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U.K. (FTSE) Banks Industry Analysis

UpdatedAug 19, 2025
DataAggregated Company Financials
Companies12
  • 7D-0.4%
  • 3M7.7%
  • 1Y48.7%
  • YTD30.5%

The Banks industry has stayed flat over the last week. As for the the longer term, the industry is up 49% over the past 12 months. Earnings are forecast to grow by 8.3% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Wed, 17 May 2023UK£226.6bUK£124.0bUK£37.9b5.3x6x1.8x
Fri, 14 Apr 2023UK£223.3bUK£114.9bUK£30.3b6.3x7.4x1.9x
Sun, 12 Mar 2023UK£234.0bUK£117.5bUK£31.5b5x7.4x2x
Tue, 07 Feb 2023UK£212.3bUK£88.4bUK£21.8b7.3x9.7x2.4x
Thu, 05 Jan 2023UK£195.6bUK£88.1bUK£21.7b6.9x9x2.2x
Sat, 03 Dec 2022UK£184.5bUK£87.6bUK£21.7b6.6x8.5x2.1x
Mon, 31 Oct 2022UK£162.0bUK£90.6bUK£22.1b5.6x7.3x1.8x
Wed, 28 Sep 2022UK£177.3bUK£96.4bUK£24.9b5.9x7.1x1.8x
Fri, 26 Aug 2022UK£188.2bUK£91.1bUK£23.6b6.3x8x2.1x
Price to Earnings Ratio

8x


Total Market Cap: UK£188.2bTotal Earnings: UK£23.6bTotal Revenue: UK£91.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 7.8x202320242025
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 10.3x which is higher than its 3-year average PE of 7.8x.
  • The 3-year average PS ratio of 2.3x is lower than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 13% 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 Market1.11%
Financials-0.89%
Banks-0.40%
Regional Banks10.09%
Diversified Banks-0.42%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 7.7x.
    • Analysts are expecting annual earnings growth of 8.3%, which is higher than its past year's earnings growth of 0.9% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 18.0x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 28% over the next 5 years.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 8.3% 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
NWG NatWest GroupUK£5.471.9%
+UK£799.4m		57.5%PB1.1x
HSBK Halyk Bank of KazakhstanUS$26.652.7%
+US$190.0m		44.1%PB1.2x
MTRO Metro Bank HoldingsUK£1.2615.8%
+UK£115.8m		122.5%PB0.6x
STB Secure Trust BankUK£11.554.1%
+UK£8.6m		32.8%PB0.6x

Latest News

CBG
UK£4.99
Close Brothers Group
7D
-8.0%
1Y
1.3%

Divestment And Tech Upgrade Will Improve Capital And Efficiency, But Regulatory Challenges Lie Ahead

Close Brothers Group’s higher consensus price target reflects improved profitability, as net profit margin increased from 12.95% to 14.22%, while a modestly lower future P/E suggests enhanced value, resulting in a new fair value of £4.93. Valuation Changes Summary of Valuation Changes for Close Brothers Group The Consensus Analyst Price Target has risen from £4.63 to £4.93.
STB
UK£11.50
Secure Trust Bank
7D
3.6%
1Y
34.0%

Secure Trust Bank (LON:STB) Will Pay A Dividend Of £0.118

Aug 17
Secure Trust Bank (LON:STB) Will Pay A Dividend Of £0.118
BGEO
UK£77.15
Lion Finance Group
7D
-3.6%
1Y
76.3%

Ameriabank Acquisition Will Expand Digital Banking In Georgia And Armenia, Reducing Costs And Improving Customer Engagement

The upward revision in Lion Finance Group’s price target is primarily supported by a substantial reduction in its future P/E ratio, signaling improved valuation metrics despite stable revenue growth forecasts, resulting in the consensus target increasing from £79.13 to £84.85. What's in the News Lion Finance Group confirmed participation in the bidding process for acquiring HSBC Bank Malta operations, with no certainty of an agreement.
TBCG
UK£45.00
TBC Bank Group
7D
-5.6%
1Y
47.1%
STAN
UK£13.40
Standard Chartered
7D
-3.9%
1Y
75.9%
MTRO
UK£1.20
Metro Bank Holdings
7D
10.1%
1Y
117.8%
HSBK
US$26.70
Halyk Bank of Kazakhstan
7D
5.5%
1Y
43.5%
LLOY
UK£0.83
Lloyds Banking Group
7D
0.7%
1Y
40.1%
HSBA
UK£9.40
HSBC Holdings
7D
-1.0%
1Y
41.6%
BARC
UK£3.71
Barclays
7D
0.05%
1Y
62.1%
ARBB
UK£10.15
Arbuthnot Banking Group
7D
-0.7%
1Y
7.4%
NWG
UK£5.47
NatWest Group
7D
2.6%
1Y
55.4%

NatWest Group (LON:NWG) Has Announced A Dividend Of £0.095

Jul 28
NatWest Group (LON:NWG) Has Announced A Dividend Of £0.095