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U.K. (FTSE) Financials Sector Analysis

UpdatedMay 09, 2026
DataAggregated Company Financials
Companies196
  • 7D-1.0%
  • 3M-1.6%
  • 1Y26.7%
  • YTD2.1%

Over the last 7 days, the Financials industry has dropped 1.0%, driven by HSBC Holdings declining 2.9%. Over the past 12 months, the industry was up 27%. Earnings are forecast to grow by 9.8% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 11 May 2026UK£708.2bUK£311.7bUK£62.1b11.9x11.4x2.3x
Wed, 08 Apr 2026UK£675.9bUK£311.3bUK£61.8b11.6x10.9x2.2x
Fri, 06 Mar 2026UK£694.2bUK£294.7bUK£60.2b12.3x11.5x2.4x
Sun, 01 Feb 2026UK£726.6bUK£268.2bUK£54.8b13.3x13.3x2.7x
Tue, 30 Dec 2025UK£692.0bUK£268.6bUK£54.4b12.6x12.7x2.6x
Thu, 27 Nov 2025UK£655.5bUK£271.1bUK£55.4b12.3x11.8x2.4x
Sat, 25 Oct 2025UK£647.1bUK£265.4bUK£53.8b12.7x12x2.4x
Mon, 22 Sep 2025UK£627.2bUK£264.0bUK£54.1b11.9x11.6x2.4x
Wed, 20 Aug 2025UK£623.0bUK£266.1bUK£52.5b12.5x11.9x2.3x
Fri, 18 Jul 2025UK£616.4bUK£272.8bUK£52.0b12x11.9x2.3x
Sun, 15 Jun 2025UK£589.7bUK£276.9bUK£52.0b11.6x11.3x2.1x
Tue, 13 May 2025UK£588.6bUK£278.9bUK£50.5b11.2x11.7x2.1x
Thu, 10 Apr 2025UK£497.2bUK£282.7bUK£53.0b9.5x9.4x1.8x
Sat, 08 Mar 2025UK£592.8bUK£298.5bUK£53.3b10.5x11.1x2x
Mon, 03 Feb 2025UK£583.6bUK£298.9bUK£54.1b11.1x10.8x2x
Wed, 01 Jan 2025UK£544.9bUK£297.9bUK£53.5b10.8x10.2x1.8x
Fri, 29 Nov 2024UK£531.6bUK£296.8bUK£53.4b10.9x10x1.8x
Sun, 27 Oct 2024UK£508.0bUK£293.9bUK£51.5b11.5x9.9x1.7x
Tue, 24 Sep 2024UK£466.8bUK£269.3bUK£46.6b11.2x10x1.7x
Thu, 22 Aug 2024UK£471.6bUK£265.9bUK£48.0b11.8x9.8x1.8x
Sat, 20 Jul 2024UK£456.0bUK£240.1bUK£46.9b12.1x9.7x1.9x
Mon, 17 Jun 2024UK£446.2bUK£241.5bUK£47.2b12.1x9.5x1.8x
Wed, 15 May 2024UK£459.9bUK£241.5bUK£47.3b12.9x9.7x1.9x
Fri, 12 Apr 2024UK£464.0bUK£266.1bUK£53.3b11.9x8.7x1.7x
Sun, 10 Mar 2024UK£447.8bUK£244.8bUK£53.1b12.5x8.4x1.8x
Tue, 06 Feb 2024UK£378.9bUK£185.1bUK£51.0b12.3x7.4x2x
Thu, 04 Jan 2024UK£398.8bUK£188.4bUK£51.5b13.4x7.7x2.1x
Sat, 02 Dec 2023UK£390.3bUK£188.1bUK£51.5b12.3x7.6x2.1x
Mon, 30 Oct 2023UK£367.2bUK£185.4bUK£49.2b11.3x7.5x2x
Wed, 27 Sep 2023UK£395.4bUK£182.9bUK£48.3b12.7x8.2x2.2x
Fri, 25 Aug 2023UK£374.5bUK£179.7bUK£47.5b12.8x7.9x2.1x
Sun, 23 Jul 2023UK£418.4bUK£180.2bUK£50.9b12.3x8.2x2.3x
Tue, 20 Jun 2023UK£406.6bUK£177.2bUK£51.3b12.6x7.9x2.3x
Thu, 18 May 2023UK£410.3bUK£181.5bUK£51.6b12.8x8x2.3x
Price to Earnings Ratio

