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U.K. (FTSE) Financials Sector Analysis

UpdatedJun 24, 2026
DataAggregated Company Financials
Companies197
  • 7D1.6%
  • 3M13.3%
  • 1Y29.3%
  • YTD8.1%

The Financials industry is up 1.6% in the last week, with Lloyds Banking Group up 1.8%. During this same period, the London Stock Exchange Group underperformed, falling 7.7%. This means that the industry has gained 29% over the past year. Earnings are forecast to grow by 10% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Jun 2026UK£748.2bUK£314.3bUK£60.7b11.2x12.3x2.4x
Sat, 23 May 2026UK£721.3bUK£312.3bUK£60.0b12.2x12x2.3x
Mon, 20 Apr 2026UK£735.5bUK£310.5bUK£61.4b12.4x12x2.4x
Wed, 18 Mar 2026UK£676.5bUK£312.0bUK£61.0b12.1x11.1x2.2x
Fri, 13 Feb 2026UK£700.8bUK£269.4bUK£55.2b13x12.7x2.6x
Sun, 11 Jan 2026UK£700.8bUK£269.1bUK£54.4b12.9x12.9x2.6x
Tue, 09 Dec 2025UK£653.5bUK£269.6bUK£54.5b12.1x12x2.4x
Thu, 06 Nov 2025UK£669.8bUK£269.3bUK£54.0b12.7x12.4x2.5x
Sat, 04 Oct 2025UK£647.7bUK£263.7bUK£54.1b12.3x12x2.5x
Mon, 01 Sep 2025UK£614.5bUK£266.7bUK£53.3b12.1x11.5x2.3x
Wed, 30 Jul 2025UK£623.3bUK£274.4bUK£52.8b11.9x11.8x2.3x
Fri, 27 Jun 2025UK£595.2bUK£275.9bUK£51.7b11.9x11.5x2.2x
Sun, 25 May 2025UK£593.6bUK£277.5bUK£50.6b11.7x11.7x2.1x
Tue, 22 Apr 2025UK£546.3bUK£279.0bUK£52.0b10x10.5x2x
Thu, 20 Mar 2025UK£601.3bUK£291.9bUK£51.5b10.9x11.7x2.1x
Sat, 15 Feb 2025UK£590.7bUK£298.4bUK£54.8b10.8x10.8x2x
Mon, 13 Jan 2025UK£538.5bUK£300.2bUK£54.4b10.1x9.9x1.8x
Wed, 11 Dec 2024UK£538.9bUK£296.3bUK£53.3b11.3x10.1x1.8x
Fri, 08 Nov 2024UK£519.2bUK£294.4bUK£52.7b10.8x9.8x1.8x
Sun, 06 Oct 2024UK£473.8bUK£269.0bUK£46.8b11.4x10.1x1.8x
Tue, 03 Sep 2024UK£472.5bUK£265.6bUK£47.3b11.6x10x1.8x
Thu, 01 Aug 2024UK£470.2bUK£248.8bUK£47.4b11.9x9.9x1.9x
Sat, 29 Jun 2024UK£450.6bUK£241.8bUK£47.3b11.4x9.5x1.9x
Mon, 27 May 2024UK£455.1bUK£232.8bUK£45.2b13.5x10.1x2x
Wed, 24 Apr 2024UK£468.6bUK£267.0bUK£53.5b12.2x8.8x1.8x
Fri, 22 Mar 2024UK£479.0bUK£248.4bUK£54.9b12.8x8.7x1.9x
Sun, 18 Feb 2024UK£389.0bUK£184.4bUK£50.8b12.2x7.7x2.1x
Tue, 16 Jan 2024UK£387.5bUK£188.1bUK£51.4b12.5x7.5x2.1x
Thu, 14 Dec 2023UK£393.4bUK£189.2bUK£51.7b12.2x7.6x2.1x
Sat, 11 Nov 2023UK£373.3bUK£190.4bUK£52.2b11.6x7.2x2x
Mon, 09 Oct 2023UK£391.2bUK£182.6bUK£48.3b12.1x8.1x2.1x
Wed, 06 Sep 2023UK£374.5bUK£180.0bUK£47.7b12.9x7.8x2.1x
Fri, 04 Aug 2023UK£391.9bUK£175.6bUK£47.2b12.4x8.3x2.2x
Sun, 02 Jul 2023UK£404.2bUK£177.9bUK£51.2b12.8x7.9x2.3x
Price to Earnings Ratio

