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U.K. (FTSE) Banks Industry Analysis

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

The Banks industry is up 4.9% in the last week, with HSBC Holdings up 4.5%. This means that the industry has gained 46% over the past year. 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
Thu, 28 May 2026UK£468.3bUK£133.3bUK£39.2b8.7x12x3.5x
Sat, 25 Apr 2026UK£446.8bUK£131.2bUK£38.3b8.9x11.7x3.4x
Mon, 23 Mar 2026UK£394.2bUK£131.5bUK£38.5b8.5x10.2x3x
Wed, 18 Feb 2026UK£451.4bUK£126.9bUK£34.9b9.4x12.9x3.6x
Fri, 16 Jan 2026UK£449.8bUK£125.5bUK£33.8b9.5x13.3x3.6x
Sun, 14 Dec 2025UK£413.0bUK£125.5bUK£33.8b9.1x12.2x3.3x
Tue, 11 Nov 2025UK£401.9bUK£126.4bUK£34.0b8.6x11.8x3.2x
Thu, 09 Oct 2025UK£380.8bUK£121.9bUK£34.5b9x11x3.1x
Sat, 06 Sep 2025UK£350.1bUK£121.7bUK£34.4b8.4x10.2x2.9x
Mon, 04 Aug 2025UK£341.1bUK£122.4bUK£34.5b9.2x9.9x2.8x
Wed, 02 Jul 2025UK£329.7bUK£120.2bUK£34.1b8.5x9.7x2.7x
Fri, 30 May 2025UK£326.6bUK£121.2bUK£34.5b8.2x9.5x2.7x
Sun, 27 Apr 2025UK£308.6bUK£122.8bUK£36.4b7.9x8.5x2.5x
Tue, 25 Mar 2025UK£323.6bUK£124.3bUK£36.8b8.2x8.8x2.6x
Thu, 20 Feb 2025UK£314.8bUK£124.0bUK£38.0b6.2x8.3x2.5x
Sat, 18 Jan 2025UK£291.2bUK£125.0bUK£37.6b4.7x7.7x2.3x
Mon, 16 Dec 2024UK£273.7bUK£122.8bUK£36.8b5x7.4x2.2x
Wed, 13 Nov 2024UK£258.3bUK£122.0bUK£36.5b4.9x7.1x2.1x
Fri, 11 Oct 2024UK£215.7bUK£96.1bUK£30.4b6x7.1x2.2x
Sun, 08 Sep 2024UK£210.1bUK£97.5bUK£30.6b6x6.9x2.2x
Tue, 06 Aug 2024UK£204.0bUK£99.0bUK£31.1b5.9x6.6x2.1x
Thu, 04 Jul 2024UK£217.1bUK£97.0bUK£31.4b6x6.9x2.2x
Sat, 01 Jun 2024UK£222.6bUK£97.2bUK£31.4b6.3x7.1x2.3x
Mon, 29 Apr 2024UK£213.8bUK£97.8bUK£31.8b6x6.7x2.2x
Wed, 27 Mar 2024UK£230.9bUK£121.3bUK£36.6b5.3x6.3x1.9x
Fri, 23 Feb 2024UK£212.5bUK£122.8bUK£37.0b5.8x5.7x1.7x
Sun, 21 Jan 2024UK£186.6bUK£109.5bUK£37.5b5.1x5x1.7x
Tue, 19 Dec 2023UK£198.2bUK£109.7bUK£37.6b5.4x5.3x1.8x
Thu, 16 Nov 2023UK£191.2bUK£110.4bUK£37.9b5.3x5x1.7x
Sat, 14 Oct 2023UK£209.6bUK£105.2bUK£34.9b5x6x2x
Mon, 11 Sep 2023UK£192.0bUK£103.6bUK£34.4b5.2x5.6x1.9x
Wed, 09 Aug 2023UK£206.7bUK£101.9bUK£33.7b5.2x6.1x2x
Fri, 07 Jul 2023UK£221.8bUK£120.1bUK£37.7b5.1x5.9x1.8x
Sun, 04 Jun 2023UK£227.5bUK£125.0bUK£38.1b5.7x6x1.8x
Price to Earnings Ratio

6x


Total Market Cap: UK£227.5bTotal Earnings: UK£38.1bTotal Revenue: UK£125.0bTotal 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£14.043.2%
+UK£7.5b		62.2%PB1.6x
BARC BarclaysUK£4.563.6%
+UK£2.1b		40.8%PB0.8x
STAN Standard CharteredUK£19.883.1%
+UK£1.3b		74.3%PB1.1x
NWG NatWest GroupUK£6.002.8%
+UK£1.3b		15.4%PB1.1x
LLOY Lloyds Banking GroupUK£1.022.1%
+UK£1.2b		33.1%PB1.2x

Latest News

SHAW
UK£3.13
Shawbrook Group
7D
-0.8%
1Y
n/a
LLOY
UK£1.02
Lloyds Banking Group
7D
2.1%
1Y
33.1%
STB
UK£12.98
Secure Trust Bank
7D
3.2%
1Y
76.8%
Narrative Update • May 23

STB: Dividend And Buyback Plans Will Support Stronger Future Share Price

Analysts have kept their fair value estimate for Secure Trust Bank steady at £21.00, while making only minor adjustments to underlying assumptions such as the discount rate and future P/E. This suggests their overall price target rationale is broadly unchanged.
STAN
UK£19.88
Standard Chartered
7D
3.1%
1Y
74.3%
ARBB
UK£8.28
Arbuthnot Banking Group
7D
-1.5%
1Y
-14.0%
HSBK
US$31.00
Halyk Bank of Kazakhstan
7D
-1.4%
1Y
35.4%
NWG
UK£6.00
NatWest Group
7D
2.8%
1Y
15.4%
HSBA
UK£14.04
HSBC Holdings
7D
3.2%
1Y
62.2%
BARC
UK£4.56
Barclays
7D
3.6%
1Y
40.8%
BGEO
UK£110.10
Lion Finance Group
7D
-0.09%
1Y
68.2%
Narrative Update • May 16

BGEO: Index Inclusion And Capital Returns Will Support Higher Future Valuation Multiple

Analysts have lifted their price target on Lion Finance Group to £13,100 from £10,700, citing updated assumptions on discount rates, revenue growth, profit margins and future P/E multiples. Analyst Commentary Recent Street research on Lion Finance Group points to a more optimistic stance on the stock, with bullish analysts revisiting their assumptions on discount rates, revenue, margins and future P/E multiples.
TBCG
UK£44.92
TBC Bank Group
7D
-0.3%
1Y
0.8%
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£4.54
Close Brothers Group
7D
-1.3%
1Y
36.2%
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
5.1%
1Y
34.7%
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.