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U.K. (FTSE) Banks Industry Analysis

UpdatedJun 07, 2026
DataAggregated Company Financials
Companies13
  • 7D-2.1%
  • 3M8.9%
  • 1Y42.8%
  • YTD5.3%

Over the last 7 days, the Banks industry has dropped 2.1%, driven by HSBC Holdings declining 2.4%. This takes the industry's 12 month performance to a gain of 43%. Earnings are forecast to grow by 10% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 07 Jun 2026UK£461.4bUK£133.8bUK£39.3b8.6x11.7x3.4x
Tue, 05 May 2026UK£456.3bUK£132.3bUK£39.0b8.8x11.7x3.4x
Thu, 02 Apr 2026UK£434.7bUK£132.2bUK£38.6b8.8x11.3x3.3x
Sat, 28 Feb 2026UK£470.1bUK£131.1bUK£38.3b8.8x12.3x3.6x
Mon, 26 Jan 2026UK£448.4bUK£124.4bUK£33.5b9.8x13.4x3.6x
Wed, 24 Dec 2025UK£443.8bUK£127.6bUK£34.7b9x12.8x3.5x
Fri, 21 Nov 2025UK£383.5bUK£126.8bUK£34.2b8.5x11.2x3x
Sun, 19 Oct 2025UK£352.2bUK£121.7bUK£34.5b8.2x10.2x2.9x
Tue, 16 Sep 2025UK£369.6bUK£121.2bUK£34.3b8.9x10.8x3x
Thu, 14 Aug 2025UK£358.5bUK£121.2bUK£34.2b9x10.5x3x
Sat, 12 Jul 2025UK£338.1bUK£120.8bUK£34.3b8.6x9.9x2.8x
Mon, 09 Jun 2025UK£330.0bUK£121.1bUK£34.4b8.4x9.6x2.7x
Wed, 07 May 2025UK£309.9bUK£121.3bUK£34.5b7.6x9x2.6x
Fri, 04 Apr 2025UK£297.0bUK£124.0bUK£36.8b7.3x8.1x2.4x
Sun, 02 Mar 2025UK£335.0bUK£126.0bUK£37.6b7.5x8.9x2.7x
Tue, 28 Jan 2025UK£293.2bUK£123.5bUK£37.1b5.2x7.9x2.4x
Thu, 26 Dec 2024UK£273.0bUK£123.2bUK£37.0b4.9x7.4x2.2x
Sat, 23 Nov 2024UK£263.2bUK£123.4bUK£37.1b4.9x7.1x2.1x
Mon, 21 Oct 2024UK£219.8bUK£96.3bUK£30.5b6.1x7.2x2.3x
Wed, 18 Sep 2024UK£215.0bUK£97.3bUK£30.6b5.8x7x2.2x
Fri, 16 Aug 2024UK£215.9bUK£98.6bUK£31.0b6x7x2.2x
Sun, 14 Jul 2024UK£216.8bUK£96.1bUK£31.1b6.1x7x2.3x
Tue, 11 Jun 2024UK£219.4bUK£97.3bUK£31.5b6.2x7x2.3x
Thu, 09 May 2024UK£227.5bUK£98.4bUK£31.7b5.9x7.2x2.3x
Sat, 06 Apr 2024UK£237.3bUK£121.3bUK£36.6b5.5x6.5x2x
Mon, 04 Mar 2024UK£222.5bUK£120.9bUK£36.5b6.1x6.1x1.8x
Wed, 31 Jan 2024UK£191.3bUK£109.5bUK£37.5b5.4x5.1x1.7x
Fri, 29 Dec 2023UK£201.9bUK£109.2bUK£37.4b5.1x5.4x1.8x
Sun, 26 Nov 2023UK£192.9bUK£109.9bUK£37.6b4.8x5.1x1.8x
Tue, 24 Oct 2023UK£198.5bUK£104.7bUK£34.7b4.9x5.7x1.9x
Thu, 21 Sep 2023UK£203.6bUK£103.9bUK£34.5b5.4x5.9x2x
Sat, 19 Aug 2023UK£194.9bUK£102.1bUK£33.8b5.2x5.8x1.9x
Mon, 17 Jul 2023UK£226.4bUK£118.5bUK£37.1b5.3x6.1x1.9x
Wed, 14 Jun 2023UK£226.4bUK£121.2bUK£37.8b5.7x6x1.9x
Price to Earnings Ratio

6x


Total Market Cap: UK£226.4bTotal Earnings: UK£37.8bTotal Revenue: UK£121.2bTotal 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 11.7x 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 3.3% 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-0.73%
Financials-1.92%
Banks-2.07%
Diversified Banks-2.06%
Regional Banks-5.10%
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 21.0x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 22% 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
ARBB Arbuthnot Banking GroupUK£8.401.8%
+UK£2.4m		-10.2%PB0.5x

Latest News

BGEO
UK£105.50
Lion Finance Group
7D
-5.0%
1Y
53.1%
HSBA
UK£13.61
HSBC Holdings
7D
-2.4%
1Y
54.3%
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.
NWG
UK£5.94
NatWest Group
7D
-0.9%
1Y
12.4%
HSBK
US$30.85
Halyk Bank of Kazakhstan
7D
-3.6%
1Y
36.5%
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
-7.2%
1Y
39.9%
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.
BARC
UK£4.58
Barclays
7D
-0.07%
1Y
37.3%
New Narrative • Jun 03

Why Is Barclays Trading Below Book Value?

Barclays is currently trading at a price-to-book ratio of around 0.8, depending on the source used. In simple terms, this means that for every £100 of net assets attributable to shareholders on Barclays' balance sheet, the market is valuing those assets at approximately £80.
STAN
UK£19.33
Standard Chartered
7D
-3.0%
1Y
63.0%
Narrative Update • Jun 02

STAN: Fair Value Now Balances Execution Risks And Capital Return Prospects

Standard Chartered's analyst fair value estimate has been raised from £19.48 to £21.07. This reflects a series of higher price targets and rating upgrades from major banks as analysts factor in updated assumptions on growth, margins and future P/E multiples.
LLOY
UK£0.99
Lloyds Banking Group
7D
-2.7%
1Y
28.9%
Narrative Update • May 28

LLOY: Recent Buyback Will Still Not Justify Richer Future Multiple

Analysts have made a small upward adjustment to their Lloyds Banking Group price target in £ terms, citing updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E that are now slightly different from prior estimates. What's in the News Lloyds Banking Group completed a share buyback tranche covering 600,000,000 shares, described as 1.02% of the company, between January 30, 2026 and March 31, 2026 (Key Developments).
ARBB
UK£8.40
Arbuthnot Banking Group
7D
1.8%
1Y
-10.2%