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U.K. (FTSE) Banks Industry Analysis

UpdatedJun 09, 2026
DataAggregated Company Financials
Companies13
  • 7D-0.8%
  • 3M6.1%
  • 1Y43.1%
  • YTD5.7%

The Banks industry has stayed flat over the last week. As for the the longer term, the industry is up 43% over the past 12 months. 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
Tue, 09 Jun 2026UK£463.2bUK£133.8bUK£39.3b8.6x11.8x3.5x
Thu, 07 May 2026UK£456.9bUK£132.7bUK£39.1b8.6x11.7x3.4x
Sat, 04 Apr 2026UK£431.5bUK£132.8bUK£38.7b8.7x11.1x3.3x
Mon, 02 Mar 2026UK£472.1bUK£131.1bUK£38.3b8.8x12.3x3.6x
Wed, 28 Jan 2026UK£462.4bUK£123.8bUK£33.4b10.1x13.9x3.7x
Fri, 26 Dec 2025UK£443.0bUK£127.5bUK£34.6b8.9x12.8x3.5x
Sun, 23 Nov 2025UK£381.7bUK£126.7bUK£34.1b8.2x11.2x3x
Tue, 21 Oct 2025UK£354.5bUK£121.8bUK£34.5b8.3x10.3x2.9x
Thu, 18 Sep 2025UK£365.9bUK£121.1bUK£34.3b8.7x10.7x3x
Sat, 16 Aug 2025UK£352.5bUK£121.2bUK£34.2b9x10.3x2.9x
Mon, 14 Jul 2025UK£334.8bUK£121.1bUK£34.4b8.5x9.7x2.8x
Wed, 11 Jun 2025UK£324.5bUK£121.2bUK£34.5b8.1x9.4x2.7x
Fri, 09 May 2025UK£311.7bUK£121.9bUK£34.7b7.7x9x2.6x
Sun, 06 Apr 2025UK£277.8bUK£124.9bUK£37.1b6.7x7.5x2.2x
Tue, 04 Mar 2025UK£336.2bUK£125.4bUK£37.4b7.4x9x2.7x
Thu, 30 Jan 2025UK£298.7bUK£123.7bUK£37.2b5.4x8x2.4x
Sat, 28 Dec 2024UK£274.3bUK£123.0bUK£36.9b4.8x7.4x2.2x
Mon, 25 Nov 2024UK£263.2bUK£123.4bUK£37.1b4.9x7.1x2.1x
Wed, 23 Oct 2024UK£220.0bUK£96.5bUK£30.5b6x7.2x2.3x
Fri, 20 Sep 2024UK£216.6bUK£96.8bUK£30.4b5.8x7.1x2.2x
Sun, 18 Aug 2024UK£216.5bUK£98.2bUK£30.9b6x7x2.2x
Tue, 16 Jul 2024UK£215.4bUK£96.1bUK£31.1b6.1x6.9x2.2x
Thu, 13 Jun 2024UK£213.3bUK£96.9bUK£31.3b6.2x6.8x2.2x
Sat, 11 May 2024UK£224.1bUK£98.3bUK£31.7b6x7.1x2.3x
Mon, 08 Apr 2024UK£237.2bUK£121.3bUK£36.6b5.5x6.5x2x
Wed, 06 Mar 2024UK£222.5bUK£120.6bUK£36.4b6.2x6.1x1.8x
Fri, 02 Feb 2024UK£192.9bUK£109.2bUK£37.4b5.4x5.2x1.8x
Sun, 31 Dec 2023UK£202.9bUK£109.2bUK£37.4b5x5.4x1.9x
Tue, 28 Nov 2023UK£192.0bUK£109.9bUK£37.6b4.9x5.1x1.7x
Thu, 26 Oct 2023UK£198.1bUK£105.3bUK£34.9b4.8x5.7x1.9x
Sat, 23 Sep 2023UK£205.4bUK£104.6bUK£34.7b5.4x5.9x2x
Mon, 21 Aug 2023UK£194.7bUK£102.1bUK£33.8b5.2x5.8x1.9x
Wed, 19 Jul 2023UK£233.7bUK£118.7bUK£37.2b5.5x6.3x2x
Fri, 16 Jun 2023UK£225.5bUK£120.5bUK£37.6b5.5x6x1.9x
Price to Earnings Ratio

6x


Total Market Cap: UK£225.5bTotal Earnings: UK£37.6bTotal Revenue: UK£120.5bTotal 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 11.8x 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 3.5x.
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-0.021%
Financials-0.92%
Banks-0.82%
Diversified Banks-0.80%
Regional Banks-2.98%
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% 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£5.991.4%
+UK£668.3m		13.8%PB1.1x
BARC BarclaysUK£4.560.3%
+UK£162.6m		37.2%PB0.8x
SHAW Shawbrook GroupUK£3.081.8%
+UK£28.6m		n/aPB0.9x
ARBB Arbuthnot Banking GroupUK£8.401.8%
+UK£2.4m		-11.8%PB0.5x

Latest News

STAN
UK£19.33
Standard Chartered
7D
-3.8%
1Y
63.5%
LLOY
UK£0.99
Lloyds Banking Group
7D
-1.0%
1Y
28.7%
BARC
UK£4.56
Barclays
7D
0.3%
1Y
37.2%
BGEO
UK£103.40
Lion Finance Group
7D
-5.6%
1Y
48.9%
STB
UK£12.50
Secure Trust Bank
7D
-2.6%
1Y
64.0%
Narrative Update • Jun 06

STB: Higher Assumed Revenue And Multiple Will Drive Future Upside Potential

Analysts have raised their price target on Secure Trust Bank from £18 to £20, citing updated assumptions for revenue growth, profit margins and a higher future P/E multiple in their latest models. What's in the News Secure Trust Bank PLC plans for Chief Financial Officer Rachel Lawrence to retire during the first half of 2027 after a career of over 35 years, following her appointment as CFO in September 2020.
NWG
UK£5.99
NatWest Group
7D
1.4%
1Y
13.8%
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£13.71
HSBC Holdings
7D
-0.8%
1Y
54.7%
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£43.84
TBC Bank Group
7D
-0.9%
1Y
-3.1%
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$30.85
Halyk Bank of Kazakhstan
7D
-0.6%
1Y
36.8%
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£1.58
Metro Bank Holdings
7D
-9.4%
1Y
37.3%
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£3.08
Shawbrook Group
7D
1.8%
1Y
n/a
ARBB
UK£8.40
Arbuthnot Banking Group
7D
1.8%
1Y
-11.8%