8x


Total Market Cap: UK£410.3bTotal Earnings: UK£51.6bTotal Revenue: UK£181.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 10x202420252026
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 11.4x which is higher than its 3-year average PE of 10.0x.
  • 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 6.4% per year over the last three years.
  • Revenues for these companies have grown 20% 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-0.81%
Financials-1.01%
Consumer Finance0.76%
Insurance0.20%
Mortgage Finance0%0
Banks-1.12%
Capital Markets-1.26%
Diversified Financial-1.55%
Industry PE
  • Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 6.8x.
    • Analysts are expecting annual earnings growth of 9.4%, which is higher than its past year's earnings growth of 5.4% per year.
  • Investors are most pessimistic about the Diversified Financial industry, which is trading below its 3-year average of 8.2x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 19% over the next 5 years.
  • However this is lower than its past earnings growth rate of 63% per year.
  • In contrast, the Capital Markets industry is expected to see its earnings grow by 8.6% 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
NWG NatWest GroupUK£5.802.5%
+UK£1.1b		18.0%PB1.1x
PRU PrudentialUK£11.353.1%
+UK£863.5m		35.8%PE9.7x
LLOY Lloyds Banking GroupUK£0.990.8%
+UK£388.0m		35.6%PB1.2x
III 3i GroupUK£25.901.0%
+UK£269.7m		-37.9%PE4.2x
HSX HiscoxUK£16.244.8%
+UK£241.1m		41.2%PE11.8x

Latest News

STAN
UK£18.88
Standard Chartered
7D
0.6%
1Y
76.9%
LGEN
UK£2.51
Legal & General Group
7D
-1.4%
1Y
4.5%
Narrative Update • May 09

LGEN: Dividend And Buyback Programme Will Support Re Rated Earnings Profile

The analyst price target for Legal & General has shifted to £2.85, a £0.10 change that reflects updated views on valuation and earnings quality following recent rating moves and target adjustments across several brokers. Analyst Commentary Recent Street research around Legal & General Group has been mixed, with a blend of rating downgrades and price target revisions.
HSBA
UK£13.20
HSBC Holdings
7D
-2.9%
1Y
55.4%
NWG
UK£5.80
NatWest Group
7D
2.5%
1Y
18.0%
III
UK£25.90
3i Group
7D
1.0%
1Y
-37.9%
LLOY
UK£0.99
Lloyds Banking Group
7D
0.8%
1Y
35.6%
HSX
UK£16.24
Hiscox
7D
4.8%
1Y
41.2%
ADM
UK£31.72
Admiral Group
7D
-7.5%
1Y
-5.3%
Narrative Update • May 07

ADM: Clearer Multi Year Earnings And UK Motor Pricing Will Support Upside

Analysts have trimmed the fair value estimate for Admiral Group from £41.00 to £38.00, while pointing to higher forecast revenue growth, stronger profit margins and a lower future P/E multiple. Recent research upgrades highlight expectations for improved UK Motor pricing and a clearer multi year earnings profile.
BARC
UK£4.35
Barclays
7D
0.3%
1Y
41.7%
WISE
UK£10.60
Wise
7D
-2.1%
1Y
2.0%
ABDN
UK£2.20
Aberdeen Group
7D
6.0%
1Y
40.3%
LSEG
UK£90.38
London Stock Exchange Group
7D
-6.1%
1Y
-20.0%
Narrative Update • May 03

LSEG: Activist Pressure And AI Partnerships Will Support Future Share Upside

Analysts have nudged their price targets on London Stock Exchange Group higher, with one recent move adding £1.00. This reflects updated views on fair value, discount rate, revenue growth assumptions, profit margin and future P/E levels.
HSBK
US$33.25
Halyk Bank of Kazakhstan
7D
-5.3%
1Y
45.2%
Narrative Update • May 03

HSBK: Board Uncertainty And Rich P/E Will Sustain Overvaluation

Analysts have kept their $31.90 price target for Halyk Bank of Kazakhstan unchanged, explaining that adjustments to their revenue growth, profit margin and forward P/E assumptions offset one another in their updated model. What's in the News Shareholders approved an amendment to the Charter of JSC Halyk Bank at the Annual General Shareholders' Meeting held on April 23, 2026, signaling changes to the bank's governing documents (Key Developments).
STJ
UK£11.83
St. James's Place
7D
-2.2%
1Y
15.4%
Narrative Update • May 01

STJ: Future Share Buybacks And Higher P E Will Offset AI Threat

Analyst fair value for St. James's Place edges up from £16.40 to about £16.47, as analysts adjust price targets after a mix of recent target cuts and raises across the Street. Analyst Commentary Recent price target moves for St. James's Place show a split view, with some analysts lifting targets into the £18.70 to £20.00 range while others are trimming estimates and, in one case, cutting the rating to Equal Weight.
AV.
UK£6.20
Aviva
7D
-1.2%
1Y
6.2%
Narrative Update • Apr 27

AV.: Dividend And Buyback Policy Will Support Measured Medium Term Outlook

Analysts have nudged their 12 month price target for Aviva up by £0.05 to £7.65, citing updated assumptions around profit margin and a slightly higher future P/E multiple as key drivers of the revision. Analyst Commentary Analysts making bullish adjustments to their models are using the small uplift in the 12 month price target to reflect what they see as a modestly stronger outlook for Aviva's profitability and valuation multiples.
PRU
UK£11.35
Prudential
7D
3.1%
1Y
35.8%