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

U.K. (FTSE) Banks Industry Analysis

UpdatedMay 22, 2026
DataAggregated Company Financials
Companies13
  • 7D1.0%
  • 3M0.8%
  • 1Y41.9%
  • YTD4.4%

The Banks industry has been flat over the last week, but Halyk Bank of Kazakhstan has lost 5.6%. As for the the longer term, the industry is up 42% over the past 12 months. As for the next few years, earnings are expected to grow by 9.8% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 22 May 2026UK£457.8bUK£133.4bUK£39.2b8.6x11.7x3.4x
Sun, 19 Apr 2026UK£469.4bUK£131.2bUK£38.3b9.6x12.3x3.6x
Tue, 17 Mar 2026UK£409.0bUK£132.5bUK£38.6b8.7x10.6x3.1x
Thu, 12 Feb 2026UK£459.5bUK£126.0bUK£34.5b9.7x13.3x3.6x
Sat, 10 Jan 2026UK£440.8bUK£125.4bUK£33.8b10x13x3.5x
Mon, 08 Dec 2025UK£402.1bUK£125.8bUK£33.9b9.2x11.9x3.2x
Wed, 05 Nov 2025UK£393.0bUK£126.9bUK£34.1b8.5x11.5x3.1x
Fri, 03 Oct 2025UK£372.1bUK£121.6bUK£34.4b8.8x10.8x3.1x
Sun, 31 Aug 2025UK£348.6bUK£121.6bUK£34.4b8.5x10.1x2.9x
Tue, 29 Jul 2025UK£350.5bUK£121.9bUK£34.8b9.7x10.1x2.9x
Thu, 26 Jun 2025UK£328.5bUK£120.4bUK£34.2b8.3x9.6x2.7x
Sat, 24 May 2025UK£326.9bUK£121.0bUK£34.4b8.2x9.5x2.7x
Mon, 21 Apr 2025UK£293.5bUK£122.9bUK£36.4b7.4x8.1x2.4x
Wed, 19 Mar 2025UK£323.1bUK£123.9bUK£36.7b8.2x8.8x2.6x
Fri, 14 Feb 2025UK£308.0bUK£123.7bUK£37.2b6x8.3x2.5x
Sun, 12 Jan 2025UK£274.7bUK£124.8bUK£37.6b4.7x7.3x2.2x
Tue, 10 Dec 2024UK£271.0bUK£122.1bUK£36.6b4.9x7.4x2.2x
Thu, 07 Nov 2024UK£265.0bUK£121.3bUK£36.3b4.9x7.3x2.2x
Sat, 05 Oct 2024UK£217.9bUK£95.9bUK£30.3b6x7.2x2.3x
Mon, 02 Sep 2024UK£217.8bUK£97.5bUK£30.6b6.2x7.1x2.2x
Wed, 31 Jul 2024UK£222.9bUK£97.1bUK£31.3b6.7x7.1x2.3x
Fri, 28 Jun 2024UK£217.6bUK£97.6bUK£31.6b5.9x6.9x2.2x
Sun, 26 May 2024UK£221.3bUK£97.3bUK£31.3b6.1x7.1x2.3x
Tue, 23 Apr 2024UK£233.8bUK£122.6bUK£37.0b5.4x6.3x1.9x
Thu, 21 Mar 2024UK£222.7bUK£120.6bUK£36.3b6.2x6.1x1.8x
Sat, 17 Feb 2024UK£194.4bUK£107.2bUK£36.9b5.3x5.3x1.8x
Mon, 15 Jan 2024UK£194.1bUK£109.2bUK£37.4b5.4x5.2x1.8x
Wed, 13 Dec 2023UK£194.3bUK£110.2bUK£37.7b5.4x5.1x1.8x
Fri, 10 Nov 2023UK£190.2bUK£111.1bUK£38.1b5.2x5x1.7x
Sun, 08 Oct 2023UK£207.5bUK£104.6bUK£34.7b5x6x2x
Tue, 05 Sep 2023UK£194.4bUK£102.8bUK£34.1b5.3x5.7x1.9x
Thu, 03 Aug 2023UK£206.9bUK£97.2bUK£32.6b5.2x6.3x2.1x
Sat, 01 Jul 2023UK£227.1bUK£120.2bUK£37.7b5.3x6x1.9x
Mon, 29 May 2023UK£229.2bUK£125.2bUK£38.1b5.6x6x1.8x
Price to Earnings Ratio

6x


Total Market Cap: UK£229.2bTotal Earnings: UK£38.1bTotal Revenue: UK£125.2bTotal 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 11.7x which is higher than its 3-year average PE of 8.2x.
  • The 3-year average PS ratio of 2.4x 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 2.1% 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 Market0.25%
Financials1.17%
Banks0.97%
Regional Banks2.04%
Diversified Banks0.97%
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 (9.8%) 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 20.8x.
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 9.8% 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£13.743.8%
+UK£8.6b		58.2%PB1.6x
LLOY Lloyds Banking GroupUK£1.005.9%
+UK£3.2b		28.0%PB1.2x
BARC BarclaysUK£4.465.3%
+UK£3.0b		37.9%PB0.8x
NWG NatWest GroupUK£5.844.1%
+UK£1.8b		11.7%PB1.1x
STAN Standard CharteredUK£19.463.0%
+UK£1.2b		69.1%PB1.1x

Latest News

STAN
UK£19.46
Standard Chartered
7D
3.0%
1Y
69.1%
HSBK
US$31.15
Halyk Bank of Kazakhstan
7D
-2.5%
1Y
28.5%
NWG
UK£5.84
NatWest Group
7D
4.1%
1Y
11.7%
HSBA
UK£13.74
HSBC Holdings
7D
3.8%
1Y
58.2%
LLOY
UK£1.00
Lloyds Banking Group
7D
5.9%
1Y
28.0%
BARC
UK£4.46
Barclays
7D
5.3%
1Y
37.9%
BGEO
UK£106.40
Lion Finance Group
7D
-1.8%
1Y
59.2%
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£43.84
TBC Bank Group
7D
-4.2%
1Y
-4.3%
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.
SHAW
UK£3.05
Shawbrook Group
7D
1.3%
1Y
n/a
CBG
UK£4.64
Close Brothers Group
7D
5.1%
1Y
38.8%
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£1.53
Metro Bank Holdings
7D
5.8%
1Y
30.2%
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.