7.9x


Total Market Cap: UK£404.2bTotal Earnings: UK£51.2bTotal Revenue: UK£177.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 10.2x202420252026
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 12.3x which is higher than its 3-year average PE of 10.2x.
  • The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.4x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 5.8% per year over the last three years.
  • Revenues for these companies have grown 21% 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-1.14%
Financials1.56%
Consumer Finance3.38%
Banks3.36%
Insurance0.47%
Mortgage Finance0%0
Diversified Financial-0.24%
Capital Markets-3.37%
Industry PE
  • Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 1.2x.
    • Analysts expect its future annual earnings growth (9.9%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Diversified Financial industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 8.3x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings growth rate of 1.8% per year.
  • In contrast, the Insurance industry is expected to see its earnings grow by 9.9% 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
LLOY Lloyds Banking GroupUK£1.081.8%
+UK£1.1b		41.7%PB1.3x
NWG NatWest GroupUK£6.471.4%
+UK£716.8m		28.2%PB1.2x
BARC BarclaysUK£5.070.7%
+UK£438.4m		52.8%PB0.9x
SDLF Standard LifeUK£8.273.8%
+UK£305.5m		27.6%PS0.3x
MNG M&GUK£3.332.2%
+UK£169.1m		30.2%PE26.3x

Latest News

MNG
UK£3.33
M&G
7D
2.2%
1Y
30.2%
STJ
UK£11.89
St. James's Place
7D
1.9%
1Y
6.0%
Narrative Update • Jun 23

STJ: Higher Future P E And Stable Fair Value Will Support Upside

St. James's Place enters this Narrative Update with a slightly adjusted analyst price target, reflecting a mix of lowered targets from Citi and JPMorgan, as well as a higher £2,000 target from Deutsche Bank, as analysts reassess the stock using a modestly higher discount rate and steady fair value assumptions. Analyst Commentary Analyst updates on St. James's Place have recently centred on a series of adjusted price targets, with some firms trimming their expectations and others lifting them.
HSBA
UK£14.29
HSBC Holdings
7D
-0.5%
1Y
60.6%
Narrative Update • Jun 22

HSBA: Future Returns Will Depend On Conviction Status And AI Execution Risks

Analysts have nudged their fair value estimate for HSBC Holdings to £14.34 per share, from £14.20, citing recent supportive research, including the stock’s addition to key conviction lists and a reiterated positive stance on its outlook. Analyst Commentary Recent research on HSBC Holdings has focused on how the stock’s current valuation lines up with analysts’ expectations for execution and growth, following its reinstatement and addition to a key European conviction list.
PRU
UK£9.97
Prudential
7D
-1.4%
1Y
8.6%
Narrative Update • Jun 22

PRU: Capital Returns And India Insurance Deal Prospects Will Support Re Rating

The latest Prudential price target update reflects a small reduction of £20 to £1,400, as analysts factor in slightly different assumptions for revenue growth, profit margins and future P/E while maintaining a broadly constructive view on the stock. Analyst Commentary Recent research around Prudential shows a mix of supportive and more cautious views, with several firms adjusting their price targets in both directions.
STAN
UK£20.33
Standard Chartered
7D
-0.2%
1Y
71.0%
Narrative Update • Jun 18

STAN: Fair Value Now Balances Rating Upgrades With Execution Delivery Risks

Standard Chartered's analyst price target has been revised slightly higher to £21.08 from £21.07, with analysts citing recent price target increases and rating upgrades as support for the updated valuation assumptions. Analyst Commentary Recent Street research on Standard Chartered reflects a mix of optimism on the stock's valuation potential and some lingering caution around execution and earnings delivery.
N91
UK£2.10
Ninety One Group
7D
-4.4%
1Y
17.6%
Narrative Update • Jun 18

