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U.K. (FTSE) Financials Sector Analysis

UpdatedFeb 09, 2026
DataAggregated Company Financials
Companies202
  • 7D-1.8%
  • 3M8.1%
  • 1Y31.4%
  • YTD3.7%

The Financials industry has been flat over the last week, but London Stock Exchange Group has lost 7.6%. As for the the longer term, the industry is up 32% over the past 12 months. As for the next few years, earnings are expected to grow by 11% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 09 Feb 2026UK£724.7bUK£268.6bUK£54.9b13x13.2x2.7x
Wed, 07 Jan 2026UK£711.4bUK£268.5bUK£54.3b12.9x13.1x2.6x
Fri, 05 Dec 2025UK£660.5bUK£270.4bUK£55.2b12x12x2.4x
Sun, 02 Nov 2025UK£665.1bUK£268.9bUK£53.9b12.3x12.3x2.5x
Tue, 30 Sep 2025UK£634.8bUK£264.2bUK£54.2b12x11.7x2.4x
Thu, 28 Aug 2025UK£625.2bUK£266.8bUK£53.4b12.3x11.7x2.3x
Sat, 26 Jul 2025UK£620.8bUK£272.9bUK£52.1b12x11.9x2.3x
Mon, 23 Jun 2025UK£589.9bUK£277.6bUK£52.1b11.7x11.3x2.1x
Wed, 21 May 2025UK£601.3bUK£278.8bUK£51.0b11.7x11.8x2.2x
Fri, 18 Apr 2025UK£546.4bUK£279.3bUK£52.0b10x10.5x2x
Sun, 16 Mar 2025UK£587.0bUK£296.8bUK£52.9b10.6x11.1x2x
Tue, 11 Feb 2025UK£589.7bUK£299.2bUK£54.2b10.9x10.9x2x
Thu, 09 Jan 2025UK£543.2bUK£299.1bUK£54.1b10.3x10x1.8x
Sat, 07 Dec 2024UK£540.4bUK£296.4bUK£53.3b11.3x10.1x1.8x
Mon, 04 Nov 2024UK£510.9bUK£294.6bUK£52.8b11.1x9.7x1.7x
Wed, 02 Oct 2024UK£467.6bUK£268.1bUK£46.5b11.3x10.1x1.7x
Fri, 30 Aug 2024UK£473.2bUK£265.4bUK£47.3b11.7x10x1.8x
Sun, 28 Jul 2024UK£458.3bUK£241.0bUK£47.2b11.9x9.7x1.9x
Tue, 25 Jun 2024UK£458.3bUK£241.6bUK£47.2b12.4x9.7x1.9x
Thu, 23 May 2024UK£459.0bUK£241.1bUK£47.1b13.1x9.7x1.9x
Sat, 20 Apr 2024UK£458.6bUK£266.9bUK£53.6b11.7x8.6x1.7x
Mon, 18 Mar 2024UK£438.4bUK£232.3bUK£52.8b12.4x8.3x1.9x
Wed, 14 Feb 2024UK£374.6bUK£184.8bUK£51.0b12.1x7.4x2x
Fri, 12 Jan 2024UK£390.1bUK£187.8bUK£51.3b13x7.6x2.1x
Sun, 10 Dec 2023UK£398.4bUK£189.0bUK£51.7b12.4x7.7x2.1x
Tue, 07 Nov 2023UK£372.4bUK£188.7bUK£51.6b11.6x7.2x2x
Thu, 05 Oct 2023UK£390.3bUK£183.4bUK£48.5b12.1x8x2.1x
Sat, 02 Sep 2023UK£382.0bUK£180.0bUK£47.7b12.9x8x2.1x
Mon, 31 Jul 2023UK£402.0bUK£170.1bUK£46.0b12.6x8.7x2.4x
Wed, 28 Jun 2023UK£393.3bUK£177.5bUK£51.3b11.9x7.7x2.2x
Fri, 26 May 2023UK£411.6bUK£183.0bUK£51.9b12.9x7.9x2.2x
Sun, 23 Apr 2023UK£405.5bUK£171.3bUK£42.7b12.9x9.5x2.4x
Tue, 21 Mar 2023UK£359.1bUK£166.3bUK£41.7b11.5x8.6x2.2x
Thu, 16 Feb 2023UK£428.8bUK£144.5bUK£35.0b12x12.3x3x
Price to Earnings Ratio

12.3x


Total Market Cap: UK£428.8bTotal Earnings: UK£35.0bTotal Revenue: UK£144.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 9.9x202420252026
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 13.2x which is higher than its 3-year average PE of 9.9x.
  • The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.7x.
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 23% 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 Market0.18%
Financials-1.80%
Mortgage Finance0%0
Insurance-0.35%
Consumer Finance-0.81%
Banks-1.54%
Capital Markets-3.17%
Diversified Financial-3.23%
Industry PE
  • Investors are most optimistic about the Insurance industry, which is trading close to its 3-year average PE ratio of 16.3x.
    • Analysts are expecting annual earnings growth of 13.5%, 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 close to its 3-year average of 8.5x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 28% 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
BEZ BeazleyUK£12.365.8%
+UK£400.5m		44.5%PE10.1x
III 3i GroupUK£33.530.6%
+UK£203.6m		-16.6%PE5.4x
PLUS Plus500UK£45.166.3%
+UK£188.0m		57.2%PE15.8x
HSBA HSBC HoldingsUK£13.060.06%
+UK£137.2m		50.8%PB1.6x
SHAW Shawbrook GroupUK£4.912.9%
+UK£74.7m		n/aPB1.6x

