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U.K. (FTSE) Financials Sector Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies204
  • 7D-1.1%
  • 3M10.9%
  • 1Y38.9%
  • YTD0.07%

Over the last 7 days, the Financials industry has dropped 1.1%, driven by pullbacks in NatWest Group and Barclays of 3.8% and 2.8%, respectively. Over the past 12 months, the industry was up 39%. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 12 Jan 2026UK£700.8bUK£269.1bUK£54.4b12.9x12.9x2.6x
Wed, 10 Dec 2025UK£654.3bUK£269.6bUK£54.5b12.1x12x2.4x
Fri, 07 Nov 2025UK£669.4bUK£268.9bUK£53.9b12.6x12.4x2.5x
Sun, 05 Oct 2025UK£647.6bUK£263.7bUK£54.1b12.3x12x2.5x
Tue, 02 Sep 2025UK£617.0bUK£266.5bUK£53.3b12.1x11.6x2.3x
Thu, 31 Jul 2025UK£617.1bUK£275.0bUK£53.0b11.8x11.6x2.2x
Sat, 28 Jun 2025UK£601.0bUK£276.0bUK£51.7b12.2x11.6x2.2x
Mon, 26 May 2025UK£593.6bUK£277.5bUK£50.6b11.7x11.7x2.1x
Wed, 23 Apr 2025UK£551.3bUK£278.8bUK£51.9b10.1x10.6x2x
Fri, 21 Mar 2025UK£596.8bUK£292.9bUK£52.6b11x11.3x2x
Sun, 16 Feb 2025UK£590.7bUK£298.5bUK£54.9b10.8x10.8x2x
Tue, 14 Jan 2025UK£538.1bUK£300.5bUK£54.6b10.1x9.9x1.8x
Thu, 12 Dec 2024UK£541.9bUK£296.2bUK£53.2b11.4x10.2x1.8x
Sat, 09 Nov 2024UK£511.0bUK£294.5bUK£52.7b10.7x9.7x1.7x
Mon, 07 Oct 2024UK£473.8bUK£269.0bUK£46.8b11.4x10.1x1.8x
Wed, 04 Sep 2024UK£467.8bUK£265.8bUK£47.4b11.7x9.9x1.8x
Fri, 02 Aug 2024UK£454.3bUK£247.2bUK£47.4b11.7x9.6x1.8x
Sun, 30 Jun 2024UK£450.4bUK£241.8bUK£47.3b11.4x9.5x1.9x
Tue, 28 May 2024UK£455.1bUK£232.7bUK£45.2b13.5x10.1x2x
Thu, 25 Apr 2024UK£465.7bUK£266.7bUK£53.0b12x8.8x1.7x
Sat, 23 Mar 2024UK£481.9bUK£248.4bUK£55.0b13x8.8x1.9x
Mon, 19 Feb 2024UK£389.0bUK£184.4bUK£50.8b12.2x7.7x2.1x
Wed, 17 Jan 2024UK£385.6bUK£188.6bUK£51.6b12.3x7.5x2x
Fri, 15 Dec 2023UK£402.2bUK£187.8bUK£51.3b12.4x7.8x2.1x
Sun, 12 Nov 2023UK£373.2bUK£190.2bUK£52.1b11.6x7.2x2x
Tue, 10 Oct 2023UK£383.4bUK£182.7bUK£48.3b12.1x7.9x2.1x
Thu, 07 Sep 2023UK£376.3bUK£180.4bUK£47.9b12.9x7.9x2.1x
Sat, 05 Aug 2023UK£392.3bUK£175.2bUK£47.1b12.3x8.3x2.2x
Mon, 03 Jul 2023UK£404.2bUK£177.9bUK£51.2b12.8x7.9x2.3x
Wed, 31 May 2023UK£411.4bUK£183.0bUK£51.9b13.1x7.9x2.2x
Fri, 28 Apr 2023UK£408.1bUK£171.8bUK£42.8b12.7x9.5x2.4x
Sun, 26 Mar 2023UK£383.7bUK£172.7bUK£43.2b12.6x8.9x2.2x
Tue, 21 Feb 2023UK£454.9bUK£168.9bUK£41.2b11.6x11x2.7x
Thu, 19 Jan 2023UK£415.5bUK£142.7bUK£34.6b12.1x12x2.9x
Price to Earnings Ratio

12x


Total Market Cap: UK£415.5bTotal Earnings: UK£34.6bTotal Revenue: UK£142.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 9.8x202420252026
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 12.9x which is higher than its 3-year average PE of 9.8x.
  • The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 24% 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 Market1.34%
Financials-1.08%
Consumer Finance0.79%
Diversified Financial0.062%
Mortgage Finance0%0
Insurance-0.78%
Capital Markets-0.81%
Banks-1.30%
Industry PE
  • Investors are most optimistic about the Insurance industry, which is trading close to its 3-year average PE ratio of 18.2x.
    • Analysts are expecting annual earnings growth of 14.4%, which is higher than its past year's earnings decline of 26.2% per year.
  • Investors are most pessimistic about the Diversified Financial industry, which is trading below its 3-year average of 8.7x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 32% 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 11% 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£1.011.0%
+UK£611.3m		89.9%PB1.3x
EMG Man GroupUK£2.569.9%
+UK£256.7m		24.6%PE20.8x
BGEO Lion Finance GroupUK£92.602.7%
+UK£104.2m		107.6%PB1.8x
PLUS Plus500UK£38.123.7%
+UK£94.5m		42.8%PE13.2x
ADM Admiral GroupUK£30.841.0%
+UK£90.9m		22.2%PE11.2x