N91: Future Dividend Timetable Supports Fair Balance Of Risks And Opportunities

Analysts have trimmed their price target on Ninety One Group to about £2.37 from roughly £2.43, reflecting updated assumptions for revenue growth, profit margins and the P/E multiple used in their valuation models. What’s in the News for Ninety One Group Ninety One Group has announced a recommended gross final dividend of 7.4 pence per ordinary share from income reserves for the financial year ended 31 March 2026.
BPT
UK£2.33
Bridgepoint Group
7D
-8.3%
1Y
-22.4%
LSEG
UK£82.80
London Stock Exchange Group
7D
-7.7%
1Y
-22.6%
Narrative Update • Jun 17

LSEG: Digital Expansion And Share Buybacks Will Support Future Share Price Upside

Analysts have nudged their price targets for London Stock Exchange Group higher, with one recent move adding £1.00 to the prior level. The change reflects updated views on fair value, discount rate, revenue growth, profit margin and future P/E assumptions.
ADM
UK£34.60
Admiral Group
7D
1.0%
1Y
4.3%
Narrative Update • Jun 17

ADM: Fair Outlook Suggests Multi Year Earnings Will Support Stable Share Price

Admiral Group's latest narrative update reflects a higher analyst price target of £35.50 from £28.50, with analysts pointing to slightly adjusted assumptions on revenue growth, profit margins and future P/E as support for the change. What's in the News for Admiral Group No recent news items for Admiral Group are available from the specified primary or secondary sources at this time.
BARC
UK£5.07
Barclays
7D
0.7%
1Y
52.8%
SDLF
UK£8.27
Standard Life
7D
3.8%
1Y
27.6%
Narrative Update • Jun 16

SDLF: Aegon UK Integration Risk Will Likely Cap Future Share Upside

Analysts have lifted their price target for Standard Life to £9.50 from £6.20, citing expectations that the planned Aegon UK acquisition, potential cost and revenue synergies, and a capital light growth profile could support the updated fair value assumptions and a slightly higher future P/E multiple. Analyst Commentary Recent JPMorgan commentary has been a key driver of renewed interest in Standard Life, with the broker lifting its price target to 950 GBp and upgrading the stock to Overweight from Underweight.
NWG
UK£6.47
NatWest Group
7D
1.4%
1Y
28.2%
III
UK£22.73
3i Group
7D
-1.3%
1Y
-42.4%
LLOY
UK£1.08
Lloyds Banking Group
7D
1.8%
1Y
41.7%
Narrative Update • Jun 11

LLOY: Motor Finance Uncertainty And Buybacks Will Still Limit Future Upside

Analysts have adjusted their price target for Lloyds Banking Group slightly, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E. Investors should note that the move in the target, while modest in £ terms, is supported by these refreshed inputs.
HSX
UK£18.10
Hiscox
7D
1.3%
1Y
42.7%
Narrative Update • Jun 09

HSX: Future Returns Will Balance Dividend Appeal With Execution And Rating Risks

Hiscox’s analyst fair value estimate has been nudged up from £16.90 to £17.20 as analysts factor in updated price targets in the range of £1,800 to £1,960 and modest tweaks to growth and profitability assumptions. Analyst Commentary Recent research has clustered around higher price targets for Hiscox, with figures in the £18.00 to £19.60 range feeding into the latest fair value estimate.
ICG
UK£17.11
ICG
7D
-5.3%
1Y
-12.8%
Narrative Update • Jun 06

ICG: Dividend Track Record And Premium P/E Outlook Will Support Future Returns

Analysts have adjusted their fair value estimate for ICG slightly higher to £24.11 from £24.05, reflecting updated assumptions around discount rates, profit margins and forward P/E multiples. Recent price target changes across the Street highlight a mix of caution on near term trading and support for the longer term earnings profile.