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U.K. (FTSE) Financials Sector Analysis

UpdatedDec 24, 2025
DataAggregated Company Financials
Companies206
  • 7D3.4%
  • 3M10.8%
  • 1Y37.4%
  • YTD35.7%

In the last week, the Financials industry is up 2.9%, with HSBC Holdings up 5.7%. In the last 12 months, the industry was up 38%. As for the next few years, earnings are expected to grow by 13% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 24 Dec 2025UK£702.6bUK£271.2bUK£55.2b12.3x12.7x2.6x
Fri, 21 Nov 2025UK£633.6bUK£271.0bUK£55.4b12.1x11.4x2.3x
Sun, 19 Oct 2025UK£615.6bUK£264.0bUK£54.2b12.1x11.3x2.3x
Tue, 16 Sep 2025UK£633.3bUK£263.1bUK£54.0b12.1x11.7x2.4x
Thu, 14 Aug 2025UK£625.9bUK£263.7bUK£52.3b12.7x12x2.4x
Sat, 12 Jul 2025UK£609.0bUK£272.0bUK£51.8b11.8x11.8x2.2x
Mon, 09 Jun 2025UK£603.8bUK£277.2bUK£52.1b12x11.6x2.2x
Wed, 07 May 2025UK£576.6bUK£277.7bUK£50.1b11.2x11.5x2.1x
Fri, 04 Apr 2025UK£550.5bUK£280.8bUK£52.4b10.4x10.5x2x
Sun, 02 Mar 2025UK£617.8bUK£300.4bUK£54.2b10.6x11.4x2.1x
Tue, 28 Jan 2025UK£570.1bUK£298.4bUK£54.0b10.6x10.6x1.9x
Thu, 26 Dec 2024UK£539.9bUK£297.8bUK£53.8b10.9x10x1.8x
Sat, 23 Nov 2024UK£524.9bUK£298.3bUK£54.2b10.3x9.7x1.8x
Mon, 21 Oct 2024UK£481.6bUK£269.6bUK£46.9b11.8x10.3x1.8x
Wed, 18 Sep 2024UK£471.5bUK£270.6bUK£46.9b11.4x10.1x1.7x
Fri, 16 Aug 2024UK£471.7bUK£266.5bUK£48.3b11.9x9.8x1.8x
Sun, 14 Jul 2024UK£456.9bUK£239.7bUK£46.7b12x9.8x1.9x
Tue, 11 Jun 2024UK£455.8bUK£241.0bUK£46.9b12.6x9.7x1.9x
Thu, 09 May 2024UK£461.8bUK£243.1bUK£48.4b12.7x9.5x1.9x
Sat, 06 Apr 2024UK£467.0bUK£265.6bUK£53.1b11.9x8.8x1.8x
Mon, 04 Mar 2024UK£421.0bUK£205.4bUK£50.7b12.6x8.3x2x
Wed, 31 Jan 2024UK£390.8bUK£188.3bUK£51.4b12.9x7.6x2.1x
Fri, 29 Dec 2023UK£405.9bUK£187.9bUK£51.3b13.4x7.9x2.2x
Sun, 26 Nov 2023UK£386.3bUK£188.6bUK£51.7b12.4x7.5x2x
Tue, 24 Oct 2023UK£378.6bUK£182.8bUK£48.3b11.5x7.8x2.1x
Thu, 21 Sep 2023UK£397.1bUK£185.4bUK£47.5b12.8x8.4x2.1x
Sat, 19 Aug 2023UK£375.2bUK£179.1bUK£47.4b12.7x7.9x2.1x
Mon, 17 Jul 2023UK£403.9bUK£179.0bUK£50.5b12.2x8x2.3x
Wed, 14 Jun 2023UK£415.2bUK£178.7bUK£51.4b13.2x8.1x2.3x
Fri, 12 May 2023UK£410.8bUK£180.2bUK£50.2b13x8.2x2.3x
Sun, 09 Apr 2023UK£398.7bUK£171.3bUK£42.7b13x9.3x2.3x
Tue, 07 Mar 2023UK£452.2bUK£173.8bUK£43.4b11.9x10.4x2.6x
Thu, 02 Feb 2023UK£426.0bUK£143.1bUK£34.7b12.2x12.3x3x
Sat, 31 Dec 2022UK£380.1bUK£144.2bUK£34.9b11.4x10.9x2.6x
Price to Earnings Ratio

10.9x


Total Market Cap: UK£380.1bTotal Earnings: UK£34.9bTotal Revenue: UK£144.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 9.8x202320242025
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 12.7x 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 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 Market2.11%
Financials3.42%
Banks4.31%
Insurance3.01%
Consumer Finance2.73%
Diversified Financial1.46%
Capital Markets1.43%
Mortgage Finance0%0
Industry PE
  • Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 22.8x.
    • Analysts are expecting annual earnings growth of 32.8%, which is lower than the prior year's growth of 55.3% per year.
  • Investors are most pessimistic about the Diversified Financial industry, which is trading below its 3-year average of 8.9x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 33% 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 12% 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
HSBA HSBC HoldingsUK£11.755.7%
+UK£10.9b		52.2%PB1.4x
BARC BarclaysUK£4.724.7%
+UK£2.9b		78.9%PB0.9x
LLOY Lloyds Banking GroupUK£0.982.6%
+UK£1.5b		79.9%PB1.3x
NWG NatWest GroupUK£6.492.4%
+UK£1.2b		62.2%PB1.2x
PRU PrudentialUK£11.524.3%
+UK£1.2b		81.9%PE11.4x

