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U.K. (FTSE) Banks Industry Analysis

UpdatedMay 01, 2026
DataAggregated Company Financials
Companies13
  • 7D1.1%
  • 3M-1.7%
  • 1Y52.5%
  • YTD3.9%

Over the last 7 days, the Banks industry has dropped 1.4%, driven by declines in Shawbrook Group and Halyk Bank of Kazakhstan of 6.6% and 1.4%, respectively. Meanwhile, Standard Chartered actually outperformed within the industry, gaining 6.0% in the last week. In the past year, the industry has gained 49%. Earnings are forecast to grow by 8.9% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 01 May 2026UK£456.4bUK£131.6bUK£38.6b9x11.8x3.5x
Sun, 29 Mar 2026UK£406.4bUK£132.2bUK£38.6b8.3x10.5x3.1x
Tue, 24 Feb 2026UK£456.2bUK£127.0bUK£34.9b9.2x13.1x3.6x
Thu, 22 Jan 2026UK£447.5bUK£125.3bUK£33.8b9.7x13.2x3.6x
Sat, 20 Dec 2025UK£432.6bUK£125.5bUK£33.8b9.3x12.8x3.4x
Mon, 17 Nov 2025UK£401.8bUK£126.4bUK£34.0b8.5x11.8x3.2x
Wed, 15 Oct 2025UK£365.3bUK£122.2bUK£34.6b8.8x10.6x3x
Fri, 12 Sep 2025UK£365.9bUK£121.4bUK£34.3b8.8x10.7x3x
Sun, 10 Aug 2025UK£351.2bUK£121.7bUK£34.4b8.7x10.2x2.9x
Tue, 08 Jul 2025UK£329.1bUK£120.7bUK£34.3b8.4x9.6x2.7x
Thu, 05 Jun 2025UK£326.5bUK£121.0bUK£34.4b8.2x9.5x2.7x
Sat, 03 May 2025UK£310.7bUK£121.2bUK£34.2b7.6x9.1x2.6x
Mon, 31 Mar 2025UK£321.4bUK£124.6bUK£37.0b7.9x8.7x2.6x
Wed, 26 Feb 2025UK£320.7bUK£125.7bUK£37.4b6.6x8.6x2.6x
Fri, 24 Jan 2025UK£297.6bUK£124.1bUK£37.3b5x8x2.4x
Sun, 22 Dec 2024UK£269.5bUK£123.0bUK£36.9b4.9x7.3x2.2x
Tue, 19 Nov 2024UK£266.1bUK£122.7bUK£36.8b5x7.2x2.2x
Thu, 17 Oct 2024UK£216.8bUK£96.5bUK£30.5b6.1x7.1x2.2x
Sat, 14 Sep 2024UK£213.6bUK£97.5bUK£30.7b5.9x7x2.2x
Mon, 12 Aug 2024UK£209.9bUK£99.0bUK£31.2b6.1x6.7x2.1x
Wed, 10 Jul 2024UK£215.2bUK£96.9bUK£31.3b6x6.9x2.2x
Fri, 07 Jun 2024UK£219.8bUK£97.0bUK£31.4b6.3x7x2.3x
Sun, 05 May 2024UK£222.6bUK£98.2bUK£31.6b5.7x7x2.3x
Tue, 02 Apr 2024UK£229.4bUK£121.4bUK£36.6b5.5x6.3x1.9x
Thu, 29 Feb 2024UK£219.1bUK£120.8bUK£36.5b6x6x1.8x
Sat, 27 Jan 2024UK£194.2bUK£109.4bUK£37.5b5.4x5.2x1.8x
Mon, 25 Dec 2023UK£200.9bUK£109.3bUK£37.4b5.2x5.4x1.8x
Wed, 22 Nov 2023UK£194.3bUK£110.0bUK£37.8b5.1x5.1x1.8x
Fri, 20 Oct 2023UK£205.6bUK£105.2bUK£34.9b5x5.9x2x
Sun, 17 Sep 2023UK£204.1bUK£104.0bUK£34.5b5.4x5.9x2x
Tue, 15 Aug 2023UK£204.5bUK£102.0bUK£33.8b5.4x6.1x2x
Thu, 13 Jul 2023UK£226.8bUK£118.9bUK£37.3b5.3x6.1x1.9x
Sat, 10 Jun 2023UK£225.7bUK£121.4bUK£37.9b5.7x6x1.9x
Mon, 08 May 2023UK£226.5bUK£123.2bUK£37.6b5.4x6x1.8x
Price to Earnings Ratio

