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

U.K. (FTSE) Banks Industry Analysis

UpdatedMay 02, 2026
DataAggregated Company Financials
Companies13
  • 7D2.2%
  • 3M-1.8%
  • 1Y50.1%
  • YTD3.8%

In the last week, the Banks industry is up 1.1%, with HSBC Holdings up 2.9%. This means that the industry has gained 52% over the past year. As for the next few years, earnings are expected to grow by 9.6% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 02 May 2026UK£456.6bUK£131.9bUK£38.8b8.9x11.8x3.5x
Mon, 30 Mar 2026UK£406.4bUK£132.2bUK£38.6b8.3x10.5x3.1x
Wed, 25 Feb 2026UK£453.5bUK£126.9bUK£34.9b9x13x3.6x
Fri, 23 Jan 2026UK£452.7bUK£125.1bUK£33.7b10x13.4x3.6x
Sun, 21 Dec 2025UK£432.6bUK£125.5bUK£33.8b9.3x12.8x3.4x
Tue, 18 Nov 2025UK£398.5bUK£126.4bUK£34.0b8.5x11.7x3.2x
Thu, 16 Oct 2025UK£363.9bUK£121.9bUK£34.5b8.7x10.5x3x
Sat, 13 Sep 2025UK£365.8bUK£121.4bUK£34.4b8.8x10.6x3x
Mon, 11 Aug 2025UK£351.2bUK£121.7bUK£34.4b8.7x10.2x2.9x
Wed, 09 Jul 2025UK£331.1bUK£120.8bUK£34.3b8.4x9.7x2.7x
Fri, 06 Jun 2025UK£326.3bUK£120.9bUK£34.4b8.2x9.5x2.7x
Sun, 04 May 2025UK£310.6bUK£121.8bUK£34.7b7.6x9x2.6x
Tue, 01 Apr 2025UK£316.8bUK£124.7bUK£37.1b7.8x8.5x2.5x
Thu, 27 Feb 2025UK£328.9bUK£125.6bUK£37.3b6.8x8.8x2.6x
Sat, 25 Jan 2025UK£293.5bUK£123.4bUK£37.1b5.1x7.9x2.4x
Mon, 23 Dec 2024UK£269.5bUK£123.0bUK£36.9b4.9x7.3x2.2x
Wed, 20 Nov 2024UK£263.9bUK£122.6bUK£36.9b5x7.2x2.2x
Fri, 18 Oct 2024UK£219.2bUK£96.4bUK£30.5b6.2x7.2x2.3x
Sun, 15 Sep 2024UK£213.4bUK£97.5bUK£30.7b5.9x7x2.2x
Tue, 13 Aug 2024UK£210.5bUK£99.0bUK£31.2b6.1x6.8x2.1x
Thu, 11 Jul 2024UK£215.9bUK£96.7bUK£31.3b6x6.9x2.2x
Sat, 08 Jun 2024UK£219.5bUK£97.3bUK£31.5b6.3x7x2.3x
Mon, 06 May 2024UK£222.6bUK£98.2bUK£31.6b5.7x7x2.3x
Wed, 03 Apr 2024UK£230.5bUK£121.6bUK£36.7b5.4x6.3x1.9x
Fri, 01 Mar 2024UK£220.1bUK£121.0bUK£36.5b6x6x1.8x
Sun, 28 Jan 2024UK£194.2bUK£109.4bUK£37.5b5.4x5.2x1.8x
Tue, 26 Dec 2023UK£200.9bUK£109.3bUK£37.4b5.2x5.4x1.8x
Thu, 23 Nov 2023UK£192.4bUK£110.4bUK£37.9b5x5.1x1.7x
Sat, 21 Oct 2023UK£199.7bUK£105.2bUK£34.9b4.9x5.7x1.9x
Mon, 18 Sep 2023UK£204.1bUK£104.0bUK£34.5b5.4x5.9x2x
Wed, 16 Aug 2023UK£199.5bUK£102.0bUK£33.7b5.4x5.9x2x
Fri, 14 Jul 2023UK£227.2bUK£118.4bUK£37.1b5.3x6.1x1.9x
Sun, 11 Jun 2023UK£227.7bUK£121.4bUK£37.9b5.7x6x1.9x
Tue, 09 May 2023UK£226.5bUK£123.2bUK£37.6b5.4x6x1.8x
Price to Earnings Ratio

6x


Total Market Cap: UK£226.5bTotal Earnings: UK£37.6bTotal Revenue: UK£123.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.1x202420252026
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 11.8x which is higher than its 3-year average PE of 8.1x.
  • The 3-year average PS ratio of 2.4x is lower than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 2.2% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the U.K. Financials industry?

