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U.K. (FTSE) Banks Industry Analysis

UpdatedJun 12, 2026
DataAggregated Company Financials
Companies13
  • 7D-3.2%
  • 3M10.8%
  • 1Y41.1%
  • YTD2.9%

Over the last 7 days, the Banks industry has dropped 3.2%, driven by HSBC Holdings declining 3.3%. In the past year, the industry has gained 41%. 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
Fri, 12 Jun 2026UK£450.6bUK£133.4bUK£39.2b8.5x11.5x3.4x
Sun, 10 May 2026UK£451.0bUK£132.6bUK£39.0b8.7x11.6x3.4x
Tue, 07 Apr 2026UK£431.5bUK£132.8bUK£38.7b8.7x11.1x3.3x
Thu, 05 Mar 2026UK£443.9bUK£131.7bUK£38.5b8.7x11.5x3.4x
Sat, 31 Jan 2026UK£466.1bUK£124.1bUK£33.4b10.1x13.9x3.8x
Mon, 29 Dec 2025UK£434.5bUK£125.0bUK£33.7b9.3x12.9x3.5x
Wed, 26 Nov 2025UK£391.2bUK£126.4bUK£34.0b8.4x11.5x3.1x
Fri, 24 Oct 2025UK£365.0bUK£122.6bUK£34.5b8.9x10.6x3x
Sun, 21 Sep 2025UK£367.2bUK£121.8bUK£34.5b8.5x10.7x3x
Tue, 19 Aug 2025UK£353.7bUK£121.5bUK£34.3b9.1x10.3x2.9x
Thu, 17 Jul 2025UK£337.1bUK£121.5bUK£34.5b8.6x9.8x2.8x
Sat, 14 Jun 2025UK£323.0bUK£120.9bUK£34.4b8x9.4x2.7x
Mon, 12 May 2025UK£313.7bUK£121.6bUK£34.6b7.8x9.1x2.6x
Wed, 09 Apr 2025UK£275.0bUK£125.4bUK£37.3b6.8x7.4x2.2x
Fri, 07 Mar 2025UK£323.1bUK£124.5bUK£37.1b7.6x8.7x2.6x
Sun, 02 Feb 2025UK£300.5bUK£123.9bUK£37.2b5.3x8.1x2.4x
Tue, 31 Dec 2024UK£275.2bUK£123.3bUK£37.0b4.8x7.4x2.2x
Thu, 28 Nov 2024UK£264.7bUK£122.6bUK£36.8b4.9x7.2x2.2x
Sat, 26 Oct 2024UK£252.6bUK£120.4bUK£35.0b5.5x7.2x2.1x
Mon, 23 Sep 2024UK£213.8bUK£96.6bUK£30.3b6.7x7.1x2.2x
Wed, 21 Aug 2024UK£214.7bUK£97.9bUK£30.8b6.2x7x2.2x
Fri, 19 Jul 2024UK£216.8bUK£96.2bUK£31.1b6.2x7x2.3x
Sun, 16 Jun 2024UK£213.8bUK£97.5bUK£31.6b5.9x6.8x2.2x
Tue, 14 May 2024UK£224.7bUK£98.2bUK£31.6b6x7.1x2.3x
Thu, 11 Apr 2024UK£240.5bUK£121.8bUK£36.7b5.4x6.5x2x
Sat, 09 Mar 2024UK£217.6bUK£120.0bUK£36.2b6.2x6x1.8x
Mon, 05 Feb 2024UK£193.4bUK£109.7bUK£37.6b5.3x5.1x1.8x
Wed, 03 Jan 2024UK£202.0bUK£109.7bUK£37.6b5.1x5.4x1.8x
Fri, 01 Dec 2023UK£193.2bUK£109.7bUK£37.6b5.3x5.1x1.8x
Sun, 29 Oct 2023UK£189.4bUK£106.9bUK£35.5b4.7x5.3x1.8x
Tue, 26 Sep 2023UK£203.8bUK£104.8bUK£34.8b5.4x5.9x1.9x
Thu, 24 Aug 2023UK£194.0bUK£102.1bUK£33.8b5.2x5.7x1.9x
Sat, 22 Jul 2023UK£236.5bUK£119.6bUK£37.5b5.3x6.3x2x
Mon, 19 Jun 2023UK£227.8bUK£119.8bUK£37.6b5.6x6.1x1.9x
Price to Earnings Ratio

