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U.K. (FTSE) Banks Industry Analysis

UpdatedJun 11, 2026
DataAggregated Company Financials
Companies13
  • 7D-5.4%
  • 3M7.5%
  • 1Y39.3%
  • YTD1.2%

Over the last 7 days, the Banks industry has dropped 5.8%, driven by a pullback from HSBC Holdings of 7.1%. This takes the industry's 12 month performance to a gain of 41%. 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
Thu, 11 Jun 2026UK£443.2bUK£133.6bUK£39.2b8.5x11.3x3.3x
Sat, 09 May 2026UK£451.0bUK£132.6bUK£39.0b8.7x11.6x3.4x
Mon, 06 Apr 2026UK£431.5bUK£132.8bUK£38.7b8.7x11.1x3.3x
Wed, 04 Mar 2026UK£435.4bUK£131.9bUK£38.5b8.6x11.3x3.3x
Fri, 30 Jan 2026UK£459.2bUK£123.8bUK£33.4b10.1x13.8x3.7x
Sun, 28 Dec 2025UK£434.5bUK£125.0bUK£33.7b9.3x12.9x3.5x
Tue, 25 Nov 2025UK£385.8bUK£126.8bUK£34.1b8.3x11.3x3x
Thu, 23 Oct 2025UK£363.0bUK£122.1bUK£34.6b8.8x10.5x3x
Sat, 20 Sep 2025UK£367.3bUK£121.8bUK£34.5b8.5x10.7x3x
Mon, 18 Aug 2025UK£352.3bUK£121.2bUK£34.2b9x10.3x2.9x
Wed, 16 Jul 2025UK£337.8bUK£121.6bUK£34.6b8.6x9.8x2.8x
Fri, 13 Jun 2025UK£325.9bUK£120.8bUK£34.3b8.1x9.5x2.7x
Sun, 11 May 2025UK£313.7bUK£121.6bUK£34.6b7.8x9.1x2.6x
Tue, 08 Apr 2025UK£271.4bUK£125.7bUK£37.4b6.5x7.3x2.2x
Thu, 06 Mar 2025UK£331.8bUK£124.6bUK£37.1b7.5x8.9x2.7x
Sat, 01 Feb 2025UK£300.5bUK£123.6bUK£37.1b5.3x8.1x2.4x
Mon, 30 Dec 2024UK£274.3bUK£123.0bUK£36.9b4.8x7.4x2.2x
Wed, 27 Nov 2024UK£264.9bUK£123.3bUK£37.1b4.9x7.1x2.1x
Fri, 25 Oct 2024UK£253.5bUK£120.2bUK£34.7b6.1x7.3x2.1x
Sun, 22 Sep 2024UK£213.9bUK£96.6bUK£30.3b6.7x7.1x2.2x
Tue, 20 Aug 2024UK£218.3bUK£98.0bUK£30.8b6.1x7.1x2.2x
Thu, 18 Jul 2024UK£216.6bUK£96.0bUK£31.0b6.1x7x2.3x
Sat, 15 Jun 2024UK£213.9bUK£97.5bUK£31.6b5.9x6.8x2.2x
Mon, 13 May 2024UK£224.0bUK£98.3bUK£31.7b6x7.1x2.3x
Wed, 10 Apr 2024UK£236.4bUK£121.1bUK£36.5b5.4x6.5x2x
Fri, 08 Mar 2024UK£220.0bUK£120.2bUK£36.2b6.3x6.1x1.8x
Sun, 04 Feb 2024UK£193.4bUK£109.7bUK£37.6b5.3x5.1x1.8x
Tue, 02 Jan 2024UK£203.0bUK£109.3bUK£37.4b5x5.4x1.9x
Thu, 30 Nov 2023UK£191.6bUK£109.5bUK£37.5b5.3x5.1x1.7x
Sat, 28 Oct 2023UK£183.2bUK£106.8bUK£35.6b4.7x5.1x1.7x
Mon, 25 Sep 2023UK£208.9bUK£104.7bUK£34.7b5.4x6x2x
Wed, 23 Aug 2023UK£193.1bUK£102.1bUK£33.8b5.2x5.7x1.9x
Fri, 21 Jul 2023UK£239.1bUK£119.5bUK£37.5b5.3x6.4x2x
Sun, 18 Jun 2023UK£228.0bUK£120.3bUK£37.5b5.6x6.1x1.9x
Price to Earnings Ratio

