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U.K. (FTSE) Banks Industry Analysis

UpdatedJun 05, 2026
DataAggregated Company Financials
Companies13
  • 7D-0.2%
  • 3M9.7%
  • 1Y45.7%
  • YTD6.2%

In the last week, Banks has been flat. As for the the longer term, the industry is up 46% 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
Fri, 05 Jun 2026UK£465.4bUK£133.4bUK£39.2b8.6x11.9x3.5x
Sun, 03 May 2026UK£456.3bUK£132.1bUK£38.9b8.8x11.7x3.5x
Tue, 31 Mar 2026UK£409.7bUK£132.7bUK£38.7b8.3x10.6x3.1x
Thu, 26 Feb 2026UK£475.5bUK£126.9bUK£35.2b9x13.5x3.7x
Sat, 24 Jan 2026UK£448.4bUK£124.7bUK£33.6b9.8x13.3x3.6x
Mon, 22 Dec 2025UK£432.6bUK£125.5bUK£33.8b9.3x12.8x3.4x
Wed, 19 Nov 2025UK£387.3bUK£126.5bUK£34.1b8.4x11.4x3.1x
Fri, 17 Oct 2025UK£363.7bUK£121.7bUK£34.5b8.7x10.5x3x
Sun, 14 Sep 2025UK£365.8bUK£121.4bUK£34.4b8.8x10.6x3x
Tue, 12 Aug 2025UK£355.4bUK£121.8bUK£34.4b8.9x10.3x2.9x
Thu, 10 Jul 2025UK£333.9bUK£120.7bUK£34.3b8.5x9.7x2.8x
Sat, 07 Jun 2025UK£330.0bUK£121.1bUK£34.4b8.4x9.6x2.7x
Mon, 05 May 2025UK£310.6bUK£121.8bUK£34.7b7.6x9x2.6x
Wed, 02 Apr 2025UK£319.5bUK£124.7bUK£37.1b7.9x8.6x2.6x
Fri, 28 Feb 2025UK£328.3bUK£125.8bUK£37.5b7.4x8.8x2.6x
Sun, 26 Jan 2025UK£293.5bUK£123.4bUK£37.1b5.1x7.9x2.4x
Tue, 24 Dec 2024UK£270.6bUK£123.2bUK£37.0b4.8x7.3x2.2x
Thu, 21 Nov 2024UK£264.2bUK£122.8bUK£36.9b4.9x7.2x2.2x
Sat, 19 Oct 2024UK£219.8bUK£96.3bUK£30.5b6.1x7.2x2.3x
Mon, 16 Sep 2024UK£213.4bUK£97.5bUK£30.7b5.9x7x2.2x
Wed, 14 Aug 2024UK£211.3bUK£98.5bUK£31.0b6.2x6.8x2.1x
Fri, 12 Jul 2024UK£216.7bUK£96.4bUK£31.2b6.1x7x2.2x
Sun, 09 Jun 2024UK£219.5bUK£97.3bUK£31.5b6.3x7x2.3x
Tue, 07 May 2024UK£222.6bUK£98.1bUK£31.6b5.7x7x2.3x
Thu, 04 Apr 2024UK£234.0bUK£121.2bUK£36.6b5.4x6.4x1.9x
Sat, 02 Mar 2024UK£222.6bUK£120.9bUK£36.5b6.1x6.1x1.8x
Mon, 29 Jan 2024UK£194.2bUK£109.4bUK£37.5b5.4x5.2x1.8x
Wed, 27 Dec 2023UK£200.9bUK£109.3bUK£37.4b5.2x5.4x1.8x
Fri, 24 Nov 2023UK£193.6bUK£110.0bUK£37.8b4.9x5.1x1.8x
Sun, 22 Oct 2023UK£199.7bUK£105.1bUK£34.9b4.9x5.7x1.9x
Tue, 19 Sep 2023UK£201.5bUK£104.0bUK£34.5b5.3x5.8x1.9x
Thu, 17 Aug 2023UK£196.2bUK£101.8bUK£33.7b5.3x5.8x1.9x
Sat, 15 Jul 2023UK£226.3bUK£118.4bUK£37.1b5.3x6.1x1.9x
Mon, 12 Jun 2023UK£227.7bUK£121.4bUK£37.9b5.7x6x1.9x
Price to Earnings Ratio

6x


Total Market Cap: UK£227.7bTotal Earnings: UK£37.9bTotal Revenue: UK£121.4bTotal 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 11.9x 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 3.2% 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-0.63%
Financials-0.69%
Banks-0.18%
Diversified Banks-0.16%
Regional Banks-3.09%
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
BARC BarclaysUK£4.642.5%
+UK£1.5b		41.8%PB0.8x
NWG NatWest GroupUK£6.011.9%
+UK£891.1m		15.2%PB1.1x
CBG Close Brothers GroupUK£4.570.8%
+UK£5.7m		43.5%PB0.4x
ARBB Arbuthnot Banking GroupUK£8.502.7%
+UK£3.7m		-7.9%PB0.5x

Latest News

HSBA
UK£13.67
HSBC Holdings
7D
-1.0%
1Y
56.5%
STB
UK£12.76
Secure Trust Bank
7D
-2.4%
1Y
73.4%
BARC
UK£4.64
Barclays
7D
2.5%
1Y
41.8%
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£19.56
Standard Chartered
7D
-0.4%
1Y
69.7%
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.
BGEO
UK£108.40
Lion Finance Group
7D
-2.0%
1Y
57.9%
Narrative Update • Jun 01

BGEO: Index Promotion And Expanded Buybacks Will Support Higher Future Multiple

Analysts have maintained their £131 price target on Lion Finance Group, pointing to small adjustments in the discount rate, revenue growth, profit margin and forward P/E assumptions rather than a fundamental shift in their view of the stock. What's in the News Lion Finance Group PLC was added to the FTSE 100 Index, according to index review announcements.
CBG
UK£4.57
Close Brothers Group
7D
0.8%
1Y
43.5%
Narrative Update • Jun 01

CBG: UBS Upgrade And Stable Margins Will Support Higher P/E

Analysts have nudged their price target on Close Brothers Group slightly higher, now implying a fair value of about £5.31 per share versus £5.29 previously. This reflects updated views on discount rates, long term revenue growth, profit margins and future P/E multiples following recent research such as the UBS upgrade.
LLOY
UK£1.01
Lloyds Banking Group
7D
-0.6%
1Y
31.1%
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).
SHAW
UK£3.05
Shawbrook Group
7D
-4.8%
1Y
n/a
ARBB
UK£8.50
Arbuthnot Banking Group
7D
2.7%
1Y
-7.9%
HSBK
US$31.00
Halyk Bank of Kazakhstan
7D
-1.0%
1Y
36.3%
NWG
UK£6.01
NatWest Group
7D
1.9%
1Y
15.2%
TBCG
UK£43.86
TBC Bank Group
7D
-3.5%
1Y
-1.2%
Narrative Update • May 15

TBCG: Dividend Continuity And Leadership Transition Will Support Future Upside

Analysts have trimmed their fair value estimate for TBC Bank Group from £55.35 to £54.78, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E multiples. What's in the News TBC Bank Group PLC plans to appoint Guy Stevens as Group Chief Financial Officer, effective 13 July 2026.