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U.K. (FTSE) Financials Sector Analysis

UpdatedNov 27, 2022
DataAggregated Company Financials
Companies272
  • 7D1.1%
  • 3M-0.2%
  • 1Y-4.7%
  • YTD-11.1%

The Financials industry is up 1.1% in the last week, with HSBC Holdings up 2.7%. However, the industry is down 4.7% over the past year. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 27 Nov 2022UK£372.7bUK£144.6bUK£35.1b10.9x10.6x2.6x
Tue, 25 Oct 2022UK£357.3bUK£188.1bUK£40.8b9.2x8.8x1.9x
Thu, 22 Sep 2022UK£374.8bUK£151.3bUK£39.0b9.4x9.6x2.5x
Sat, 20 Aug 2022UK£388.8bUK£149.3bUK£38.2b9.9x10.2x2.6x
Mon, 18 Jul 2022UK£422.8bUK£281.8bUK£49.1b9.1x8.6x1.5x
Wed, 15 Jun 2022UK£436.5bUK£281.5bUK£49.4b10x8.8x1.6x
Fri, 13 May 2022UK£440.7bUK£276.8bUK£46.9b9.8x9.4x1.6x
Sun, 10 Apr 2022UK£478.1bUK£272.0bUK£46.8b10.4x10.2x1.8x
Tue, 08 Mar 2022UK£428.0bUK£308.1bUK£46.3b9.6x9.2x1.4x
Thu, 03 Feb 2022UK£534.7bUK£324.0bUK£46.2b11.8x11.6x1.7x
Sat, 01 Jan 2022UK£515.7bUK£323.9bUK£46.3b11.1x11.1x1.6x
Mon, 29 Nov 2021UK£501.6bUK£325.1bUK£46.2b12x10.9x1.5x
Wed, 27 Oct 2021UK£540.9bUK£328.3bUK£44.5b13.5x12.1x1.6x
Fri, 24 Sep 2021UK£507.5bUK£325.6bUK£41.5b14x12.2x1.6x
Sun, 22 Aug 2021UK£515.2bUK£325.7bUK£41.7b14.4x12.3x1.6x
Fri, 09 Jul 2021UK£502.8bUK£325.5bUK£41.7b13.8x12.1x1.5x
Thu, 01 Apr 2021UK£482.9bUK£300.6bUK£29.7b15.5x16.2x1.6x
Sun, 03 Jan 2021UK£428.6bUK£283.0bUK£22.7b15.4x18.9x1.5x
Wed, 07 Oct 2020UK£334.7bUK£273.0bUK£16.8b14.4x19.9x1.2x
Tue, 30 Jun 2020UK£362.1bUK£259.5bUK£15.9b13.9x22.7x1.4x
Fri, 03 Apr 2020UK£329.8bUK£305.8bUK£24.1b11.2x13.7x1.1x
Mon, 06 Jan 2020UK£503.7bUK£378.2bUK£32.8b13.4x15.4x1.3x
Price to Earnings Ratio

13.3x


Total Market Cap: UK£482.7bTotal Earnings: UK£36.4bTotal Revenue: UK£347.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 15x202020212022
Current Industry PE
  • Investors are pessimistic on the British Financials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 10.6x which is lower than its 3-year average PE of 15.0x.
  • The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have declined 25% per year.
  • This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

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

GB Market1.33%
Financials1.09%
Mortgage Finance2.29%
Banks2.15%
Consumer Finance1.09%
Capital Markets0.55%
Mortgage REITs0%
Diversified Financial-0.16%
Insurance-0.26%
Industry PE
  • Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 27.7x.
    • Analysts are expecting annual earnings growth of 37.6%, which is higher than its past year's earnings decline of 33.7% per year.
  • Investors are most pessimistic about the Mortgage Finance industry, which is trading below its 3-year average of 5.4x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 48% over the next 5 years.
  • This is better than its past earnings growth rate of 19% per year.
  • In contrast, the Mortgage Finance industry is expected to see its earnings decline by 2.5% 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
HSBA HSBC HoldingsUK£4.922.7%
+UK£2.6b
18.8%PB0.7x
LLOY Lloyds Banking GroupUK£0.461.8%
+UK£557.9m
0.7%PB0.7x
III 3i GroupUK£13.573.3%
+UK£418.9m
-0.4%PE3.7x
VMUK Virgin Money UKUK£1.7620.7%
+UK£414.9m
5.5%PB0.4x
ADM Admiral GroupUK£21.281.7%
+UK£275.2m
-28.2%PE16.5x
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Latest News

III

UK£13.57

3i Group

7D

3.3%

1Y

-0.4%

STAN

UK£5.90

Standard Chartered

7D

1.4%

1Y

43.3%

LLOY

UK£0.46

Lloyds Banking Group

7D

1.8%

1Y

0.7%

VMUK

UK£1.76

Virgin Money UK

7D

20.7%

1Y

5.5%

GROW

UK£4.12

Molten Ventures

7D

-8.5%

1Y

-53.0%

HSBA

UK£4.92

HSBC Holdings

7D

2.7%

1Y

18.8%

BEZ

UK£6.54

Beazley

7D

4.9%

1Y

64.3%

PRU

UK£9.43

Prudential

7D

-3.6%

1Y

-27.6%

NWG

UK£2.56

NatWest Group

7D

-0.8%

1Y

14.2%

MNG

UK£1.95

M&G

7D

-1.8%

1Y

3.6%

EMG

UK£2.16

Man Group

7D

-1.4%

1Y

-1.7%

ABDN

UK£2.14

abrdn

7D

5.8%

1Y

-10.0%

ASHM

UK£2.32

Ashmore Group

7D

-2.6%

1Y

-22.9%

STJ

UK£11.77

St. James's Place

7D

-0.9%

1Y

-23.4%

PHLL

UK£1.78

Petershill Partners

7D

-9.1%

1Y

-38.6%