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

U.K. (FTSE) Banks Industry Analysis

UpdatedAug 28, 2026
DataAggregated Company Financials
Companies13
  • 7D0.1%
  • 3M8.3%
  • 1Y45.9%
  • YTD16.5%

In the last week, Banks has been flat. As for the the longer term, the industry is up 46% 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
Fri, 28 Aug 2026UK£509.5bUK£137.8bUK£40.1b8.8x12.7x3.7x
Sun, 26 Jul 2026UK£523.3bUK£134.0bUK£39.4b9.8x13.3x3.9x
Tue, 23 Jun 2026UK£499.5bUK£134.2bUK£39.4b9.3x12.7x3.7x
Thu, 21 May 2026UK£459.1bUK£133.4bUK£39.2b8.6x11.7x3.4x
Sat, 18 Apr 2026UK£469.4bUK£131.2bUK£38.3b9.6x12.3x3.6x
Mon, 16 Mar 2026UK£409.0bUK£132.5bUK£38.6b8.7x10.6x3.1x
Wed, 11 Feb 2026UK£458.6bUK£125.1bUK£34.3b9.9x13.4x3.7x
Fri, 09 Jan 2026UK£441.2bUK£125.3bUK£33.8b10.2x13.1x3.5x
Sun, 07 Dec 2025UK£402.1bUK£125.8bUK£33.9b9.2x11.9x3.2x
Tue, 04 Nov 2025UK£392.4bUK£126.4bUK£34.0b8.6x11.5x3.1x
Thu, 02 Oct 2025UK£373.7bUK£121.5bUK£34.4b8.8x10.9x3.1x
Sat, 30 Aug 2025UK£348.7bUK£121.6bUK£34.4b8.5x10.1x2.9x
Mon, 28 Jul 2025UK£351.2bUK£121.5bUK£34.7b9.2x10.1x2.9x
Wed, 25 Jun 2025UK£329.0bUK£120.6bUK£34.3b8.4x9.6x2.7x
Fri, 23 May 2025UK£330.3bUK£121.6bUK£34.6b8.2x9.6x2.7x
Sun, 20 Apr 2025UK£293.6bUK£122.9bUK£36.4b7.4x8.1x2.4x
Tue, 18 Mar 2025UK£316.3bUK£124.0bUK£36.9b7.3x8.6x2.6x
Thu, 13 Feb 2025UK£312.1bUK£123.8bUK£37.2b6.2x8.4x2.5x
Sat, 11 Jan 2025UK£274.8bUK£124.8bUK£37.6b4.7x7.3x2.2x
Mon, 09 Dec 2024UK£268.8bUK£122.3bUK£36.7b4.9x7.3x2.2x
Wed, 06 Nov 2024UK£261.9bUK£120.6bUK£36.1b4.9x7.3x2.2x
Fri, 04 Oct 2024UK£214.1bUK£95.9bUK£30.3b6.1x7.1x2.2x
Sun, 01 Sep 2024UK£217.8bUK£97.5bUK£30.6b6.2x7.1x2.2x
Tue, 30 Jul 2024UK£221.8bUK£97.0bUK£31.3b6.6x7.1x2.3x
Thu, 27 Jun 2024UK£217.1bUK£97.7bUK£31.6b5.9x6.9x2.2x
Sat, 25 May 2024UK£221.4bUK£97.3bUK£31.3b6.1x7.1x2.3x
Mon, 22 Apr 2024UK£233.8bUK£122.6bUK£37.0b5.4x6.3x1.9x
Wed, 20 Mar 2024UK£221.4bUK£120.7bUK£36.3b6.4x6.1x1.8x
Fri, 16 Feb 2024UK£189.4bUK£107.3bUK£36.9b5.2x5.1x1.8x
Sun, 14 Jan 2024UK£194.1bUK£109.2bUK£37.4b5.4x5.2x1.8x
Tue, 12 Dec 2023UK£198.8bUK£110.1bUK£37.7b5.4x5.3x1.8x
Thu, 09 Nov 2023UK£190.2bUK£111.0bUK£38.1b5.2x5x1.7x
Sat, 07 Oct 2023UK£204.2bUK£104.5bUK£34.7b5x5.9x2x
Mon, 04 Sep 2023UK£195.3bUK£103.0bUK£34.2b5.3x5.7x1.9x
Price to Earnings Ratio

