Header cover image

U.K. (FTSE) Financials Sector Analysis

UpdatedFeb 22, 2024
DataAggregated Company Financials
Companies245
  • 7D1.2%
  • 3M1.5%
  • 1Y-4.7%
  • YTD-2.7%

Over the last 7 days, the Financials industry has risen 3.9%, driven by gains from Barclays of 15%. However, the industry is down 3.5% over the past year. As for the next few years, earnings are expected to grow by 7.1% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 22 Feb 2024UK£404.3bUK£207.8bUK£55.0b12.1x7.3x1.9x
Sat, 20 Jan 2024UK£384.6bUK£188.2bUK£51.5b12.8x7.5x2x
Mon, 18 Dec 2023UK£396.7bUK£188.2bUK£51.4b12.5x7.7x2.1x
Wed, 15 Nov 2023UK£375.4bUK£188.0bUK£51.6b12x7.3x2x
Fri, 13 Oct 2023UK£397.3bUK£183.1bUK£48.4b12.2x8.2x2.2x
Sun, 10 Sep 2023UK£376.4bUK£181.1bUK£47.9b12.9x7.9x2.1x
Tue, 08 Aug 2023UK£392.4bUK£175.1bUK£47.1b12.3x8.3x2.2x
Thu, 06 Jul 2023UK£400.5bUK£177.9bUK£51.2b12.2x7.8x2.3x
Sat, 03 Jun 2023UK£413.7bUK£182.6bUK£51.7b13.2x8x2.3x
Mon, 01 May 2023UK£410.9bUK£172.5bUK£43.6b13x9.4x2.4x
Wed, 29 Mar 2023UK£386.1bUK£172.2bUK£43.2b12.6x8.9x2.2x
Fri, 24 Feb 2023UK£453.8bUK£173.0bUK£44.7b10.9x10.1x2.6x
Sun, 22 Jan 2023UK£414.5bUK£142.6bUK£34.6b12.1x12x2.9x
Tue, 20 Dec 2022UK£372.5bUK£143.8bUK£34.9b11.5x10.7x2.6x
Thu, 17 Nov 2022UK£360.9bUK£146.2bUK£36.2b9.5x10x2.5x
Sat, 15 Oct 2022UK£575.0bUK£188.0bUK£40.8b9.2x14.1x3.1x
Mon, 12 Sep 2022UK£377.5bUK£149.9bUK£38.8b9.5x9.7x2.5x
Wed, 10 Aug 2022UK£419.7bUK£237.2bUK£41.3b9.9x10.2x1.8x
Fri, 08 Jul 2022UK£442.1bUK£281.3bUK£49.1b9.7x9x1.6x
Sun, 05 Jun 2022UK£457.1bUK£277.6bUK£48.4b10.2x9.4x1.6x
Tue, 03 May 2022UK£461.7bUK£275.4bUK£46.6b10.6x9.9x1.7x
Thu, 31 Mar 2022UK£477.1bUK£271.8bUK£46.3b10.4x10.3x1.8x
Sat, 26 Feb 2022UK£601.3bUK£355.0bUK£48.4b10.8x12.4x1.7x
Mon, 24 Jan 2022UK£522.3bUK£323.7bUK£46.2b11.2x11.3x1.6x
Wed, 22 Dec 2021UK£505.5bUK£326.0bUK£46.5b11.2x10.9x1.6x
Fri, 19 Nov 2021UK£535.2bUK£332.4bUK£48.3b12.8x11.1x1.6x
Sun, 17 Oct 2021UK£537.7bUK£326.2bUK£42.0b13.2x12.8x1.6x
Tue, 14 Sep 2021UK£508.0bUK£325.4bUK£41.5b14.3x12.2x1.6x
Thu, 12 Aug 2021UK£528.4bUK£325.7bUK£41.7b14.6x12.7x1.6x
Mon, 07 Jun 2021UK£515.6bUK£301.0bUK£29.9b17.4x17.2x1.7x
Sun, 28 Feb 2021UK£476.6bUK£283.2bUK£23.0b16.3x20.7x1.7x
Price to Earnings Ratio

20.7x


Total Market Cap: UK£476.6bTotal Earnings: UK£23.0bTotal Revenue: UK£283.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 11.3x202220232024
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 7.7x which is lower than its 3-year average PE of 11.3x.
  • 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 30% per year over the last three years.
  • Meanwhile revenues for these companies have declined 13% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

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

GB Market1.12%
Financials1.24%
Consumer Finance9.74%
Insurance2.65%
Diversified Financial1.02%
Capital Markets0.69%
Banks0.52%
Mortgage Finance0%
Mortgage REITs0%
Industry PE
  • Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 33.4x.
    • Analysts are expecting annual earnings growth of 15.8%, which is higher than its past year's earnings growth of 14.3% per year.
  • Investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 9.7x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings decline of 12% per year.
  • In contrast, the Banks industry is expected to see its earnings decline by 4.1% 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
BARC BarclaysUK£1.6314.6%
+UK£3.1b
-5.8%PB0.3x
NWG NatWest GroupUK£2.299.6%
+UK£1.8b
-19.3%PB0.5x
KSPI Kaspi.kzUS$100.0010.7%
+US$1.8b
26.9%PE10.9x
LLOY Lloyds Banking GroupUK£0.434.5%
+UK£1.2b
-15.5%PB0.6x
PRU PrudentialUK£8.224.0%
+UK£859.4m
-33.9%PE8.2x
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

HSBA

UK£5.90

HSBC Holdings

7D

-5.0%

1Y

-7.3%

PLUS

UK£17.90

Plus500

7D

-3.5%

1Y

-1.1%

BARC

UK£1.63

Barclays

7D

14.6%

1Y

-5.8%

CBG

UK£3.23

Close Brothers Group

7D

-18.7%

1Y

-66.5%

RCP

UK£18.06

RIT Capital Partners

7D

-1.6%

1Y

-6.0%

STAN

UK£6.01

Standard Chartered

7D

4.3%

1Y

-21.3%

LLOY

UK£0.43

Lloyds Banking Group

7D

4.5%

1Y

-15.5%

DLG

UK£1.63

Direct Line Insurance Group

7D

-2.3%

1Y

-7.7%

BPCR

US$0.90

BioPharma Credit

7D

-3.4%

1Y

-6.1%

HL.

UK£8.05

Hargreaves Lansdown

7D

-3.1%

1Y

-6.8%

III

UK£24.41

3i Group

7D

2.2%

1Y

51.2%

PRU

UK£8.22

Prudential

7D

4.0%

1Y

-33.9%

AV.

UK£4.46

Aviva

7D

4.7%

1Y

1.8%