Latest News

PRU
UK£11.66
Prudential
7D
-1.1%
1Y
95.9%
PLUS
UK£38.12
Plus500
7D
3.7%
1Y
42.8%
STAN
UK£18.24
Standard Chartered
7D
-1.7%
1Y
79.7%

STAN: Future Returns Will Depend On Steady Execution And Balanced Risk Reward

Analysts have made a small upward adjustment to their fair value estimate for Standard Chartered, supported by recent price target increases from Citi and JPMorgan to £17.75, £16.75 and £16.90. This also reflects slightly updated assumptions for the discount rate, revenue growth, profit margin and forward P/E.
LSEG
UK£90.66
London Stock Exchange Group
7D
0.3%
1Y
-21.6%

LSEG: Data Partnerships And AI Integration Will Support Long-Term Upside Potential

Our updated narrative on London Stock Exchange Group reflects a modest reset in the consolidated analyst price target to £122.84 per share, informed by a mixed set of recent Street revisions between £11.90 and £134.00 and small tweaks to long term assumptions on the discount rate, revenue growth, profit margin and future P/E. Analyst Commentary Recent Street research around London Stock Exchange Group highlights a mix of optimism and caution, with price targets now clustered between £11.90 and £134.00 per share.
EWG
UK£1.28
W.A.G payment solutions
7D
10.3%
1Y
60.0%

EWG: Future P/E Expectations Will Steer Measured Share Momentum Outlook

Analysts have lifted their fair value estimate for W.A.G payment solutions from €1.20 to €1.24, citing slight adjustments to the discount rate, revenue assumptions, profit margin outlook, and future P/E expectations. Valuation Changes Fair Value Estimate was raised slightly from €1.20 to about €1.24 per share.
HSBA
UK£12.02
HSBC Holdings
7D
-0.4%
1Y
50.6%
BARC
UK£4.73
Barclays
7D
-2.8%
1Y
81.5%
III
UK£31.27
3i Group
7D
-3.8%
1Y
-12.0%

III: Slower Momentum Will Still Deliver Compounding Returns And Dividend Support

Analysts have trimmed their 3i Group price target to £31.50 from £41.00, reflecting updated assumptions for the discount rate and earnings multiples as they factor in what they describe as slower momentum for the company. Analyst Commentary Recent research on 3i Group is skewed toward caution, with bearish analysts pointing to slower momentum and a valuation reset as key reasons for trimming expectations.
ADM
UK£30.84
Admiral Group
7D
1.0%
1Y
22.2%

There's No Escaping Admiral Group plc's (LON:ADM) Muted Earnings

Jan 07
There's No Escaping Admiral Group plc's (LON:ADM) Muted Earnings
NWG
UK£6.40
NatWest Group
7D
-3.8%
1Y
67.7%

NWG: Future Buybacks And Wealth Expansion Moves Will Support Fair Value

Analysts have lifted their price targets for NatWest Group into a higher £6.65 to £7.25 range, citing updated views on the bank's earnings potential and risk profile that feed into their refreshed valuation work. Analyst Commentary Recent research updates cluster NatWest Group price targets between £6.65 and £7.30, with several banks adjusting their models around similar levels.
BGEO
UK£92.60
Lion Finance Group
7D
2.7%
1Y
107.6%

BGEO: Expanded Buyback Authority Will Likely Reinforce Excessive Earnings Expectations

Analysts have adjusted their price targets for Lion Finance Group to reflect updated views on revenue growth of 15.70%, profit margins of 50.55%, and a forward P/E of 4.85. They see these figures as better capturing the stock's current risk profile under a discount rate of 8.46%.
WISE
UK£8.38
Wise
7D
-3.1%
1Y
-19.7%

WISE: Platform Income Durability Will Support Future Earnings Conversion Potential

Wise's analyst price targets have edged down slightly, with small adjustments such as JPMorgan trimming its target from £13.80 to £13.75. Other analysts point to moderating profit margin assumptions and a marginally higher future P/E multiple as key drivers of the updated views.
LLOY
UK£1.01
Lloyds Banking Group
7D
1.0%
1Y
89.9%

LLOY: Buybacks And Earnings Guidance Will Support A Fairly Valued Outlook

Analysts have nudged their fair value estimate for Lloyds Banking Group higher to £1.10 from £1.03, citing slightly adjusted assumptions around the discount rate, revenue growth, profit margin, and future P/E as the key drivers of the updated price target. What's in the News Lloyds Banking Group reported that from July 1, 2025 to September 30, 2025, it repurchased 800,000,000 shares, representing 1.33% of its share capital, for £667 million under its ongoing buyback programme announced on February 21, 2025 (company disclosure).
EMG
UK£2.56
Man Group
7D
9.9%
1Y
24.6%

EMG: Future P/E Assumptions Will Test Sustainability Of Recent Optimism

Analysts have lifted their price targets on Man Group to a range of £1.88 to £2.41 per share, reflecting updated assumptions that include a fair value estimate of 1.92, a discount rate of 8.61%, revenue growth of 12.21%, a profit margin of 29.52% and a future P/E of 6.84. Analyst Commentary Recent Street research on Man Group points to a cluster of higher price targets between 188 GBp and 241 GBp, with ratings such as Equal Weight and Neutral from large banks including JPMorgan and Morgan Stanley.
AV.
UK£6.77
Aviva
7D
-1.5%
1Y
44.4%

Investors Still Waiting For A Pull Back In Aviva plc (LON:AV.)

Dec 12
Investors Still Waiting For A Pull Back In Aviva plc (LON:AV.)
SAGA
UK£4.38
Saga
7D
14.1%
1Y
274.6%

Saga plc (LON:SAGA) Shares Fly 26% But Investors Aren't Buying For Growth

Dec 10
Saga plc (LON:SAGA) Shares Fly 26% But Investors Aren't Buying For Growth