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U.K. (FTSE) Banks Industry Analysis

UpdatedJul 26, 2026
DataAggregated Company Financials
Companies13
  • 7D2.8%
  • 3M17.7%
  • 1Y51.9%
  • YTD19.7%

Over the last 7 days, the Banks industry has risen 2.8%, driven by gains from HSBC Holdings of 4.1%. This takes the industry's 12 month performance to a gain of 52%. 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
Sun, 26 Jul 2026UK£523.3bUK£134.0bUK£39.4b9.8x13.3x3.9x
Tue, 23 Jun 2026UK£499.5bUK£134.2bUK£39.4b9.3x12.7x3.7x
Thu, 21 May 2026UK£459.1bUK£133.4bUK£39.2b8.6x11.7x3.4x
Sat, 18 Apr 2026UK£469.4bUK£131.2bUK£38.3b9.6x12.3x3.6x
Mon, 16 Mar 2026UK£409.0bUK£132.5bUK£38.6b8.7x10.6x3.1x
Wed, 11 Feb 2026UK£458.6bUK£125.1bUK£34.3b9.9x13.4x3.7x
Fri, 09 Jan 2026UK£441.2bUK£125.3bUK£33.8b10.2x13.1x3.5x
Sun, 07 Dec 2025UK£402.1bUK£125.8bUK£33.9b9.2x11.9x3.2x
Tue, 04 Nov 2025UK£392.4bUK£126.4bUK£34.0b8.6x11.5x3.1x
Thu, 02 Oct 2025UK£373.7bUK£121.5bUK£34.4b8.8x10.9x3.1x
Sat, 30 Aug 2025UK£348.7bUK£121.6bUK£34.4b8.5x10.1x2.9x
Mon, 28 Jul 2025UK£351.2bUK£121.5bUK£34.7b9.2x10.1x2.9x
Wed, 25 Jun 2025UK£329.0bUK£120.6bUK£34.3b8.4x9.6x2.7x
Fri, 23 May 2025UK£330.3bUK£121.6bUK£34.6b8.2x9.6x2.7x
Sun, 20 Apr 2025UK£293.6bUK£122.9bUK£36.4b7.4x8.1x2.4x
Tue, 18 Mar 2025UK£316.3bUK£124.0bUK£36.9b7.3x8.6x2.6x
Thu, 13 Feb 2025UK£312.1bUK£123.8bUK£37.2b6.2x8.4x2.5x
Sat, 11 Jan 2025UK£274.8bUK£124.8bUK£37.6b4.7x7.3x2.2x
Mon, 09 Dec 2024UK£268.8bUK£122.3bUK£36.7b4.9x7.3x2.2x
Wed, 06 Nov 2024UK£261.9bUK£120.6bUK£36.1b4.9x7.3x2.2x
Fri, 04 Oct 2024UK£214.1bUK£95.9bUK£30.3b6.1x7.1x2.2x
Sun, 01 Sep 2024UK£217.8bUK£97.5bUK£30.6b6.2x7.1x2.2x
Tue, 30 Jul 2024UK£221.8bUK£97.0bUK£31.3b6.6x7.1x2.3x
Thu, 27 Jun 2024UK£217.1bUK£97.7bUK£31.6b5.9x6.9x2.2x
Sat, 25 May 2024UK£221.4bUK£97.3bUK£31.3b6.1x7.1x2.3x
Mon, 22 Apr 2024UK£233.8bUK£122.6bUK£37.0b5.4x6.3x1.9x
Wed, 20 Mar 2024UK£221.4bUK£120.7bUK£36.3b6.4x6.1x1.8x
Fri, 16 Feb 2024UK£189.4bUK£107.3bUK£36.9b5.2x5.1x1.8x
Sun, 14 Jan 2024UK£194.1bUK£109.2bUK£37.4b5.4x5.2x1.8x
Tue, 12 Dec 2023UK£198.8bUK£110.1bUK£37.7b5.4x5.3x1.8x
Thu, 09 Nov 2023UK£190.2bUK£111.0bUK£38.1b5.2x5x1.7x
Sat, 07 Oct 2023UK£204.2bUK£104.5bUK£34.7b5x5.9x2x
Mon, 04 Sep 2023UK£195.3bUK£103.0bUK£34.2b5.3x5.7x1.9x
Wed, 02 Aug 2023UK£212.1bUK£97.0bUK£32.5b5.2x6.5x2.2x
Price to Earnings Ratio

