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

U.K. (FTSE) Banks Industry Analysis

UpdatedMay 27, 2026
DataAggregated Company Financials
Companies13
  • 7D4.9%
  • 3M-0.9%
  • 1Y46.2%
  • YTD6.8%

In the last week, the Banks industry is up 4.9%, with HSBC Holdings up 4.5%. In the last 12 months, the industry was up 46%. Looking forward, earnings are forecast to grow by 10% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 27 May 2026UK£468.3bUK£133.3bUK£39.2b8.7x12x3.5x
Fri, 24 Apr 2026UK£451.8bUK£131.5bUK£38.4b9x11.8x3.4x
Sun, 22 Mar 2026UK£394.2bUK£131.5bUK£38.5b8.5x10.2x3x
Tue, 17 Feb 2026UK£444.3bUK£126.5bUK£34.8b9.4x12.8x3.5x
Thu, 15 Jan 2026UK£443.4bUK£125.2bUK£33.7b9.6x13.1x3.5x
Sat, 13 Dec 2025UK£413.1bUK£125.6bUK£33.8b9.1x12.2x3.3x
Mon, 10 Nov 2025UK£393.9bUK£126.3bUK£34.0b8.6x11.6x3.1x
Wed, 08 Oct 2025UK£373.8bUK£121.8bUK£34.5b9x10.8x3.1x
Fri, 05 Sep 2025UK£352.9bUK£122.0bUK£34.5b8.6x10.2x2.9x
Sun, 03 Aug 2025UK£341.1bUK£122.4bUK£34.5b9.2x9.9x2.8x
Tue, 01 Jul 2025UK£329.7bUK£120.2bUK£34.1b8.5x9.7x2.7x
Thu, 29 May 2025UK£324.4bUK£121.4bUK£34.5b8.2x9.4x2.7x
Sat, 26 Apr 2025UK£308.6bUK£122.8bUK£36.4b7.9x8.5x2.5x
Mon, 24 Mar 2025UK£320.0bUK£124.3bUK£36.8b8x8.7x2.6x
Wed, 19 Feb 2025UK£314.8bUK£124.0bUK£38.0b6.2x8.3x2.5x
Fri, 17 Jan 2025UK£287.9bUK£124.6bUK£37.5b4.8x7.7x2.3x
Sun, 15 Dec 2024UK£273.7bUK£122.8bUK£36.8b5x7.4x2.2x
Tue, 12 Nov 2024UK£261.2bUK£121.4bUK£36.3b5x7.2x2.2x
Thu, 10 Oct 2024UK£214.6bUK£96.1bUK£30.4b6x7.1x2.2x
Sat, 07 Sep 2024UK£210.1bUK£97.5bUK£30.6b6x6.9x2.2x
Mon, 05 Aug 2024UK£206.9bUK£98.8bUK£31.1b6.2x6.7x2.1x
Wed, 03 Jul 2024UK£217.9bUK£97.4bUK£31.5b6x6.9x2.2x
Fri, 31 May 2024UK£222.2bUK£97.3bUK£31.5b6.3x7.1x2.3x
Sun, 28 Apr 2024UK£213.8bUK£97.8bUK£31.8b6x6.7x2.2x
Tue, 26 Mar 2024UK£229.8bUK£121.2bUK£36.6b5.2x6.3x1.9x
Thu, 22 Feb 2024UK£210.2bUK£130.3bUK£41.0b5.2x5.1x1.6x
Sat, 20 Jan 2024UK£186.6bUK£109.5bUK£37.5b5.2x5x1.7x
Mon, 18 Dec 2023UK£198.2bUK£109.5bUK£37.5b5.4x5.3x1.8x
Wed, 15 Nov 2023UK£187.9bUK£110.1bUK£37.8b5.3x5x1.7x
Fri, 13 Oct 2023UK£211.6bUK£104.9bUK£34.8b5x6.1x2x
Sun, 10 Sep 2023UK£192.0bUK£103.6bUK£34.4b5.2x5.6x1.9x
Tue, 08 Aug 2023UK£206.4bUK£101.7bUK£33.6b5.2x6.1x2x
Thu, 06 Jul 2023UK£226.2bUK£120.2bUK£37.7b5.2x6x1.9x
Sat, 03 Jun 2023UK£227.5bUK£124.9bUK£38.1b5.7x6x1.8x
Price to Earnings Ratio

6x


Total Market Cap: UK£227.5bTotal Earnings: UK£38.1bTotal Revenue: UK£124.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.2x202420252026
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 12.0x which is higher than its 3-year average PE of 8.2x.
  • The 3-year average PS ratio of 2.5x 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 Market1.80%
Financials3.58%
Banks4.90%
Regional Banks6.72%
Diversified Banks4.88%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.2x.
    • Analysts expect its future annual earnings growth (10.0%) 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 20.9x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 21% 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 10% 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£13.864.5%
+UK£10.2b		59.8%PB1.6x
BARC BarclaysUK£4.546.7%
+UK£3.9b		38.2%PB0.8x
LLOY Lloyds Banking GroupUK£1.025.4%
+UK£3.0b		29.3%PB1.2x
NWG NatWest GroupUK£5.965.2%
+UK£2.3b		13.8%PB1.1x
STAN Standard CharteredUK£19.795.3%
+UK£2.2b		70.8%PB1.1x

Latest News

SHAW
UK£3.10
Shawbrook Group
7D
5.6%
1Y
n/a
LLOY
UK£1.02
Lloyds Banking Group
7D
5.4%
1Y
29.3%
STAN
UK£19.79
Standard Chartered
7D
5.3%
1Y
70.8%
ARBB
UK£8.18
Arbuthnot Banking Group
7D
-1.5%
1Y
-14.6%
HSBK
US$31.25
Halyk Bank of Kazakhstan
7D
-0.5%
1Y
31.9%
NWG
UK£5.96
NatWest Group
7D
5.2%
1Y
13.8%
HSBA
UK£13.86
HSBC Holdings
7D
4.5%
1Y
59.8%
BARC
UK£4.54
Barclays
7D
6.7%
1Y
38.2%
TBCG
UK£44.60
TBC Bank Group
7D
-0.2%
1Y
-3.3%
Narrative Update • May 15

TBCG: Dividend Continuity And Leadership Transition Will Support Future Upside

Analysts have trimmed their fair value estimate for TBC Bank Group from £55.35 to £54.78, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E multiples. What's in the News TBC Bank Group PLC plans to appoint Guy Stevens as Group Chief Financial Officer, effective 13 July 2026.
CBG
UK£4.59
Close Brothers Group
7D
4.9%
1Y
33.3%
Narrative Update • Apr 26

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£1.57
Metro Bank Holdings
7D
8.4%
1Y
32.4%
Narrative Update • Apr 26

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.