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U.K. (FTSE) Banks Industry Analysis

UpdatedMar 19, 2024
DataAggregated Company Financials
Companies13
  • 7D1.9%
  • 3M3.3%
  • 1Y10.8%
  • YTD0.6%

The Banks industry is up 1.7% in the last week, with HSBC Holdings up 3.9%. This means that the industry has gained 11% over the past year. Looking forward, earnings are expected to remain mostly flat in the next few years.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 19 Mar 2024UK£221.3bUK£120.3bUK£36.3b6.2x6.1x1.8x
Thu, 15 Feb 2024UK£187.7bUK£107.5bUK£37.0b5.2x5.1x1.7x
Sat, 13 Jan 2024UK£194.1bUK£109.2bUK£37.4b5.4x5.2x1.8x
Mon, 11 Dec 2023UK£199.9bUK£110.1bUK£37.7b5.4x5.3x1.8x
Wed, 08 Nov 2023UK£190.3bUK£111.0bUK£38.1b5.1x5x1.7x
Fri, 06 Oct 2023UK£204.4bUK£105.0bUK£34.9b4.9x5.9x1.9x
Sun, 03 Sep 2023UK£195.3bUK£103.0bUK£34.2b5.3x5.7x1.9x
Tue, 01 Aug 2023UK£211.3bUK£96.5bUK£32.3b5.3x6.5x2.2x
Thu, 29 Jun 2023UK£223.2bUK£120.6bUK£37.8b5.1x5.9x1.9x
Sat, 27 May 2023UK£229.3bUK£125.3bUK£38.1b5.6x6x1.8x
Mon, 24 Apr 2023UK£225.1bUK£115.2bUK£30.4b6.3x7.4x2x
Wed, 22 Mar 2023UK£220.3bUK£116.3bUK£30.6b6.3x7.2x1.9x
Fri, 17 Feb 2023UK£247.6bUK£112.1bUK£27.7b5.3x8.9x2.2x
Sun, 15 Jan 2023UK£210.9bUK£87.5bUK£21.6b7.1x9.8x2.4x
Tue, 13 Dec 2022UK£182.9bUK£87.6bUK£21.6b6.5x8.5x2.1x
Thu, 10 Nov 2022UK£173.1bUK£90.4bUK£22.1b5.9x7.8x1.9x
Sat, 08 Oct 2022UK£170.7bUK£94.4bUK£24.4b5.5x7x1.8x
Mon, 05 Sep 2022UK£188.3bUK£92.2bUK£23.9b6.2x7.9x2x
Wed, 03 Aug 2022UK£188.4bUK£89.3bUK£23.0b6.2x8.2x2.1x
Fri, 01 Jul 2022UK£209.8bUK£113.5bUK£28.5b4.4x7.4x1.8x
Sun, 29 May 2022UK£216.7bUK£111.1bUK£27.9b4.7x7.8x2x
Tue, 26 Apr 2022UK£203.0bUK£110.5bUK£28.5b5.9x7.1x1.8x
Thu, 24 Mar 2022UK£214.4bUK£107.6bUK£27.7b6.5x7.7x2x
Sat, 19 Feb 2022UK£244.7bUK£104.1bUK£25.9b7x9.5x2.3x
Mon, 17 Jan 2022UK£248.3bUK£103.8bUK£25.7b7.1x9.7x2.4x
Wed, 15 Dec 2021UK£214.1bUK£105.4bUK£26.0b6.1x8.2x2x
Fri, 12 Nov 2021UK£236.9bUK£114.0bUK£28.8b6.2x8.2x2.1x
Sun, 10 Oct 2021UK£233.2bUK£109.3bUK£23.3b7.1x10x2.1x
Tue, 07 Sep 2021UK£218.4bUK£108.3bUK£23.0b6.7x9.5x2x
Thu, 05 Aug 2021UK£221.7bUK£108.3bUK£23.0b6.9x9.6x2x
Sun, 09 May 2021UK£223.6bUK£94.5bUK£11.8b14.4x19x2.4x
Price to Earnings Ratio

18.3x


Total Market Cap: UK£215.3bTotal Earnings: UK£11.8bTotal Revenue: UK£94.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 9x202220232024
Current Industry PE
  • Investors are pessimistic on the British Banks industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 6.1x which is lower than its 3-year average PE of 9.0x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 46% per year over the last three years.
  • Revenues for these companies have grown 8.4% 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 Market0.54%
Financials1.36%
Banks1.95%
Diversified Banks1.96%
Regional Banks-11.19%
Industry PE
  • Investors are most optimistic about the Regional Banks industry even though it's trading below its 3-year average PE ratio of 20.6x.
    • Analysts are expecting annual earnings growth of 30.6% and investors are willing to pay a premium for that growth.
  • Investors are most pessimistic about the Diversified Banks industry, which is trading below its 3-year average of 8.9x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 31% over the next 5 years.
  • In contrast, the Diversified Banks industry is expected to see its earnings growth to stay flat 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£6.034.6%
+UK£4.8b
11.2%PB0.8x
BARC BarclaysUK£1.771.6%
+UK£374.8m
29.5%PB0.4x
LLOY Lloyds Banking GroupUK£0.490.7%
+UK£168.2m
7.1%PB0.7x
TCS TCS Group HoldingUS$25.600.4%
+US$19.9m
97.9%PB1.8x
ARBB Arbuthnot Banking GroupUK£10.650.9%
+UK£1.6m
17.0%PB0.7x
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Latest News

HSBK

US$17.54

Halyk Bank of Kazakhstan

7D

-2.4%

1Y

56.6%

STAN

UK£6.50

Standard Chartered

7D

-1.5%

1Y

5.7%

BGEO

UK£48.55

Bank of Georgia Group

7D

-5.0%

1Y

99.0%

MTRO

UK£0.30

Metro Bank Holdings

7D

-11.2%

1Y

-72.5%

HSBA

UK£6.03

HSBC Holdings

7D

4.6%

1Y

11.2%

VMUK

UK£2.10

Virgin Money UK

7D

-0.2%

1Y

48.1%

NWG

UK£2.40

NatWest Group

7D

-3.9%

1Y

-6.9%

CBG

UK£3.34

Close Brothers Group

7D

-10.5%

1Y

-62.9%

LLOY

UK£0.49

Lloyds Banking Group

7D

0.7%

1Y

7.1%

BARC

UK£1.77

Barclays

7D

1.6%

1Y

29.5%

ARBB

UK£10.65

Arbuthnot Banking Group

7D

0.9%

1Y

17.0%

TBCG

UK£32.35

TBC Bank Group

7D

-1.1%

1Y

46.7%

TCS

US$25.60

TCS Group Holding

7D

0.4%

1Y

97.9%