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U.K. (FTSE) Banks Industry Analysis

UpdatedJul 02, 2026
DataAggregated Company Financials
Companies13
  • 7D1.8%
  • 3M16.6%
  • 1Y57.9%
  • YTD14.4%

NatWest Group is up 5.0%, leading the way for the Banks industry, which has gained 1.8%. This means that the industry has gained 58% over the past year. As for the next few years, earnings are expected to grow by 10% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 03 Jul 2026UK£500.2bUK£134.1bUK£39.4b9.8x12.7x3.7x
Sun, 31 May 2026UK£471.4bUK£133.1bUK£39.1b8.8x12.1x3.5x
Tue, 28 Apr 2026UK£447.1bUK£131.2bUK£38.3b8.9x11.7x3.4x
Thu, 26 Mar 2026UK£415.2bUK£131.8bUK£38.4b8.7x10.8x3.2x
Sat, 21 Feb 2026UK£457.3bUK£127.0bUK£34.9b9.4x13.1x3.6x
Mon, 19 Jan 2026UK£451.4bUK£125.5bUK£33.8b9.7x13.3x3.6x
Wed, 17 Dec 2025UK£417.0bUK£125.3bUK£33.7b9.2x12.4x3.3x
Fri, 14 Nov 2025UK£410.6bUK£126.1bUK£33.9b8.6x12.1x3.3x
Sun, 12 Oct 2025UK£363.2bUK£122.1bUK£34.6b8.6x10.5x3x
Tue, 09 Sep 2025UK£353.7bUK£121.5bUK£34.4b8.5x10.3x2.9x
Thu, 07 Aug 2025UK£349.8bUK£122.1bUK£34.5b8.8x10.1x2.9x
Sat, 05 Jul 2025UK£326.3bUK£120.5bUK£34.2b8.3x9.5x2.7x
Mon, 02 Jun 2025UK£325.9bUK£121.3bUK£34.5b8.3x9.4x2.7x
Wed, 30 Apr 2025UK£314.2bUK£120.0bUK£33.8b8x9.3x2.6x
Fri, 28 Mar 2025UK£325.5bUK£124.1bUK£37.0b8.2x8.8x2.6x
Sun, 23 Feb 2025UK£317.7bUK£125.8bUK£37.7b6.3x8.4x2.5x
Tue, 21 Jan 2025UK£292.2bUK£124.4bUK£37.4b4.8x7.8x2.3x
Thu, 19 Dec 2024UK£273.5bUK£122.4bUK£36.7b5x7.4x2.2x
Sat, 16 Nov 2024UK£263.4bUK£122.7bUK£36.8b4.9x7.2x2.1x
Mon, 14 Oct 2024UK£216.3bUK£96.1bUK£30.4b6x7.1x2.3x
Wed, 11 Sep 2024UK£209.9bUK£97.7bUK£30.7b5.9x6.8x2.1x
Fri, 09 Aug 2024UK£208.7bUK£99.1bUK£31.2b6.1x6.7x2.1x
Sun, 07 Jul 2024UK£216.7bUK£96.8bUK£31.3b6x6.9x2.2x
Tue, 04 Jun 2024UK£222.3bUK£96.9bUK£31.4b6.5x7.1x2.3x
Thu, 02 May 2024UK£220.2bUK£98.1bUK£31.7b6x7x2.2x
Sat, 30 Mar 2024UK£229.5bUK£121.4bUK£36.6b5.5x6.3x1.9x
Mon, 26 Feb 2024UK£214.6bUK£166.4bUK£92.5b5.8x2.3x1.3x
Wed, 24 Jan 2024UK£186.2bUK£109.6bUK£37.5b5.2x5x1.7x
Fri, 22 Dec 2023UK£196.2bUK£109.5bUK£37.5b5.2x5.2x1.8x
Sun, 19 Nov 2023UK£195.1bUK£110.3bUK£37.9b5.3x5.1x1.8x
Tue, 17 Oct 2023UK£209.7bUK£104.9bUK£34.8b5.1x6x2x
Thu, 14 Sep 2023UK£198.9bUK£103.5bUK£34.3b5.3x5.8x1.9x
Sat, 12 Aug 2023UK£205.4bUK£102.1bUK£33.8b5.5x6.1x2x
Mon, 10 Jul 2023UK£221.9bUK£119.6bUK£37.5b5.1x5.9x1.9x
Price to Earnings Ratio

5.9x


Total Market Cap: UK£221.9bTotal Earnings: UK£37.5bTotal Revenue: UK£119.6bTotal 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 12.7x 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 3.7x.
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 3.9% 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 Market0.24%
Financials2.31%
Banks1.85%
Regional Banks4.05%
Diversified Banks1.84%
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% 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
LLOY Lloyds Banking GroupUK£1.154.2%
+UK£2.7b		51.1%PB1.4x
NWG NatWest GroupUK£6.792.7%
+UK£1.4b		38.8%PB1.2x
STAN Standard CharteredUK£20.901.3%
+UK£587.1m		71.9%PB1.1x
BGEO Lion Finance GroupUK£114.303.9%
+UK£182.1m		62.9%PB1.9x
BARC BarclaysUK£5.220.2%
+UK£108.4m		57.1%PB0.9x

Latest News

HSBA
UK£14.45
HSBC Holdings
7D
-0.01%
1Y
63.3%
NWG
UK£6.79
NatWest Group
7D
2.7%
1Y
38.8%
CBG
UK£4.08
Close Brothers Group
7D
-8.9%
1Y
2.3%
BGEO
UK£114.30
Lion Finance Group
7D
3.9%
1Y
62.9%
STAN
UK£20.90
Standard Chartered
7D
1.3%
1Y
71.9%
LLOY
UK£1.15
Lloyds Banking Group
7D
4.2%
1Y
51.1%
BARC
UK£5.22
Barclays
7D
0.2%
1Y
57.1%
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).
HSBK
US$30.00
Halyk Bank of Kazakhstan
7D
1.0%
1Y
22.7%
Narrative Update • Jun 24

HSBK: Steady Governance Changes And P/E Assumptions Will Support Balanced Outlook

Analysts have kept their $31.90 price target for Halyk Bank of Kazakhstan steady, citing largely unchanged assumptions around fair value, discount rate, revenue growth, profit margin and future P/E, which together support a consistent view of the stock. What’s in the News for Halyk Bank of Kazakhstan JSC Halyk Bank shareholders approved amendments to the bank’s Charter at the Annual General Shareholders' Meeting held on April 23, 2026, according to the meeting resolution.
TBCG
UK£46.44
TBC Bank Group
7D
4.0%
1Y
-3.9%
Narrative Update • Jun 23

TBCG: Dividend Payouts Will Support Future Upside Potential

Analysts have kept their fair value estimate for TBC Bank Group broadly steady at about £55 per share, with a slightly lower assumed future P/E and minor tweaks to the discount rate and long term profitability assumptions informing the latest price target narrative. What's in the News for TBC Bank Group TBC Bank Group appointed Guy Stevens as Group Chief Financial Officer, effective July 13, 2026.
STB
UK£14.70
Secure Trust Bank
7D
6.5%
1Y
69.0%
Narrative Update • Jun 23

STB: Higher Assumed Profitability Will Drive Future Upside Potential

Analysts have modestly adjusted their fair value estimate for Secure Trust Bank to £20.00 per share. This reflects updated assumptions around revenue growth, profit margins and future P/E expectations.
SHAW
UK£3.40
Shawbrook Group
7D
-1.0%
1Y
n/a
ARBB
UK£8.25
Arbuthnot Banking Group
7D
-0.6%
1Y
-12.5%