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U.K. (FTSE) Banks Industry Analysis

UpdatedDec 15, 2025
DataAggregated Company Financials
Companies13
  • 7D2.3%
  • 3M13.8%
  • 1Y54.8%
  • YTD52.7%

In the last week, the Banks industry is up 2.3%, with HSBC Holdings up 4.4%. This takes the industry's 12 month performance to a gain of 55%. Looking forward, earnings are forecast to grow by 12% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Dec 2025UK£413.0bUK£125.5bUK£33.8b9.1x12.2x3.3x
Thu, 13 Nov 2025UK£411.1bUK£126.5bUK£34.0b8.6x12.1x3.3x
Sat, 11 Oct 2025UK£363.3bUK£122.1bUK£34.6b8.6x10.5x3x
Mon, 08 Sep 2025UK£350.1bUK£121.7bUK£34.4b8.4x10.2x2.9x
Wed, 06 Aug 2025UK£347.6bUK£122.3bUK£34.5b9.4x10.1x2.8x
Fri, 04 Jul 2025UK£327.4bUK£120.5bUK£34.2b8.3x9.6x2.7x
Sun, 01 Jun 2025UK£325.9bUK£121.3bUK£34.5b8.3x9.4x2.7x
Tue, 29 Apr 2025UK£308.5bUK£122.2bUK£36.2b7.9x8.5x2.5x
Thu, 27 Mar 2025UK£326.1bUK£124.5bUK£36.9b8.3x8.8x2.6x
Sat, 22 Feb 2025UK£317.8bUK£125.4bUK£37.7b6.3x8.4x2.5x
Mon, 20 Jan 2025UK£291.2bUK£125.0bUK£37.6b4.7x7.7x2.3x
Wed, 18 Dec 2024UK£270.3bUK£122.3bUK£36.7b4.9x7.4x2.2x
Fri, 15 Nov 2024UK£260.4bUK£122.5bUK£36.7b4.8x7.1x2.1x
Sun, 13 Oct 2024UK£216.4bUK£96.1bUK£30.4b6x7.1x2.3x
Tue, 10 Sep 2024UK£213.7bUK£97.7bUK£30.7b5.9x7x2.2x
Thu, 08 Aug 2024UK£208.9bUK£99.4bUK£31.3b6.1x6.7x2.1x
Sat, 06 Jul 2024UK£216.9bUK£96.8bUK£31.3b6x6.9x2.2x
Mon, 03 Jun 2024UK£222.5bUK£97.2bUK£31.4b6.3x7.1x2.3x
Wed, 01 May 2024UK£219.4bUK£98.1bUK£31.7b6x6.9x2.2x
Fri, 29 Mar 2024UK£229.5bUK£121.4bUK£36.6b5.5x6.3x1.9x
Sun, 25 Feb 2024UK£214.6bUK£166.4bUK£92.5b5.8x2.3x1.3x
Tue, 23 Jan 2024UK£189.4bUK£109.5bUK£37.5b5.2x5.1x1.7x
Thu, 21 Dec 2023UK£200.7bUK£109.6bUK£37.5b5.4x5.3x1.8x
Sat, 18 Nov 2023UK£195.2bUK£110.4bUK£37.9b5.3x5.2x1.8x
Mon, 16 Oct 2023UK£209.6bUK£105.2bUK£34.9b5x6x2x
Wed, 13 Sep 2023UK£196.2bUK£103.6bUK£34.4b5.2x5.7x1.9x
Fri, 11 Aug 2023UK£207.0bUK£101.9bUK£33.7b5.5x6.1x2x
Sun, 09 Jul 2023UK£221.9bUK£119.6bUK£37.5b5.1x5.9x1.9x
Tue, 06 Jun 2023UK£226.8bUK£125.0bUK£38.1b5.7x6x1.8x
Thu, 04 May 2023UK£225.0bUK£122.8bUK£37.3b5.9x6x1.8x
Sat, 01 Apr 2023UK£217.3bUK£115.8bUK£30.5b6.2x7.1x1.9x
Mon, 27 Feb 2023UK£246.8bUK£117.8bUK£31.5b5.4x7.8x2.1x
Wed, 25 Jan 2023UK£212.3bUK£87.1bUK£21.5b7.1x9.9x2.4x
Fri, 23 Dec 2022UK£187.3bUK£88.3bUK£21.8b6.6x8.6x2.1x
Price to Earnings Ratio