Latest News

ADM
UK£28.00
Admiral Group
7D
0.6%
1Y
0.2%

Here's Why We Think Admiral Group (LON:ADM) Might Deserve Your Attention Today

Feb 08
Here's Why We Think Admiral Group (LON:ADM) Might Deserve Your Attention Today
BEZ
UK£12.36
Beazley
7D
5.8%
1Y
44.5%

BEZ: Takeover Proposal And Mixed Ratings Will Shape Future Share Path

Narrative Update Analysts have adjusted their price targets on Beazley in a mixed fashion, with some firms trimming targets, such as a cut to £9.30 from £9.60, while others, like Deutsche Bank, lifted theirs to £10.50 from £9.77. This reflects differing views on valuation, discount rates and future P/E assumptions.
III
UK£33.53
3i Group
7D
0.6%
1Y
-16.6%

III: Slower Momentum Will Still Deliver Durable Returns And Dividend Visibility

Analysts have trimmed their fair value estimate for 3i Group to £42.01 from £42.22, reflecting slightly lower revenue growth and profit margin assumptions, partly offset by updated discount rate and future P/E inputs, along with a mix of recent target changes and rating moves across the Street. Analyst Commentary The recent research updates show a split in opinion on 3i Group, with some analysts adjusting price targets upward and others cutting targets and ratings.
BARC
UK£4.79
Barclays
7D
-4.1%
1Y
58.2%
PRU
UK£11.82
Prudential
7D
-2.0%
1Y
73.4%

PRU: Share Buybacks And Revised Assumptions Will Shape Future Market Verdict

Analysts have lifted their price targets on Prudential to £15.00 and £12.70, reflecting updated assumptions that include a fair value estimate of 11.9, a discount rate of 7.198%, revenue growth of 2.40%, a profit margin of 20.22% and a future P/E of 17.21. Analyst Commentary Recent Street research points to a supportive tone on Prudential, with both JPMorgan and Morgan Stanley updating their price targets in line with the valuation inputs discussed earlier.
NWG
UK£6.59
NatWest Group
7D
-3.6%
1Y
49.4%
PLUS
UK£45.16
Plus500
7D
6.3%
1Y
57.2%
HSBA
UK£13.06
HSBC Holdings
7D
0.06%
1Y
50.8%

HSBA: Future Returns Will Hinge On Chair Succession Rather Than Execution

Analysts have nudged their fair value estimate for HSBC Holdings higher to £11.54 from £11.25, citing updated assumptions for slightly faster revenue growth, a modestly higher profit margin, and a P/E multiple that lines up with recent price target moves and rating changes from Citi, Erste Group, and Morgan Stanley. Analyst Commentary Recent Street research on HSBC Holdings points to a mix of optimism around execution in the next few years and some caution on how much of that is already reflected in the share price.
WISE
UK£8.99
Wise
7D
-5.4%
1Y
-17.1%

WISE: Execution Risks Around Lower Future P/E Will Pressure Overvalued Shares

Analysts have raised their price target on Wise, now implying fair value of £7.60 per share compared with £7.50 previously. They cite updated assumptions around revenue growth, profitability and a lower future P/E multiple.
LLOY
UK£1.07
Lloyds Banking Group
7D
-4.2%
1Y
70.0%

LLOY: Buybacks And Dividend Policy Will Support Measured Future Return Profile

Analysts have lifted their price target for Lloyds Banking Group to £1.08 from £0.96, citing adjusted assumptions for revenue growth, profit margins and future P/E multiples that point to a higher assessed fair value. What's in the News The Board of Directors has authorized a new share buyback plan, approved on 30 January 2026.
LSEG
UK£75.02
London Stock Exchange Group
7D
-8.9%
1Y
-35.8%

LSEG: Private Markets Data Partnership Will Support Long-Term Upside Potential

Analysts have nudged their price target on London Stock Exchange Group slightly higher to £123.06 from £122.84, reflecting updated views on fair value, discount rate, revenue growth, profit margins and future P/E assumptions. What's in the News LSEG agreed a partnership with Nasdaq to distribute institutional-grade private markets intelligence through LSEG Workspace and Datafeeds, broadening the range of private investment data available to users (Key Developments).
STAN
UK£18.82
Standard Chartered
7D
-1.3%
1Y
70.4%

Future Earnings Depend On Sustaining Wealth Inflows And Cost Cuts In A Multipolar World

Catalysts About Standard Chartered Standard Chartered is an international bank focused on corporate, institutional, and affluent retail clients across its global network. What are the underlying business or industry changes driving this perspective?
LRE
UK£6.44
Lancashire Holdings
7D
2.7%
1Y
1.6%

LRE: Refined Discount Rate Will Support More Constructive Future P E Expectations

The latest analyst update nudged Lancashire Holdings' price target up to £7.00 from £6.70, with analysts pointing to refreshed assumptions on fair value, discount rate, revenue growth, profit margin and future P/E as the key drivers behind the change. Analyst Commentary Bullish Takeaways Bullish analysts see the lifted price target to £7.00 as a reflection of updated fair value work that supports the current valuation, rather than requiring a dramatic re rating from here.
ASHM
UK£2.53
Ashmore Group
7D
4.6%
1Y
51.3%

ASHM: Higher Profit Assumptions Will Face Ongoing P/E Discount Risk

The analyst price target for Ashmore Group has moved higher to £1.74 from £1.56, as analysts point to updated assumptions around revenue growth, profit margins and a lower future P/E, alongside recent mixed Street research that includes a £0.10 price target increase at one firm and a £0.01 trim at another. Analyst Commentary Bullish Takeaways Bullish analysts see the higher £1.74 target as more in line with updated assumptions on revenue potential and profit margins, which they view as better reflected in the revised P/E framework.
ICG
UK£17.00
ICG
7D
-5.8%
1Y
-27.8%
SHAW
UK£4.91
Shawbrook Group
7D
2.9%
1Y
n/a