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U.K. (FTSE) Banks Industry Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies13
  • 7D-4.1%
  • 3M-1.7%
  • 1Y33.1%
  • YTD-7.2%

Over the last 7 days, the Banks industry has dropped 4.1%, driven by a pullback from HSBC Holdings of 4.4%. This takes the industry's 12 month performance to a gain of 33%. Looking forward, earnings are forecast to grow by 9.5% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 17 Mar 2026UK£409.0bUK£132.5bUK£38.6b8.7x10.6x3.1x
Thu, 12 Feb 2026UK£459.5bUK£126.0bUK£34.5b9.7x13.3x3.6x
Sat, 10 Jan 2026UK£440.8bUK£125.4bUK£33.8b10x13x3.5x
Mon, 08 Dec 2025UK£402.1bUK£125.8bUK£33.9b9.2x11.9x3.2x
Wed, 05 Nov 2025UK£393.0bUK£126.9bUK£34.1b8.5x11.5x3.1x
Fri, 03 Oct 2025UK£372.1bUK£121.6bUK£34.4b8.8x10.8x3.1x
Sun, 31 Aug 2025UK£348.6bUK£121.6bUK£34.4b8.5x10.1x2.9x
Tue, 29 Jul 2025UK£350.5bUK£121.9bUK£34.8b9.7x10.1x2.9x
Thu, 26 Jun 2025UK£328.5bUK£120.4bUK£34.2b8.3x9.6x2.7x
Sat, 24 May 2025UK£326.9bUK£121.0bUK£34.4b8.2x9.5x2.7x
Mon, 21 Apr 2025UK£293.5bUK£122.9bUK£36.4b7.4x8.1x2.4x
Wed, 19 Mar 2025UK£323.1bUK£123.9bUK£36.7b8.2x8.8x2.6x
Fri, 14 Feb 2025UK£308.0bUK£123.7bUK£37.2b6x8.3x2.5x
Sun, 12 Jan 2025UK£274.7bUK£124.8bUK£37.6b4.7x7.3x2.2x
Tue, 10 Dec 2024UK£271.0bUK£122.1bUK£36.6b4.9x7.4x2.2x
Thu, 07 Nov 2024UK£265.0bUK£121.3bUK£36.3b4.9x7.3x2.2x
Sat, 05 Oct 2024UK£217.9bUK£95.9bUK£30.3b6x7.2x2.3x
Mon, 02 Sep 2024UK£217.8bUK£97.5bUK£30.6b6.2x7.1x2.2x
Wed, 31 Jul 2024UK£222.9bUK£97.1bUK£31.3b6.7x7.1x2.3x
Fri, 28 Jun 2024UK£217.6bUK£97.6bUK£31.6b5.9x6.9x2.2x
Sun, 26 May 2024UK£221.3bUK£97.3bUK£31.3b6.1x7.1x2.3x
Tue, 23 Apr 2024UK£233.8bUK£122.6bUK£37.0b5.4x6.3x1.9x
Thu, 21 Mar 2024UK£222.7bUK£120.6bUK£36.3b6.2x6.1x1.8x
Sat, 17 Feb 2024UK£194.4bUK£107.2bUK£36.9b5.3x5.3x1.8x
Mon, 15 Jan 2024UK£194.1bUK£109.2bUK£37.4b5.4x5.2x1.8x
Wed, 13 Dec 2023UK£194.3bUK£110.2bUK£37.7b5.4x5.1x1.8x
Fri, 10 Nov 2023UK£190.2bUK£111.1bUK£38.1b5.2x5x1.7x
Sun, 08 Oct 2023UK£207.5bUK£104.6bUK£34.7b5x6x2x
Tue, 05 Sep 2023UK£194.4bUK£102.8bUK£34.1b5.3x5.7x1.9x
Thu, 03 Aug 2023UK£206.9bUK£97.2bUK£32.6b5.2x6.3x2.1x
Sat, 01 Jul 2023UK£227.1bUK£120.2bUK£37.7b5.3x6x1.9x
Mon, 29 May 2023UK£229.2bUK£125.2bUK£38.1b5.6x6x1.8x
Wed, 26 Apr 2023UK£222.2bUK£115.4bUK£30.4b6.3x7.3x1.9x
Fri, 24 Mar 2023UK£216.9bUK£116.0bUK£30.5b6.1x7.1x1.9x
Price to Earnings Ratio

7.1x


Total Market Cap: UK£216.9bTotal Earnings: UK£30.5bTotal Revenue: UK£116.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 7.9x202420252026
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 10.6x which is higher than its 3-year average PE of 7.9x.
  • The 3-year average PS ratio of 2.4x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 8.1% per year over the last three years.
  • Revenues for these companies have grown 4.5% 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 Market-0.10%
Financials-2.27%
Banks-4.05%
Regional Banks-1.05%
Diversified Banks-4.07%
Industry PE
  • Investors are most optimistic about the Regional Banks industry even though it's trading below its 3-year average PE ratio of 20.0x.
    • Analysts are expecting annual earnings growth of 22.7%, which is higher than its past year's earnings growth of 5.7% per year.
  • Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 7.9x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 23% 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 9.4% 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
HSBK Halyk Bank of KazakhstanUS$31.500.3%
+US$27.3m		43.5%PB1.3x
ARBB Arbuthnot Banking GroupUK£8.730.3%
+UK£408.0k		-1.4%PB0.5x

Latest News

HSBA
UK£11.96
HSBC Holdings
7D
-4.4%
1Y
36.2%
CBG
UK£3.58
Close Brothers Group
7D
-16.0%
1Y
3.5%

CBG: RBC Upgrade And Revised P/E Assumptions Will Support Future Share Repricing

Analysts have adjusted their price target for Close Brothers Group to £5.29. This reflects updated assumptions around the group’s discount rate and future P/E, and draws on recent research support for the stock following an upgrade at a major broker.
BARC
UK£3.88
Barclays
7D
-2.3%
1Y
31.6%
SHAW
UK£3.59
Shawbrook Group
7D
-6.4%
1Y
n/a
STAN
UK£15.50
Standard Chartered
7D
-4.8%
1Y
33.2%
LLOY
UK£0.95
Lloyds Banking Group
7D
-0.3%
1Y
35.9%
HSBK
US$31.50
Halyk Bank of Kazakhstan
7D
0.3%
1Y
43.5%
NWG
UK£5.73
NatWest Group
7D
-0.4%
1Y
27.8%
BGEO
UK£98.00
Lion Finance Group
7D
-4.1%
1Y
78.8%
ARBB
UK£8.73
Arbuthnot Banking Group
7D
0.3%
1Y
-1.4%