Latest News

LSEG
UK£88.52
London Stock Exchange Group
7D
1.7%
1Y
-21.8%

London Stock Exchange Group plc's (LON:LSEG) Popularity With Investors Is Clear

Dec 23
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ASAI
UK£1.92
ASA International Group
7D
-6.3%
1Y
145.4%
AJB
UK£4.42
AJ Bell
7D
-3.4%
1Y
-2.7%

AJ Bell (LON:AJB) Will Pay A Larger Dividend Than Last Year At £0.0975

Dec 21
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FRP
UK£1.33
FRP Advisory Group
7D
-7.3%
1Y
-10.1%
BGEO
UK£91.65
Lion Finance Group
7D
-0.5%
1Y
95.0%

BGEO: Future Caucasus Banking Expansion Will Likely Expose Fragile Asset Quality

Analysts have raised their price target on Lion Finance Group from £52.26 to £79.40, citing stronger expected revenue growth, slightly higher required returns, and support from recent Overweight and Outperform initiations that highlight the group’s exposure to high growth Caucasus banking markets. Analyst Commentary Recent Street research on Lion Finance Group has emphasized the company’s dominant positioning in high growth Caucasus banking markets, with price targets in the 9,200 to 9,400 GBp range implying significant upside from current levels.
STAN
UK£18.07
Standard Chartered
7D
3.0%
1Y
82.3%
BARC
UK£4.72
Barclays
7D
4.7%
1Y
78.9%

BARC: Modest Wealth Expansion Plans Will Support A Balanced Future Outlook

Analysts have raised their price target for Barclays slightly to reflect a modest uptick in fair value, supported by incremental improvements in projected revenue growth, profit margins, and future earnings multiples. What's in the News Priority Technology Holdings appointed Barclays as financial advisor to a committee of independent and disinterested directors overseeing strategic matters, underscoring ongoing demand for Barclays advisory capabilities (company announcement).
HSBA
UK£11.75
HSBC Holdings
7D
5.7%
1Y
52.2%

HSBA: Future Returns Will Depend On Succession Decisions And Capital Deployment Choices

Analysts have modestly raised their price target on HSBC Holdings, reflecting a slightly higher fair value estimate of approximately $10.88 versus $10.62 previously, supported by expectations for disciplined cost control, solid mid teens returns on equity, and resilient revenue growth despite only marginally higher forward valuation multiples. Analyst Commentary Recent Street research on HSBC Holdings reflects a generally constructive stance on the bank's execution and capital return story, tempered by selective concerns about deal making and capital deployment.
ICG
UK£20.46
ICG
7D
-0.5%
1Y
-1.6%

ICG: Higher Price Outlook Will Support Long-Term Earnings Durability

Analysts have nudged their price target on ICG modestly higher to £28.00 from £26.00, citing a slightly lower discount rate, a marginally stronger long term margin outlook and a still supportive, though somewhat tempered, revenue growth profile. Analyst Commentary Analysts characterise the latest price target revision as a fine tuning of an already constructive view on ICG, reflecting incremental confidence in the durability of earnings and capital deployment, rather than a wholesale change in thesis.
LLOY
UK£0.98
Lloyds Banking Group
7D
2.6%
1Y
79.9%

LLOY: Future Earnings Upgrades Will Not Justify Richer Multiple

Analysts have raised their price target on Lloyds Banking Group by approximately 7 percent, citing a slightly lower discount rate, marginally stronger revenue growth expectations, and improved forecast profit margins that together support a modest uplift in the bank's future price to earnings multiple. What's in the News Lloyds raised its 2025 net interest income guidance to around GBP 13.6 billion, signaling slightly stronger profitability expectations than previously indicated (company guidance).
NWG
UK£6.49
NatWest Group
7D
2.4%
1Y
62.2%

Here's Why NatWest Group (LON:NWG) Has Caught The Eye Of Investors

Dec 15
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PRU
UK£11.52
Prudential
7D
4.3%
1Y
81.9%

Here's Why We Think Prudential (LON:PRU) Is Well Worth Watching

Dec 14
Here's Why We Think Prudential (LON:PRU) Is Well Worth Watching
AV.
UK£6.83
Aviva
7D
2.7%
1Y
47.5%

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

Dec 12
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TBCG
UK£40.45
TBC Bank Group
7D
-0.5%
1Y
28.6%

TBCG: Higher Future Multiple Will Support Bullish Outlook Despite Softer Margins

Analysts have slightly reduced their price target on TBC Bank Group, trimming fair value by around 4 percent to approximately $56.17, as they factor in more conservative assumptions for revenue growth and profit margins, partially offset by a modestly higher expected future P/E multiple. Valuation Changes The fair value estimate has fallen slightly from $58.18 to $56.17 per share, reflecting a modest reassessment of fundamentals.
CLDN
UK£3.78
Caledonia Investments
7D
-1.0%
1Y
6.9%
HICL
UK£1.15
HICL Infrastructure
7D
-1.4%
1Y
-0.9%

HICL Infrastructure (LON:HICL) Is Increasing Its Dividend To £0.0209

Nov 21
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