6x


Total Market Cap: UK£226.5bTotal Earnings: UK£37.6bTotal Revenue: UK£123.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.1x202420252026
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 8.1x.
  • The 3-year average PS ratio of 2.4x 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 2.2% 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-0.88%
Financials-0.032%
Banks1.10%
Diversified Banks1.12%
Regional Banks-2.22%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.1x.
    • Analysts are expecting annual earnings growth of 8.8%, which is higher than its past year's earnings growth of 7.9% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 20.6x.
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 8.8% 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
STAN Standard CharteredUK£18.636.0%
+UK£2.3b		69.8%PB1.1x
HSBA HSBC HoldingsUK£13.490.8%
+UK£1.9b		63.6%PB1.6x
LLOY Lloyds Banking GroupUK£1.000.8%
+UK£407.4m		39.7%PB1.2x
BARC BarclaysUK£4.310.9%
+UK£385.1m		46.4%PB0.8x
MTRO Metro Bank HoldingsUK£1.496.1%
+UK£57.9m		49.2%PB0.7x

Latest News

LLOY
UK£1.00
Lloyds Banking Group
7D
0.8%
1Y
39.7%
NWG
UK£5.85
NatWest Group
7D
0.1%
1Y
23.0%
BGEO
UK£110.40
Lion Finance Group
7D
-1.4%
1Y
77.9%

BGEO: Higher Price Level Will Increase Risk From Lower Future P E Assumptions

Analysts have lifted their price target on Lion Finance Group to £13,100 from £10,700. This reflects updated assumptions around a slightly lower discount rate, a small adjustment in long term revenue growth and profit margin forecasts, and a modestly lower future P/E multiple.
BARC
UK£4.31
Barclays
7D
0.9%
1Y
46.4%

BARC: Future Buybacks And Income Guidance Will Support Higher Share Price

Analysts have lifted their price target on Barclays to £X from £Y, reflecting updated views on revenue growth, profit margins, and a higher forward P/E assumption. What's in the News Barclays PLC has announced a new share repurchase program of up to £500 million, adding to its existing capital return activity (Buyback Transaction Announcements).
SHAW
UK£3.28
Shawbrook Group
7D
-6.6%
1Y
n/a
CBG
UK£4.41
Close Brothers Group
7D
-4.7%
1Y
30.4%

CBG: Lower Discount Rate And Sustainable Margins Will Support Higher Earnings Multiple

Analysts have lifted their price target on Close Brothers Group, citing a slightly lower discount rate and marginally adjusted assumptions around revenue growth, profit margins and future P/E that together point to a modestly higher implied equity value in £ terms. Analyst Commentary Recent research under the banner of “Close Brothers just upgraded at UBS, here's why” gives a clearer view of what is driving the higher implied equity value and where risks still sit for Close Brothers Group.
MTRO
UK£1.49
Metro Bank Holdings
7D
6.1%
1Y
49.2%

MTRO: Stable Assumptions Will Shape A More Measured Future Upside Potential

Analysts have maintained their fair value estimate for Metro Bank Holdings at £1.45. They cite largely unchanged assumptions for the discount rate, revenue growth, profit margin and future P/E ratio as the basis for keeping the price target at the same level.
STAN
UK£18.63
Standard Chartered
7D
6.0%
1Y
69.8%

STAN: Future Returns Will Hinge On Execution And Aggressive Capital Returns

Narrative update on Standard Chartered The updated analyst price target for Standard Chartered moves to £19.48 from £18.96, reflecting analysts' tweaks to fair value, discount rate, revenue growth, profit margin and future P/E assumptions following a mix of recent target changes and rating updates across the Street. Analyst Commentary Recent research on Standard Chartered has been active, with several firms revising price targets and ratings.
HSBA
UK£13.49
HSBC Holdings
7D
0.8%
1Y
63.6%
HSBK
US$34.30
Halyk Bank of Kazakhstan
7D
-1.4%
1Y
51.1%
TBCG
UK£48.50
TBC Bank Group
7D
-2.1%
1Y
0.2%

TBCG: Steady Fair Value And 2025 Dividend Plan Will Shape Outlook

Analysts have maintained their fair value estimate for TBC Bank Group at £55.35 per share, with only small tweaks to inputs such as the discount rate, revenue growth outlook and future P/E assumption. These adjustments support a steady price target rather than a material reset.
STB
UK£12.58
Secure Trust Bank
7D
0.6%
1Y
116.2%

STB: Share Buyback Prospects Will Support Stronger Future Share Price

Analysts have lifted their price target for Secure Trust Bank from £18.73 to £21.00, reflecting updated assumptions around revenue growth, profit margins and future P/E multiples. What's in the News On March 12, 2026, Secure Trust Bank announced that its Board of Directors will consider launching a share repurchase program, under which the company would buy back its own shares (Key Developments).