Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Banks Industry Analysis

UpdatedJan 31, 2026
DataAggregated Company Financials
Companies13
  • 7D4.0%
  • 3M19.8%
  • 1Y58.7%
  • YTD5.7%

Over the last 7 days, the Banks industry has risen 4.0%, driven by gains from HSBC Holdings of 4.4%. This means that the industry has gained 59% over the past year. Earnings are forecast to grow by 11% annually.

Industry Valuation and Performance

Has the U.K. Banks Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 31 Jan 2026UK£466.1bUK£124.1bUK£33.4b10.1x13.9x3.8x
Mon, 29 Dec 2025UK£434.5bUK£125.0bUK£33.7b9.3x12.9x3.5x
Wed, 26 Nov 2025UK£391.2bUK£126.4bUK£34.0b8.4x11.5x3.1x
Fri, 24 Oct 2025UK£365.0bUK£122.6bUK£34.5b8.9x10.6x3x
Sun, 21 Sep 2025UK£367.2bUK£121.8bUK£34.5b8.5x10.7x3x
Tue, 19 Aug 2025UK£353.7bUK£121.5bUK£34.3b9.1x10.3x2.9x
Thu, 17 Jul 2025UK£337.1bUK£121.5bUK£34.5b8.6x9.8x2.8x
Sat, 14 Jun 2025UK£323.0bUK£120.9bUK£34.4b8x9.4x2.7x
Mon, 12 May 2025UK£313.7bUK£121.6bUK£34.6b7.8x9.1x2.6x
Wed, 09 Apr 2025UK£275.0bUK£125.4bUK£37.3b6.8x7.4x2.2x
Fri, 07 Mar 2025UK£323.1bUK£124.5bUK£37.1b7.6x8.7x2.6x
Sun, 02 Feb 2025UK£300.5bUK£123.9bUK£37.2b5.3x8.1x2.4x
Tue, 31 Dec 2024UK£275.2bUK£123.3bUK£37.0b4.8x7.4x2.2x
Thu, 28 Nov 2024UK£264.7bUK£122.6bUK£36.8b4.9x7.2x2.2x
Sat, 26 Oct 2024UK£252.6bUK£120.4bUK£35.0b5.5x7.2x2.1x
Mon, 23 Sep 2024UK£213.8bUK£96.6bUK£30.3b6.7x7.1x2.2x
Wed, 21 Aug 2024UK£214.7bUK£97.9bUK£30.8b6.2x7x2.2x
Fri, 19 Jul 2024UK£216.8bUK£96.2bUK£31.1b6.2x7x2.3x
Sun, 16 Jun 2024UK£213.8bUK£97.5bUK£31.6b5.9x6.8x2.2x
Tue, 14 May 2024UK£224.7bUK£98.2bUK£31.6b6x7.1x2.3x
Thu, 11 Apr 2024UK£240.5bUK£121.8bUK£36.7b5.4x6.5x2x
Sat, 09 Mar 2024UK£217.6bUK£120.0bUK£36.2b6.2x6x1.8x
Mon, 05 Feb 2024UK£193.4bUK£109.7bUK£37.6b5.3x5.1x1.8x
Wed, 03 Jan 2024UK£202.0bUK£109.7bUK£37.6b5.1x5.4x1.8x
Fri, 01 Dec 2023UK£193.2bUK£109.7bUK£37.6b5.3x5.1x1.8x
Sun, 29 Oct 2023UK£189.4bUK£106.9bUK£35.5b4.7x5.3x1.8x
Tue, 26 Sep 2023UK£203.8bUK£104.8bUK£34.8b5.4x5.9x1.9x
Thu, 24 Aug 2023UK£194.0bUK£102.1bUK£33.8b5.2x5.7x1.9x
Sat, 22 Jul 2023UK£236.5bUK£119.6bUK£37.5b5.3x6.3x2x
Mon, 19 Jun 2023UK£227.8bUK£119.8bUK£37.6b5.6x6.1x1.9x
Wed, 17 May 2023UK£226.6bUK£124.0bUK£37.9b5.3x6x1.8x
Fri, 14 Apr 2023UK£223.3bUK£114.9bUK£30.3b6.3x7.4x1.9x
Sun, 12 Mar 2023UK£234.0bUK£117.5bUK£31.5b5x7.4x2x
Tue, 07 Feb 2023UK£212.3bUK£88.4bUK£21.8b7.3x9.7x2.4x
Price to Earnings Ratio

9.7x


Total Market Cap: UK£212.3bTotal Earnings: UK£21.8bTotal Revenue: UK£88.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 7.8x202420252026
Current Industry PE
  • Investors are optimistic on the British Banks industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 13.9x which is higher than its 3-year average PE of 7.8x.
  • The 3-year average PS ratio of 2.3x is lower than the industry's current PS ratio of 3.8x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 15% per year over the last three years.
  • Revenues for these companies have grown 12% 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 industry?