6.1x


Total Market Cap: UK£227.8bTotal Earnings: UK£37.6bTotal Revenue: UK£119.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.3x202420252026
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 11.5x which is higher than its 3-year average PE of 8.3x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.4x.
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 3.6% 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 Market-0.78%
Financials-2.28%
Banks-3.17%
Regional Banks-1.10%
Diversified Banks-3.18%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.3x.
    • 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 21.1x.
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 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
HSBK Halyk Bank of KazakhstanUS$31.351.1%
+US$95.3m		36.0%PB1.1x
SHAW Shawbrook GroupUK£3.060.2%
+UK£2.6m		n/aPB0.9x

Latest News

HSBA
UK£13.73
HSBC Holdings
7D
0.9%
1Y
58.4%
LLOY
UK£1.02
Lloyds Banking Group
7D
3.2%
1Y
33.8%
Narrative Update • Jun 11

LLOY: Motor Finance Uncertainty And Buybacks Will Still Limit Future Upside

Analysts have adjusted their price target for Lloyds Banking Group slightly, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E. Investors should note that the move in the target, while modest in £ terms, is supported by these refreshed inputs.
BARC
UK£4.73
Barclays
7D
3.3%
1Y
48.1%
Narrative Update • Jun 10

BARC: Buyback And Fee Cuts Are Expected To Support Stronger Returns

Analysts have made a small adjustment to their £5.39 price target for Barclays, reflecting fine tuned assumptions around the bank’s discount rate, revenue growth, profit margin and future P/E that keep their overall valuation view broadly unchanged. What's in the News Barclays chief executive CS Venkatakrishnan has called for the UK to "fight" harder for foreign investment, arguing that Britain needs a clearer pitch to global investors and a regulatory and business environment that supports confidence.
STAN
UK£19.28
Standard Chartered
7D
-0.3%
1Y
68.3%
BGEO
UK£110.50
Lion Finance Group
7D
4.7%
1Y
67.3%
NWG
UK£6.14
NatWest Group
7D
3.4%
1Y
19.6%
Narrative Update • Jun 06

NWG: Evelyn Deal And Buybacks Will Support Future Re Rating

Analysts have inched up their blended NatWest Group price target to roughly £7.38 from about £7.33, reflecting a slightly higher fair value estimate and updated assumptions on discount rate, revenue growth, profit margins and future P/E after a mix of recent target hikes and cuts across the Street. Analyst Commentary Bullish Takeaways Bullish analysts point to recent price target increases, including the 30 GBp move from JPMorgan and a separate 110 GBp hike, as support for a higher valuation range if NatWest executes on current plans.
TBCG
UK£45.32
TBC Bank Group
7D
3.5%
1Y
1.3%
Narrative Update • Jun 05

TBCG: Dividend Commitment And New Finance Leadership Will Support Future Upside

Analysts have nudged their fair value estimate for TBC Bank Group slightly higher from £54.78 to £55.00, reflecting small adjustments to the discount rate and future P/E assumptions, while keeping revenue growth and profit margin expectations broadly in line with prior views. What's in the News TBC Bank Group plans to pay a first quarter 2026 dividend of GEL 1.75 per share, with the dividend paid in £ to shareholders on the register as of 14 August 2026, and a scheduled payment date of 11 September 2026.
HSBK
US$31.50
Halyk Bank of Kazakhstan
7D
2.1%
1Y
34.9%
Narrative Update • Jun 05

HSBK: Governance Changes And Higher P/E Will Shape Balanced Outlook

Analysts have held their $31.90 price target for Halyk Bank of Kazakhstan. They explained the unchanged view by pointing to updated assumptions that pair a slightly higher discount rate and revenue growth outlook with lower profit margin expectations and a higher future P/E of 4.87x.
CBG
UK£4.45
Close Brothers Group
7D
-1.8%
1Y
23.8%
Narrative Update • Jun 01

CBG: UBS Upgrade And Stable Margins Will Support Higher P/E

Analysts have nudged their price target on Close Brothers Group slightly higher, now implying a fair value of about £5.31 per share versus £5.29 previously. This reflects updated views on discount rates, long term revenue growth, profit margins and future P/E multiples following recent research such as the UBS upgrade.
SHAW
UK£3.18
Shawbrook Group
7D
3.9%
1Y
n/a
ARBB
UK£8.35
Arbuthnot Banking Group
7D
-0.6%
1Y
-12.3%