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U.K. (FTSE) Banks Industry Analysis

UpdatedAug 09, 2026
DataAggregated Company Financials
Companies13
  • 7D-0.9%
  • 3M16.7%
  • 1Y52.0%
  • YTD19.9%

The Banks industry has stayed flat over the last week. As for the the longer term, the industry is up 52% over the past 12 months. Earnings are forecast to grow by 11% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 09 Aug 2026UK£525.0bUK£138.2bUK£40.3b9x13x3.8x
Tue, 07 Jul 2026UK£510.9bUK£133.6bUK£39.3b9.7x13x3.8x
Thu, 04 Jun 2026UK£468.4bUK£133.4bUK£39.2b8.4x12x3.5x
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
Price to Earnings Ratio

5.9x


Total Market Cap: UK£199.5bTotal Earnings: UK£33.7bTotal Revenue: UK£102.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.7x202420252026
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 13.0x which is higher than its 3-year average PE of 8.7x.
  • The 3-year average PS ratio of 2.6x is lower than the industry's current PS ratio of 3.8x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 6.1% per year over the last three years.
  • Revenues for these companies have grown 11% 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 Market0.89%
Financials0.032%
Banks-0.92%
Regional Banks0.24%
Diversified Banks-0.93%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.7x.
    • Analysts are expecting annual earnings growth of 10.6%, which is lower than the prior year's growth of 13.8% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 21.2x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings decline of 30% per year.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 11% 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
BARC BarclaysUK£5.161.4%
+UK£940.8m		40.2%PB0.9x
STAN Standard CharteredUK£22.191.4%
+UK£637.6m		59.9%PB1.2x
NWG NatWest GroupUK£7.120.9%
+UK£524.9m		36.3%PB1.3x
BGEO Lion Finance GroupUK£124.407.1%
+UK£351.3m		57.9%PB2.1x
HSBK Halyk Bank of KazakhstanUS$33.454.4%
+US$381.3m		32.7%PB1.1x

Latest News

SHAW
UK£3.34
Shawbrook Group
7D
1.7%
1Y
n/a
New Narrative • Aug 08

Specialist Lending And Technology Investment Will Reshape This U.K. Bank’s Long-Term Prospects

Catalysts About Shawbrook Group Shawbrook Group is a specialist U.K. lender focused on SMEs, real estate professionals and selected consumer segments, supported by a technology and data driven funding and underwriting platform. What are the underlying business or industry changes driving this perspective?
TBCG
UK£49.36
TBC Bank Group
7D
2.6%
1Y
2.6%
HSBA
UK£15.29
HSBC Holdings
7D
-3.0%
1Y
62.8%
LLOY
UK£1.15
Lloyds Banking Group
7D
0.4%
1Y
42.3%
Narrative Update • Aug 07

LLOY: Accelerate 2030 AI And Cost Cuts Will Shape Balanced Future Returns

Analysts have modestly increased their price target for Lloyds Banking Group to £1.20 from £1.16, citing updated assumptions for revenue growth, profit margins, and a slightly lower future P/E multiple. What’s in the News for Lloyds Banking Group Lloyds Banking Group has outlined its Accelerate 2030 plan, which targets around £2b in gross cost reductions by 2030 alongside steady income growth and higher returns, supported by about £3b of annual investment in simplifying and connecting banking services.
NWG
UK£7.12
NatWest Group
7D
0.9%
1Y
36.3%
Narrative Update • Aug 06

NWG: Structural Hedge Reinvestment And Capital Returns Will Shape Balanced Future Upside

NatWest Group's updated fair value estimate has moved higher to £7.78 per share from £7.61, reflecting analysts' upward revisions to price targets in the £7.35 to £8.60 range and support for the stock from recent rating upgrades and new Buy initiations. Analyst Commentary Recent research on NatWest Group shows a cluster of higher price targets and fresh Buy ratings that frame how analysts currently view the stock's valuation, earnings drivers and execution risks.
STAN
UK£22.19
Standard Chartered
7D
1.4%
1Y
59.9%
BARC
UK£5.16
Barclays
7D
1.4%
1Y
40.2%
Narrative Update • Aug 06

BARC: Higher Profitability And Capital Returns Will Drive Future Share Price

Analysts have lifted their Barclays price target to £6.55 from £6.30, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margins and future P/E expectations. What’s in the News for Barclays Barclays is involved in a High Court case brought by administrators of collapsed shadow bank Market Financial Solutions, who are seeking cash they say is owed to the business and held in Barclays accounts.
MTRO
UK£1.74
Metro Bank Holdings
7D
-1.8%
1Y
61.2%
HSBK
US$33.45
Halyk Bank of Kazakhstan
7D
4.4%
1Y
32.7%
BGEO
UK£124.40
Lion Finance Group
7D
7.1%
1Y
57.9%
Narrative Update • Jul 28

BGEO: Higher Rating And Ongoing Capital Returns Will Support Future Upside

Analysts have lifted the Lion Finance Group price target by £800, from £13,100 to £13,900. This change reflects updated views on fair value, discount rate, revenue growth and profit margin assumptions in their models.
ARBB
UK£8.33
Arbuthnot Banking Group
7D
-0.9%
1Y
-18.6%