6.1x


Total Market Cap: UK£228.0bTotal Earnings: UK£37.5bTotal Revenue: UK£120.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.3x202420252026
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 11.4x which is higher than its 3-year average PE of 8.3x.
  • The 3-year average PS ratio of 2.5x 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 3.5% 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 Market-1.01%
Financials-3.42%
Banks-5.37%
Regional Banks0.62%
Diversified Banks-5.40%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.3x.
    • 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 21.1x.
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
HSBK Halyk Bank of KazakhstanUS$31.301.1%
+US$95.3m		38.5%PB1.1x
SHAW Shawbrook GroupUK£3.064.4%
+UK£67.6m		n/aPB0.9x
ARBB Arbuthnot Banking GroupUK£8.351.2%
+UK£1.6m		-12.1%PB0.5x

Latest News

LLOY
UK£0.97
Lloyds Banking Group
7D
-1.7%
1Y
27.8%
STAN
UK£17.91
Standard Chartered
7D
-11.0%
1Y
54.2%
BARC
UK£4.46
Barclays
7D
-3.0%
1Y
38.0%
BGEO
UK£103.70
Lion Finance Group
7D
-3.0%
1Y
54.2%
NWG
UK£5.86
NatWest Group
7D
-0.6%
1Y
14.0%
Narrative Update • Jun 06

NWG: Evelyn Deal And Buybacks Will Support Future Re Rating

Analysts have inched up their blended NatWest Group price target to roughly £7.38 from about £7.33, reflecting a slightly higher fair value estimate and updated assumptions on discount rate, revenue growth, profit margins and future P/E after a mix of recent target hikes and cuts across the Street. Analyst Commentary Bullish Takeaways Bullish analysts point to recent price target increases, including the 30 GBp move from JPMorgan and a separate 110 GBp hike, as support for a higher valuation range if NatWest executes on current plans.
HSBA
UK£12.93
HSBC Holdings
7D
-7.1%
1Y
48.0%
Narrative Update • Jun 05

HSBA: Future Returns Will Hinge On Conviction Status And AI Cost Cuts

Analysts have lifted the HSBC Holdings price target to £14.20 from £13.67. This reflects updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E, alongside recent supportive research that includes price target increases and the stock being added to a European conviction list.
TBCG
UK£42.32
TBC Bank Group
7D
-2.9%
1Y
-6.2%
Narrative Update • Jun 05

TBCG: Dividend Commitment And New Finance Leadership Will Support Future Upside

Analysts have nudged their fair value estimate for TBC Bank Group slightly higher from £54.78 to £55.00, reflecting small adjustments to the discount rate and future P/E assumptions, while keeping revenue growth and profit margin expectations broadly in line with prior views. What's in the News TBC Bank Group plans to pay a first quarter 2026 dividend of GEL 1.75 per share, with the dividend paid in £ to shareholders on the register as of 14 August 2026, and a scheduled payment date of 11 September 2026.
HSBK
US$31.30
Halyk Bank of Kazakhstan
7D
1.1%
1Y
38.5%
Narrative Update • Jun 05

HSBK: Governance Changes And Higher P/E Will Shape Balanced Outlook

Analysts have held their $31.90 price target for Halyk Bank of Kazakhstan. They explained the unchanged view by pointing to updated assumptions that pair a slightly higher discount rate and revenue growth outlook with lower profit margin expectations and a higher future P/E of 4.87x.
MTRO
UK£1.60
Metro Bank Holdings
7D
-4.5%
1Y
42.7%
Narrative Update • Jun 04

MTRO: Updated Street Views Will Shape A More Balanced Future Profile

Analysts have lifted their price target on Metro Bank Holdings to £1.55 from £1.45, with the change supported by recent Street research that raised a key price target to £1.95 from £1.70 and updated assumptions on discount rate, revenue growth, profit margin and future P/E. What's in the News Analysts raised their price target on Metro Bank Holdings to £1.55 from £1.45, reflecting updated Street research inputs.
SHAW
UK£3.06
Shawbrook Group
7D
4.4%
1Y
n/a
ARBB
UK£8.35
Arbuthnot Banking Group
7D
1.2%
1Y
-12.1%