6.5x


Total Market Cap: UK£212.1bTotal Earnings: UK£32.5bTotal Revenue: UK£97.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.6x202420252026
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 13.3x which is higher than its 3-year average PE of 8.6x.
  • The 3-year average PS ratio of 2.6x is lower than the industry's current PS ratio of 3.9x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 6.6% per year over the last three years.
  • Revenues for these companies have grown 11% 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 Market1.20%
Financials2.01%
Banks2.78%
Diversified Banks2.79%
Regional Banks1.99%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.6x.
    • Analysts are expecting annual earnings growth of 10.2%, which is lower than the prior year's growth of 12.7% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 21.7x.
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
HSBA HSBC HoldingsUK£15.534.1%
+UK£10.4b		62.0%PB1.8x
BARC BarclaysUK£5.251.7%
+UK£1.2b		45.7%PB0.9x
LLOY Lloyds Banking GroupUK£1.141.8%
+UK£1.1b		43.6%PB1.4x
STAN Standard CharteredUK£21.371.6%
+UK£739.4m		58.8%PB1.2x
NWG NatWest GroupUK£6.761.0%
+UK£524.9m		30.2%PB1.2x

Latest News

NWG
UK£6.76
NatWest Group
7D
1.0%
1Y
30.2%
HSBA
UK£15.53
HSBC Holdings
7D
4.1%
1Y
62.0%
LLOY
UK£1.14
Lloyds Banking Group
7D
1.8%
1Y
43.6%
Narrative Update • Jul 24

LLOY: Ongoing Share Buybacks Will Still Limit Future Upside

Analysts have modestly raised their fair value estimate for Lloyds Banking Group from £0.79 to £0.81, citing slightly higher assumed revenue growth, a marginally stronger profit margin outlook, and a small adjustment to the discount rate and future P/E assumptions. What’s in the News for Lloyds Banking Group Lloyds Banking Group has repurchased 7 million ordinary shares from Goldman Sachs International as part of its ongoing share buyback programme, with plans to cancel these shares, according to recent news reports.
ARBB
UK£8.28
Arbuthnot Banking Group
7D
-0.9%
1Y
-10.5%
BARC
UK£5.25
Barclays
7D
1.7%
1Y
45.7%
Narrative Update • Jul 23

BARC: Loan Digitisation And Buybacks Will Support Measured Future Returns

Analysts have nudged their fair value price target for Barclays higher from £5.49 to £5.66, citing updated assumptions for revenue growth, profit margins, the discount rate and future P/E expectations. What’s in the News for Barclays Barclays' agented U.S. broadly syndicated loan deals are now live on Versana’s centralized digital data platform via API integration, giving clients real time access to the bank's agent led facilities and digitally contributed loan data.
STAN
UK£21.37
Standard Chartered
7D
1.6%
1Y
58.8%
Narrative Update • Jul 16

STAN: Higher Earnings Outlook And Ratings Upgrades Will Support Repricing

Standard Chartered's updated analyst price target has increased to £25.32 from £21.10, reflecting analysts' more optimistic assumptions on revenue growth, profit margins and future P/E following a series of recent target upgrades and rating improvements across major banks. Analyst Commentary Recent research on Standard Chartered points to a cluster of optimistic views, with several bullish analysts lifting price targets and improving their ratings.
BGEO
UK£117.00
Lion Finance Group
7D
3.2%
1Y
59.1%
Narrative Update • Jul 14

BGEO: Expanded Buybacks And Rising Market Confidence Will Support Higher Future Multiple

Analysts have raised their price target on Lion Finance Group to £13,900 from £13,100, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margin, and future P/E expectations. What’s in the News for Lion Finance Group Lion Finance Group PLC shareholders approved the appointment of PricewaterhouseCoopers LLP as the company’s auditor at the Annual General Meeting held on May 22, 2026.
MTRO
UK£1.79
Metro Bank Holdings
7D
5.7%
1Y
34.7%
SHAW
UK£3.54
Shawbrook Group
7D
-0.3%
1Y
n/a
HSBK
US$31.50
Halyk Bank of Kazakhstan
7D
-2.0%
1Y
27.3%
Narrative Update • Jul 08

HSBK: Refined P/E Assumptions And Governance Update Will Support Upside Potential

Analysts have adjusted their price target for Halyk Bank of Kazakhstan to $35.00 from $31.90, citing updated fair value estimates, a slightly lower discount rate, and refined assumptions for long term profit margins and P/E levels. What's in the News for Halyk Bank of Kazakhstan JSC Halyk Bank shareholders approved an amendment to the Charter of JSC Halyk Bank at the Annual General Shareholders' Meeting held on April 23, 2026.
TBCG
UK£47.62
TBC Bank Group
7D
0.5%
1Y
-1.5%
Narrative Update • Jul 08

TBCG: Dividend Policy And Leadership Changes Will Support Future Upside

Analysts have modestly lifted their price target on TBC Bank Group to £57.79 from £55.00, citing updated assumptions around discount rates, profit margins and forward P/E multiples. What’s in the News for TBC Bank Group TBC Bank Group appointed Ernst & Young LLP as the company’s auditor at the Annual General Meeting held on May 19, 2026.