLOY
UK£0.95
Lloyds Banking Group
7D
-1.6%
1Y
29.5%

LLOY: Buyback And Dividend Returns Will Still Not Justify Richer Multiple

Analysts have lifted their fair value estimate for Lloyds Banking Group from about £0.70 to around £0.76 per share. They point to updated assumptions for revenue growth, profit margins and a lower future P/E multiple as key drivers of the change.
EWG
UK£1.09
W.A.G payment solutions
7D
3.8%
1Y
81.7%

EWG: Multi Year Guidance And Stable Margins Will Support Higher Future P/E

Analysts have reduced their price target for W.A.G payment solutions to £1.28. This reflects small adjustments to the discount rate and assumed future P/E, while fair value and margin expectations remain broadly unchanged.