GB Market0.65%
Financials2.37%
Banks3.96%
Diversified Banks3.96%
Regional Banks2.75%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 7.8x.
    • Analysts are expecting annual earnings growth of 11.0%, which is higher than its past year's earnings decline of 0.9% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 19.5x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 18% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Diversified 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
HSBA HSBC HoldingsUK£12.854.4%
+UK£9.3b		52.0%PB1.6x
LLOY Lloyds Banking GroupUK£1.097.2%
+UK£4.3b		74.8%PB1.4x
NWG NatWest GroupUK£6.652.9%
+UK£1.5b		53.6%PB1.3x
STAN Standard CharteredUK£18.621.8%
+UK£753.0m		70.5%PB1.1x
BARC BarclaysUK£4.861.2%
+UK£729.6m		63.7%PB0.9x

Latest News

LLOY
UK£1.09
Lloyds Banking Group
7D
7.2%
1Y
74.8%
BARC
UK£4.86
Barclays
7D
1.2%
1Y
63.7%
STAN
UK£18.62
Standard Chartered
7D
1.8%
1Y
70.5%

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?
HSBK
US$32.15
Halyk Bank of Kazakhstan
7D
10.5%
1Y
67.6%
HSBA
UK£12.85
HSBC Holdings
7D
4.4%
1Y
52.0%

Hang Seng Privatization And Hong Kong Real Estate Pressures Will Weigh On Future Returns

Catalysts About HSBC Holdings HSBC Holdings is a global banking and financial services group with a large presence in Hong Kong, the U.K., Asia and the Middle East. What are the underlying business or industry changes driving this perspective?
TBCG
UK£42.50
TBC Bank Group
7D
5.1%
1Y
27.2%

TBCG: Stable Fair Value And Slightly Lower Risk Assumptions Will Support Upside

Narrative update on TBC Bank Group The updated analyst price target for TBC Bank Group now stands at £54.89, with analysts pointing to only small adjustments in discount rate assumptions and future P/E expectations as key drivers of the revised view. Valuation Changes Fair Value: unchanged at £54.89 per share, indicating no revision to the central valuation estimate.
NWG
UK£6.65
NatWest Group
7D
2.9%
1Y
53.6%

NWG: Future Capital Returns And Wealth Moves Will Support Fair Value

Our NatWest Group narrative fair value estimate edges higher to £6.77 from £6.63 as analysts broadly lift price targets, citing updated capital expectations and modest tweaks to revenue growth, discount rate and P/E assumptions. Analyst Commentary Bullish Takeaways Bullish analysts are lifting price targets into a £6.65 to £7.30 per share range, which broadly supports our £6.77 narrative fair value estimate and points to a cluster of views around similar valuation levels.
BGEO
UK£100.90
Lion Finance Group
7D
4.6%
1Y
112.2%

BGEO: Expanded Buyback And CFO Transition Will Sustain Excessive Earnings Expectations

Analysts have trimmed their price target for Lion Finance Group to US$79.40, a small adjustment that reflects slightly revised assumptions around the discount rate, revenue growth, profit margin and future P/E multiples. What's in the News Long serving finance leader Sulkhan Gvalia plans to step down from his executive CFO role in March 2026 after roughly 20 years with Lion Finance Group, while staying on as a non executive board member across several subsidiaries, including Ameriabank in Armenia (Key Developments).
CBG
UK£5.05
Close Brothers Group
7D
-2.5%
1Y
58.1%

CBG: Revised Revenue And Margin Assumptions Will Shape Future Share Performance

Analysts have modestly lifted their fair value estimate for Close Brothers Group to £5.26 from £4.93, citing adjusted assumptions for revenue growth, profit margins, discount rate and future P/E as key factors behind the updated price target narrative. Analyst Commentary Recent research updates on Close Brothers Group reflect a mix of optimism and caution, with price targets and fair value work moving in different directions over the past few months.
ARBB
UK£8.73
Arbuthnot Banking Group
7D
-0.3%
1Y
-6.4%