8.6x


Total Market Cap: UK£187.3bTotal Earnings: UK£21.8bTotal Revenue: UK£88.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 7.6x202320242025
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 12.2x which is higher than its 3-year average PE of 7.6x.
  • The 3-year average PS ratio of 2.3x is lower than the industry's current PS ratio of 3.3x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 13% 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-0.0071%
Financials1.12%
Banks2.31%
Diversified Banks2.31%
Regional Banks2.10%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 7.6x.
    • Analysts are expecting annual earnings growth of 11.8%, 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 19.1x.
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 12% 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£11.255.7%
+UK£10.3b		47.7%PB1.3x
STAN Standard CharteredUK£17.616.3%
+UK£2.4b		77.6%PB1x
BARC BarclaysUK£4.543.9%
+UK£2.3b		68.1%PB0.8x
NWG NatWest GroupUK£6.301.5%
+UK£714.9m		55.1%PB1.2x
HSBK Halyk Bank of KazakhstanUS$28.5012.4%
+US$858.9m		54.1%PB1.2x

Latest News

NWG
UK£6.30
NatWest Group
7D
1.5%
1Y
55.1%

Here's Why NatWest Group (LON:NWG) Has Caught The Eye Of Investors

Dec 15
Here's Why NatWest Group (LON:NWG) Has Caught The Eye Of Investors
BGEO
UK£92.95
Lion Finance Group
7D
-1.1%
1Y
101.0%
HSBK
US$28.50
Halyk Bank of Kazakhstan
7D
12.4%
1Y
54.1%

HSBK: Future Buybacks And Offering Will Support Capital Structure And Earnings

Analysts have modestly raised their price target on Halyk Bank of Kazakhstan to $29.90 from $29.90, citing a slightly lower discount rate and a higher expected future price to earnings multiple that more than offset softer assumptions for revenue growth and profit margins. What's in the News Halyk Bank of Kazakhstan has filed a follow on equity offering of approximately KZT 143.4 billion via 12 million Global Depositary Receipts, priced at KZT 11,946.4 per GDR (Key Developments).
HSBA
UK£11.25
HSBC Holdings
7D
5.7%
1Y
47.7%
STAN
UK£17.61
Standard Chartered
7D
6.3%
1Y
77.6%

STAN: Future Returns Will Depend On Executing Digital Custody And Tokenization Strategy

The analyst price target for Standard Chartered has inched higher to around £16.18 from approximately £16.25, as analysts broadly factor in slightly improved long term earnings prospects and valuation multiples following a series of modest target hikes across the Street. Analyst Commentary Recent research updates present a mixed but overall constructive outlook on Standard Chartered, with incremental target increases offset by one notable reduction.
TBCG
UK£40.75
TBC Bank Group
7D
0.4%
1Y
31.9%

TBCG: Higher Future Multiple Will Support Bullish Outlook Despite Softer Margins

Analysts have slightly reduced their price target on TBC Bank Group, trimming fair value by around 4 percent to approximately $56.17, as they factor in more conservative assumptions for revenue growth and profit margins, partially offset by a modestly higher expected future P/E multiple. Valuation Changes The fair value estimate has fallen slightly from $58.18 to $56.17 per share, reflecting a modest reassessment of fundamentals.
BARC
UK£4.54
Barclays
7D
3.9%
1Y
68.1%
LLOY
UK£0.95
Lloyds Banking Group
7D
-0.6%
1Y
71.8%

LLOY: Future Returns Will Reflect Buybacks Wealth Expansion And Stable Profit Outlook

Analysts have raised their price target for Lloyds Banking Group, reflecting modest improvements in fair value estimates and slightly stronger expectations for revenue growth and profitability. What's in the News Lloyds Banking Group raised its earnings guidance for fiscal 2025, now expecting net interest income of around GBP 13.6 billion, slightly ahead of previous guidance (company guidance).
CBG
UK£4.69
Close Brothers Group
7D
2.0%
1Y
100.0%
SHAW
UK£4.50
Shawbrook Group
7D
2.2%
1Y
n/a
ARBB
UK£8.83
Arbuthnot Banking Group
7D
-1.9%
1Y
-0.8%