GB Market-0.18%
Financials1.03%
Banks2.21%
Diversified Banks2.22%
Regional Banks0.60%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.1x.
    • Analysts expect its future annual earnings growth (9.5%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 20.6x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings growth rate of 5.7% per year.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 9.5% 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£13.592.9%
+UK£6.6b		60.8%PB1.6x
STAN Standard CharteredUK£18.777.7%
+UK£2.9b		71.2%PB1x
BARC BarclaysUK£4.342.3%
+UK£1.2b		44.1%PB0.8x
LLOY Lloyds Banking GroupUK£0.980.5%
+UK£199.6m		39.2%PB1.2x
MTRO Metro Bank HoldingsUK£1.498.1%
+UK£75.4m		45.6%PB0.7x

Latest News

HSBK
US$35.10
Halyk Bank of Kazakhstan
7D
0.6%
1Y
53.3%
STAN
UK£18.77
Standard Chartered
7D
7.7%
1Y
71.2%
LLOY
UK£0.98
Lloyds Banking Group
7D
0.5%
1Y
39.2%
NWG
UK£5.66
NatWest Group
7D
-2.4%
1Y
17.3%
BGEO
UK£108.50
Lion Finance Group
7D
-1.7%
1Y
78.9%

BGEO: Higher Price Level Will Increase Risk From Lower Future P E Assumptions

Analysts have lifted their price target on Lion Finance Group to £13,100 from £10,700. This reflects updated assumptions around a slightly lower discount rate, a small adjustment in long term revenue growth and profit margin forecasts, and a modestly lower future P/E multiple.
BARC
UK£4.34
Barclays
7D
2.3%
1Y
44.1%

BARC: Future Buybacks And Income Guidance Will Support Higher Share Price

Analysts have lifted their price target on Barclays to £X from £Y, reflecting updated views on revenue growth, profit margins, and a higher forward P/E assumption. What's in the News Barclays PLC has announced a new share repurchase program of up to £500 million, adding to its existing capital return activity (Buyback Transaction Announcements).
SHAW
UK£3.29
Shawbrook Group
7D
-3.4%
1Y
n/a
CBG
UK£4.42
Close Brothers Group
7D
-1.1%
1Y
34.1%

CBG: Lower Discount Rate And Sustainable Margins Will Support Higher Earnings Multiple

Analysts have lifted their price target on Close Brothers Group, citing a slightly lower discount rate and marginally adjusted assumptions around revenue growth, profit margins and future P/E that together point to a modestly higher implied equity value in £ terms. Analyst Commentary Recent research under the banner of “Close Brothers just upgraded at UBS, here's why” gives a clearer view of what is driving the higher implied equity value and where risks still sit for Close Brothers Group.
MTRO
UK£1.49
Metro Bank Holdings
7D
8.1%
1Y
45.6%

MTRO: Stable Assumptions Will Shape A More Measured Future Upside Potential

Analysts have maintained their fair value estimate for Metro Bank Holdings at £1.45. They cite largely unchanged assumptions for the discount rate, revenue growth, profit margin and future P/E ratio as the basis for keeping the price target at the same level.
HSBA
UK£13.59
HSBC Holdings
7D
2.9%
1Y
60.8%
TBCG
UK£47.66
TBC Bank Group
7D
-2.1%
1Y
1.4%

TBCG: Steady Fair Value And 2025 Dividend Plan Will Shape Outlook

Analysts have maintained their fair value estimate for TBC Bank Group at £55.35 per share, with only small tweaks to inputs such as the discount rate, revenue growth outlook and future P/E assumption. These adjustments support a steady price target rather than a material reset.
STB
UK£12.62
Secure Trust Bank
7D
-0.8%
1Y
115.4%

STB: Share Buyback Prospects Will Support Stronger Future Share Price

Analysts have lifted their price target for Secure Trust Bank from £18.73 to £21.00, reflecting updated assumptions around revenue growth, profit margins and future P/E multiples. What's in the News On March 12, 2026, Secure Trust Bank announced that its Board of Directors will consider launching a share repurchase program, under which the company would buy back its own shares (Key Developments).
ARBB
UK£8.50
Arbuthnot Banking Group
7D
-0.6%
1Y
-8.4%