5.7x


Total Market Cap: UK£195.3bTotal Earnings: UK£34.2bTotal Revenue: UK£103.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.8x202420252026
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 12.7x which is higher than its 3-year average PE of 8.8x.
  • The 3-year average PS ratio of 2.6x is lower than the industry's current PS ratio of 3.7x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 5.5% per year over the last three years.
  • Revenues for these companies have grown 10% 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 Market0.65%
Financials0.83%
Banks0.10%
Regional Banks0.71%
Diversified Banks0.10%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.8x.
    • Analysts are expecting annual earnings growth of 10.6%, which is lower than the prior year's growth of 14.0% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 19.5x.
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 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£4.930.7%
+UK£402.4m		33.6%PB0.8x
BGEO Lion Finance GroupUK£133.604.6%
+UK£250.9m		80.2%PB2.2x
HSBA HSBC HoldingsUK£15.040.09%
+UK£187.4m		57.4%PB1.8x
TBCG TBC Bank GroupUK£50.155.9%
+UK£154.6m		13.0%PB1.5x
NWG NatWest GroupUK£6.780.1%
+UK£63.6m		26.4%PB1.2x

Latest News

LLOY
UK£1.09
Lloyds Banking Group
7D
-0.4%
1Y
32.8%
CBG
UK£4.13
Close Brothers Group
7D
-1.6%
1Y
-13.4%
BARC
UK£4.93
Barclays
7D
0.7%
1Y
33.6%
BGEO
UK£133.60
Lion Finance Group
7D
4.6%
1Y
80.2%
Narrative Update • Aug 26

BGEO: Higher Rating And Capital Returns Will Support Future Performance

Analysts have raised their fair value estimate for Lion Finance Group from £131.50 to £142.66. They attribute the change to a revised outlook that incorporates updated assumptions for the discount rate, revenue growth, profit margin and future P/E.
HSBA
UK£15.04
HSBC Holdings
7D
0.09%
1Y
57.4%
HSBK
US$33.80
Halyk Bank of Kazakhstan
7D
-3.8%
1Y
28.8%
ARBB
UK£8.10
Arbuthnot Banking Group
7D
-1.2%
1Y
-26.4%
STB
UK£14.68
Secure Trust Bank
7D
-4.7%
1Y
29.9%
STAN
UK£21.47
Standard Chartered
7D
-0.3%
1Y
56.1%
Narrative Update • Aug 13

STAN: Execution Risks Around Efficiency Gains Will Limit Future Upside

Standard Chartered's updated fair value estimate has moved from £13.86 to £18.48 as analysts adjust price targets higher into a £2,130 to £2,400 range, citing firmer revenue growth assumptions and slightly improved profit margins alongside only modest changes to P/E expectations. Analyst Commentary Recent Street research on Standard Chartered shows a mix of optimism and caution.
MTRO
UK£1.65
Metro Bank Holdings
7D
-3.0%
1Y
29.4%
Narrative Update • Aug 12

MTRO: Raised Price View Will Balance Fair Value And Earnings Multiple Risk

Metro Bank Holdings is the focus of a higher analyst price target, with one recent move taking the estimate to £1.95 from £1.70 as analysts point to updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E. What’s in the News for Metro Bank Holdings Analysts have raised a key price target for Metro Bank Holdings to £1.95, with the move linked to refreshed assumptions on fair value, discount rate, revenue growth, profit margin and future P/E.
SHAW
UK£3.23
Shawbrook Group
7D
3.4%
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£50.15
TBC Bank Group
7D
5.9%
1Y
13.0%
NWG
UK£6.78
NatWest Group
7D
0.1%
1Y
26.4%
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.