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U.K. (FTSE) Banks Industry Analysis

UpdatedApr 19, 2026
DataAggregated Company Financials
Companies13
  • 7D2.8%
  • 3M4.3%
  • 1Y63.8%
  • YTD6.7%

The Banks industry is up 2.8% in the last week, with HSBC Holdings up 1.9%. This takes the industry's 12 month performance to a gain of 64%. Looking forward, earnings are forecast to grow by 9.7% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 20 Apr 2026UK£469.4bUK£131.2bUK£38.3b9.6x12.3x3.6x
Wed, 18 Mar 2026UK£418.5bUK£132.0bUK£38.5b8.7x10.9x3.2x
Fri, 13 Feb 2026UK£446.7bUK£126.0bUK£34.6b9.4x12.9x3.5x
Sun, 11 Jan 2026UK£440.8bUK£125.4bUK£33.8b10x13x3.5x
Tue, 09 Dec 2025UK£403.7bUK£125.8bUK£33.9b9.2x11.9x3.2x
Thu, 06 Nov 2025UK£395.1bUK£126.8bUK£34.1b8.5x11.6x3.1x
Sat, 04 Oct 2025UK£378.4bUK£121.5bUK£34.4b9.1x11x3.1x
Mon, 01 Sep 2025UK£348.6bUK£121.6bUK£34.4b8.5x10.1x2.9x
Wed, 30 Jul 2025UK£355.6bUK£122.6bUK£35.2b9.6x10.1x2.9x
Fri, 27 Jun 2025UK£325.4bUK£120.2bUK£34.1b8.3x9.5x2.7x
Sun, 25 May 2025UK£326.8bUK£121.0bUK£34.4b8.2x9.5x2.7x
Tue, 22 Apr 2025UK£293.5bUK£122.9bUK£36.4b7.4x8.1x2.4x
Thu, 20 Mar 2025UK£325.5bUK£123.9bUK£36.7b8.2x8.9x2.6x
Sat, 15 Feb 2025UK£306.7bUK£123.7bUK£38.0b6.2x8.1x2.5x
Mon, 13 Jan 2025UK£274.5bUK£124.8bUK£37.6b4.7x7.3x2.2x
Wed, 11 Dec 2024UK£270.0bUK£122.2bUK£36.7b4.9x7.4x2.2x
Fri, 08 Nov 2024UK£262.0bUK£120.9bUK£36.1b4.9x7.2x2.2x
Sun, 06 Oct 2024UK£217.7bUK£95.9bUK£30.3b6x7.2x2.3x
Tue, 03 Sep 2024UK£216.9bUK£97.4bUK£30.6b6.2x7.1x2.2x
Thu, 01 Aug 2024UK£227.9bUK£97.1bUK£31.2b6.8x7.3x2.3x
Sat, 29 Jun 2024UK£215.5bUK£97.6bUK£31.6b6x6.8x2.2x
Mon, 27 May 2024UK£221.4bUK£97.3bUK£31.3b6.1x7.1x2.3x
Wed, 24 Apr 2024UK£240.6bUK£122.2bUK£36.9b5.5x6.5x2x
Fri, 22 Mar 2024UK£228.8bUK£121.2bUK£36.5b5.4x6.3x1.9x
Sun, 18 Feb 2024UK£194.4bUK£106.9bUK£36.8b5.3x5.3x1.8x
Tue, 16 Jan 2024UK£186.6bUK£109.3bUK£37.4b5.2x5x1.7x
Thu, 14 Dec 2023UK£194.0bUK£110.3bUK£37.8b5.4x5.1x1.8x
Sat, 11 Nov 2023UK£188.5bUK£111.5bUK£38.3b5.1x4.9x1.7x
Mon, 09 Oct 2023UK£207.5bUK£104.6bUK£34.7b5x6x2x
Wed, 06 Sep 2023UK£191.0bUK£103.0bUK£34.2b5.2x5.6x1.9x
Fri, 04 Aug 2023UK£207.7bUK£102.1bUK£33.8b5.2x6.1x2x
Sun, 02 Jul 2023UK£227.2bUK£120.2bUK£37.7b5.3x6x1.9x
Tue, 30 May 2023UK£229.2bUK£125.2bUK£38.1b5.6x6x1.8x
Thu, 27 Apr 2023UK£224.7bUK£115.1bUK£30.4b6.3x7.4x2x
Price to Earnings Ratio

