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U.K. (FTSE) Financials Sector Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
Companies254
  • 7D1.3%
  • 3M-2.5%
  • 1Y9.7%
  • YTD9.7%

Over the last 7 days, the Financials industry has risen 1.3%, driven by gains from HSBC Holdings of 3.8%. This takes the industry's 12 month performance to a gain of 9.7%.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Sat, 04 Dec 2021UK£500.4bUK£325.2bUK£46.2b12.2x
Mon, 01 Nov 2021UK£541.2bUK£329.9bUK£47.0b13.3x
Wed, 29 Sep 2021UK£508.0bUK£327.0bUK£41.7b13.7x
Fri, 27 Aug 2021UK£521.4bUK£325.7bUK£41.7b14.6x
Sat, 03 Jul 2021UK£502.8bUK£325.5bUK£41.7b13.8x
Tue, 06 Apr 2021UK£482.9bUK£300.6bUK£29.7b15.5x
Fri, 08 Jan 2021UK£428.6bUK£283.0bUK£22.7b15.4x
Thu, 01 Oct 2020UK£334.7bUK£273.0bUK£16.8b14.4x
Sun, 05 Jul 2020UK£362.1bUK£259.5bUK£15.9b13.9x
Wed, 08 Apr 2020UK£329.8bUK£305.8bUK£24.1b11.2x
Tue, 31 Dec 2019UK£503.7bUK£378.2bUK£32.8b13.4x
Fri, 04 Oct 2019UK£472.7bUK£324.9bUK£34.9b12.5x
Mon, 08 Jul 2019UK£489.9bUK£291.3bUK£38.7b12.9x
Sun, 31 Mar 2019UK£473.6bUK£244.0bUK£36.8b14.6x
Wed, 02 Jan 2019UK£438.0bUK£214.1bUK£33.6b14.3x
PE Ratio

14.3x

Total Market Cap: UK£438.0bTotal Earnings: UK£33.6bTotal Revenue: UK£214.1b0%0%0%3 Year10 Year
20202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 14.1x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Financials industry have grown 11% per year over the last three years, and revenues for these companies have grown 15% 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?

Banks3.60%
Mortgage Finance2.70%
Diversified Financial0.71%
Insurance0.63%
Consumer Finance0.29%
Capital Markets-1.49%

Industry PE: Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio of 11.8x. This is likely because analysts are expecting annual earnings growth of 36%, which is higher than its past year's earnings decline of 10% per year. Meanwhile, investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 9.4x.

Forecasted Growth: Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 36% over the next 5 years. This is better than its past earnings decline of 10% per year. Meanwhile, the Banks industry is expected to see its earnings grow by 3.3% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
HSBA HSBC Holdings3.8%+UK£3.1b1.7%PB0.7x
NWG NatWest Group4.1%+UK£931.6m27.0%PB0.6x
AV. Aviva5.9%+UK£821.5m16.1%PE12.4x
BARC Barclays2.8%+UK£813.9m25.6%PB0.5x
III 3i Group3.4%+UK£476.5m25.4%PE4.9x
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Latest News

AJB

UK£3.70

AJ Bell

7D

-6.8%

1Y

-14.0%

AV.

UK£3.93

Aviva

7D

5.9%

1Y

16.1%

EMG

UK£2.11

Man Group

7D

-3.9%

1Y

63.3%

ABDN

UK£2.34

abrdn

7D

-1.8%

1Y

-19.2%