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U.K. (FTSE) Banks Industry Analysis

UpdatedJul 06, 2026
DataAggregated Company Financials
Companies13
  • 7D3.1%
  • 3M19.0%
  • 1Y57.0%
  • YTD15.8%

Over the last 7 days, the Banks industry has risen 3.1%, driven by gains from HSBC Holdings of 1.9%. This means that the industry has gained 57% over the past year. 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
Mon, 06 Jul 2026UK£506.3bUK£133.8bUK£39.3b9.7x12.9x3.8x
Wed, 03 Jun 2026UK£475.6bUK£133.1bUK£39.1b8.6x12.2x3.6x
Fri, 01 May 2026UK£456.4bUK£131.6bUK£38.6b9x11.8x3.5x
Sun, 29 Mar 2026UK£406.4bUK£132.2bUK£38.6b8.3x10.5x3.1x
Tue, 24 Feb 2026UK£456.2bUK£127.0bUK£34.9b9.2x13.1x3.6x
Thu, 22 Jan 2026UK£447.5bUK£125.3bUK£33.8b9.7x13.2x3.6x
Sat, 20 Dec 2025UK£432.6bUK£125.5bUK£33.8b9.3x12.8x3.4x
Mon, 17 Nov 2025UK£401.8bUK£126.4bUK£34.0b8.5x11.8x3.2x
Wed, 15 Oct 2025UK£365.3bUK£122.2bUK£34.6b8.8x10.6x3x
Fri, 12 Sep 2025UK£365.9bUK£121.4bUK£34.3b8.8x10.7x3x
Sun, 10 Aug 2025UK£351.2bUK£121.7bUK£34.4b8.7x10.2x2.9x
Tue, 08 Jul 2025UK£329.1bUK£120.7bUK£34.3b8.4x9.6x2.7x
Thu, 05 Jun 2025UK£326.5bUK£121.0bUK£34.4b8.2x9.5x2.7x
Sat, 03 May 2025UK£310.7bUK£121.2bUK£34.2b7.6x9.1x2.6x
Mon, 31 Mar 2025UK£321.4bUK£124.6bUK£37.0b7.9x8.7x2.6x
Wed, 26 Feb 2025UK£320.7bUK£125.7bUK£37.4b6.6x8.6x2.6x
Fri, 24 Jan 2025UK£297.6bUK£124.1bUK£37.3b5x8x2.4x
Sun, 22 Dec 2024UK£269.5bUK£123.0bUK£36.9b4.9x7.3x2.2x
Tue, 19 Nov 2024UK£266.1bUK£122.7bUK£36.8b5x7.2x2.2x
Thu, 17 Oct 2024UK£216.8bUK£96.5bUK£30.5b6.1x7.1x2.2x
Sat, 14 Sep 2024UK£213.6bUK£97.5bUK£30.7b5.9x7x2.2x
Mon, 12 Aug 2024UK£209.9bUK£99.0bUK£31.2b6.1x6.7x2.1x
Wed, 10 Jul 2024UK£215.2bUK£96.9bUK£31.3b6x6.9x2.2x
Fri, 07 Jun 2024UK£219.8bUK£97.0bUK£31.4b6.3x7x2.3x
Sun, 05 May 2024UK£222.6bUK£98.2bUK£31.6b5.7x7x2.3x
Tue, 02 Apr 2024UK£229.4bUK£121.4bUK£36.6b5.5x6.3x1.9x
Thu, 29 Feb 2024UK£219.1bUK£120.8bUK£36.5b6x6x1.8x
Sat, 27 Jan 2024UK£194.2bUK£109.4bUK£37.5b5.4x5.2x1.8x
Mon, 25 Dec 2023UK£200.9bUK£109.3bUK£37.4b5.2x5.4x1.8x
Wed, 22 Nov 2023UK£194.3bUK£110.0bUK£37.8b5.1x5.1x1.8x
Fri, 20 Oct 2023UK£205.6bUK£105.2bUK£34.9b5x5.9x2x
Sun, 17 Sep 2023UK£204.1bUK£104.0bUK£34.5b5.4x5.9x2x
Tue, 15 Aug 2023UK£204.5bUK£102.0bUK£33.8b5.4x6.1x2x
Thu, 13 Jul 2023UK£226.8bUK£118.9bUK£37.3b5.3x6.1x1.9x
Price to Earnings Ratio

6.1x


Total Market Cap: UK£226.8bTotal Earnings: UK£37.3bTotal Revenue: UK£118.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.4x202420252026
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 12.9x which is higher than its 3-year average PE of 8.4x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.8x.
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 4.0% 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 Market1.90%
Financials3.60%
Banks3.10%
Regional Banks4.47%
Diversified Banks3.09%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.4x.
    • 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 21.4x.
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 10.0% 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£14.511.9%
+UK£4.7b		62.4%PB1.7x
LLOY Lloyds Banking GroupUK£1.155.7%
+UK£3.6b		52.0%PB1.4x
BARC BarclaysUK£5.223.4%
+UK£2.3b		56.2%PB0.9x
NWG NatWest GroupUK£6.834.1%
+UK£2.1b		39.9%PB1.2x
STAN Standard CharteredUK£21.224.0%
+UK£1.8b		74.0%PB1.2x

Latest News

HSBK
US$30.40
Halyk Bank of Kazakhstan
7D
2.4%
1Y
20.9%
HSBA
UK£14.51
HSBC Holdings
7D
1.9%
1Y
62.4%
STAN
UK£21.22
Standard Chartered
7D
4.0%
1Y
74.0%
Narrative Update • Jul 02

STAN: Fair Value Thesis Will Test Upgrades Against Indonesia Exposure And Execution

The analyst price target for Standard Chartered has been revised higher to £21.71 from £21.08, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E as analysts factor in a series of recent upgrades and target increases across the Street. Analyst Commentary Recent Street research on Standard Chartered points to a cluster of target price upgrades and rating changes.
NWG
UK£6.83
NatWest Group
7D
4.1%
1Y
39.9%
BGEO
UK£117.50
Lion Finance Group
7D
5.8%
1Y
68.3%
LLOY
UK£1.15
Lloyds Banking Group
7D
5.7%
1Y
52.0%
BARC
UK£5.22
Barclays
7D
3.4%
1Y
56.2%
Narrative Update • Jun 25

BARC: Buyback And Youth Platform Acquisition Are Expected To Support Steady Returns

Analysts have nudged their fair value estimate for Barclays stock from £5.39 to £5.49, citing updated assumptions for revenue growth, profit margins, discount rate and future P/E that together support a slightly higher price target. What’s in the News for Barclays Barclays is under scrutiny over its previous dealings with Market Financial Solutions, after reportedly reducing exposure and blocking transactions when financial irregularities were identified, while some creditors question why other banks were not warned about concerns ahead of the lender’s collapse and £1.3b fraud allegations (source: recent investigative reporting).
SHAW
UK£3.39
Shawbrook Group
7D
6.1%
1Y
n/a
ARBB
UK£8.15
Arbuthnot Banking Group
7D
-0.6%
1Y
-13.8%