7.4x


Total Market Cap: UK£224.7bTotal Earnings: UK£30.4bTotal Revenue: UK£115.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 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 12.3x which is higher than its 3-year average PE of 8.0x.
  • The 3-year average PS ratio of 2.4x is lower than the industry's current PS ratio of 3.6x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 7.9% per year over the last three years.
  • Revenues for these companies have grown 4.4% 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 Market1.05%
Financials3.51%
Banks2.84%
Regional Banks4.85%
Diversified Banks2.83%
Industry PE
  • Investors are most optimistic about the Regional Banks industry even though it's trading below its 3-year average PE ratio of 20.4x.
    • Analysts are expecting annual earnings growth of 27.8%, which is higher than its past year's earnings growth of 5.7% per year.
  • Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 8.0x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 28% 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 9.6% 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£13.651.9%
+UK£4.3b		73.0%PB1.6x
LLOY Lloyds Banking GroupUK£1.054.2%
+UK£2.5b		49.5%PB1.3x
STAN Standard CharteredUK£18.305.8%
+UK£2.1b		80.0%PB1x
BARC BarclaysUK£4.532.7%
+UK£1.6b		63.3%PB0.8x
NWG NatWest GroupUK£6.261.9%
+UK£924.7m		36.5%PB1.2x

Latest News

TBCG
UK£51.80
TBC Bank Group
7D
9.8%
1Y
21.0%
HSBA
UK£13.65
HSBC Holdings
7D
1.9%
1Y
73.0%

HSBA: Future Returns Will Depend On Conviction List Status And Cost Discipline

Analysts have raised HSBC Holdings' price targets by £170 to £290 per share in recent weeks, supported by updated models that show relatively stable fair value, discount rate, revenue growth, profit margin and future P/E assumptions. The stock has also been added to a key European conviction list.
NWG
UK£6.26
NatWest Group
7D
1.9%
1Y
36.5%

NWG: Evelyn Acquisition And Buybacks Will Support Future Share Upside

NatWest Group's updated analyst price target has inched higher to £7.32 from £7.31. This reflects a blend of recent target increases from several banks and more cautious expectations from others, as analysts factor in slightly different views on revenue growth, profitability and valuation multiples.
BGEO
UK£116.00
Lion Finance Group
7D
7.8%
1Y
115.6%

BGEO: Higher Rating And Capital Returns Will Support Future Balanced Outcomes

Analysts have lifted their price target for Lion Finance Group to £13,100 from £10,700, reflecting updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E. Analyst Commentary JPMorgan lifting its price target for Lion Finance Group to £13,100 from £10,700 signals a reassessment of what bullish analysts see as fair value, based on updated assumptions for growth, profitability and the appropriate discount rate.
BARC
UK£4.53
Barclays
7D
2.7%
1Y
63.3%

BARC: Evelyn Bid And Wealth Expansion Will Support Stronger Future Returns

Analysts have nudged their price target on Barclays slightly higher, from £5.30 to roughly £5.30, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E levels as support for the revised view. What's in the News Barclays and Sage agreed a new partnership aimed at helping UK small businesses manage day-to-day administration, improve visibility of their finances and keep up with Making Tax Digital requirements through combined banking and accounting tools (Client announcement).
LLOY
UK£1.05
Lloyds Banking Group
7D
4.2%
1Y
49.5%

LLOY: Buyback And Dividend Policy Will Support A More Attractive Return Profile

Analysts have lifted their price target for Lloyds Banking Group by around £0.02, reflecting small adjustments to fair value estimates, discount rate assumptions, revenue growth expectations, and a lower future P/E multiple in their models. What's in the News The Board of Lloyds Banking Group has authorized a share buyback plan, allowing the company to repurchase its own shares as part of a capital management program, subject to regulatory approval (Key Developments).
STAN
UK£18.30
Standard Chartered
7D
5.8%
1Y
80.0%

STAN: Future Returns Will Depend On Crypto Brokerage And Disciplined Capital Returns

The analyst price target for Standard Chartered has been trimmed by about £0.29 per share, reflecting updated fair value, discount rate and profitability assumptions as analysts balance slightly higher revenue growth and margin expectations against modestly lower valuation multiples. Analyst Commentary Recent Street research on Standard Chartered reflects a mix of optimism on the bank's earnings potential and some pushback on how much investors should be willing to pay for that growth.
HSBK
US$35.35
Halyk Bank of Kazakhstan
7D
7.8%
1Y
62.2%

HSBK: Higher Margins And Cautious Revenue Outlook Will Shape Fair View

Analysts have lifted their price target on Halyk Bank of Kazakhstan by $2, from $29.90 to $31.90, citing updated assumptions that include a different revenue growth outlook, higher profit margin expectations, and a slightly adjusted P/E multiple and discount rate. Valuation Changes Fair Value: Price target revised from $29.90 to $31.90, a modest uplift in the central valuation estimate.
ARBB
UK£8.63
Arbuthnot Banking Group
7D
-1.7%
1Y
-5.7%