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U.K. (FTSE) Banks Industry Analysis

UpdatedJun 27, 2026
DataAggregated Company Financials
Companies13
  • 7D0.8%
  • 3M21.9%
  • 1Y52.0%
  • YTD12.5%

The Banks is pretty flat in the last 7 days, but Lloyds Banking Group has stood out, gaining 3.9%. As for the the longer term, the industry is up 52% 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
Sat, 27 Jun 2026UK£491.9bUK£134.5bUK£39.5b9.6x12.4x3.7x
Mon, 25 May 2026UK£462.3bUK£133.4bUK£39.2b8.5x11.8x3.5x
Wed, 22 Apr 2026UK£461.2bUK£131.4bUK£38.3b9.2x12x3.5x
Fri, 20 Mar 2026UK£402.5bUK£131.0bUK£38.3b8.6x10.5x3.1x
Sun, 15 Feb 2026UK£437.9bUK£125.9bUK£34.5b9.3x12.7x3.5x
Tue, 13 Jan 2026UK£441.4bUK£125.2bUK£33.7b9.8x13.1x3.5x
Thu, 11 Dec 2025UK£411.5bUK£125.7bUK£33.8b9.2x12.2x3.3x
Sat, 08 Nov 2025UK£394.1bUK£126.3bUK£34.0b8.6x11.6x3.1x
Mon, 06 Oct 2025UK£378.3bUK£121.5bUK£34.4b9.1x11x3.1x
Wed, 03 Sep 2025UK£346.8bUK£122.2bUK£34.6b8.4x10x2.8x
Fri, 01 Aug 2025UK£346.9bUK£122.0bUK£34.0b9.7x10.2x2.8x
Sun, 29 Jun 2025UK£330.3bUK£120.3bUK£34.1b8.5x9.7x2.7x
Tue, 27 May 2025UK£326.8bUK£121.0bUK£34.4b8.2x9.5x2.7x
Thu, 24 Apr 2025UK£311.0bUK£123.0bUK£36.5b7.9x8.5x2.5x
Sat, 22 Mar 2025UK£320.2bUK£124.3bUK£36.8b8x8.7x2.6x
Mon, 17 Feb 2025UK£306.7bUK£124.1bUK£38.0b6.2x8.1x2.5x
Wed, 15 Jan 2025UK£276.8bUK£124.9bUK£37.6b4.6x7.4x2.2x
Fri, 13 Dec 2024UK£273.7bUK£122.3bUK£36.7b5x7.5x2.2x
Sun, 10 Nov 2024UK£255.6bUK£121.2bUK£36.2b4.9x7.1x2.1x
Tue, 08 Oct 2024UK£219.8bUK£96.1bUK£30.4b6x7.2x2.3x
Thu, 05 Sep 2024UK£213.3bUK£97.4bUK£30.6b6.1x7x2.2x
Sat, 03 Aug 2024UK£207.0bUK£98.8bUK£31.1b6.2x6.7x2.1x
Mon, 01 Jul 2024UK£215.3bUK£97.6bUK£31.6b6x6.8x2.2x
Wed, 29 May 2024UK£220.9bUK£97.1bUK£31.2b6.1x7.1x2.3x
Fri, 26 Apr 2024UK£211.2bUK£98.2bUK£32.1b5.6x6.6x2.2x
Sun, 24 Mar 2024UK£230.1bUK£121.4bUK£36.6b5.2x6.3x1.9x
Tue, 20 Feb 2024UK£194.0bUK£107.0bUK£36.8b5.2x5.3x1.8x
Thu, 18 Jan 2024UK£182.3bUK£109.5bUK£37.5b5.1x4.9x1.7x
Sat, 16 Dec 2023UK£193.8bUK£109.5bUK£37.5b5.4x5.2x1.8x
Mon, 13 Nov 2023UK£188.5bUK£111.4bUK£38.2b5.1x4.9x1.7x
Wed, 11 Oct 2023UK£215.2bUK£104.4bUK£34.6b5.2x6.2x2.1x
Fri, 08 Sep 2023UK£191.9bUK£103.5bUK£34.3b5.2x5.6x1.9x
Sun, 06 Aug 2023UK£207.3bUK£101.8bUK£33.7b5.2x6.2x2x
Tue, 04 Jul 2023UK£229.7bUK£120.2bUK£37.7b5.4x6.1x1.9x
Price to Earnings Ratio

6.1x


Total Market Cap: UK£229.7bTotal Earnings: UK£37.7bTotal Revenue: UK£120.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.4x202420252026
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 12.4x which is higher than its 3-year average PE of 8.4x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.7x.
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 3.8% 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 Market1.14%
Financials1.02%
Banks0.78%
Regional Banks8.70%
Diversified Banks0.74%
Industry PE
  • Investors are most optimistic about the Regional Banks industry even though it's trading below its 3-year average PE ratio of 21.3x.
    • Analysts are expecting annual earnings growth of 21.4%, which is higher than its past year's earnings growth of 5.7% per year.
  • Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 8.4x.
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
LLOY Lloyds Banking GroupUK£1.093.9%
+UK£2.4b		42.5%PB1.3x
BARC BarclaysUK£5.112.9%
+UK£1.8b		50.8%PB0.9x
NWG NatWest GroupUK£6.562.9%
+UK£1.5b		28.7%PB1.2x
SHAW Shawbrook GroupUK£3.4711.2%
+UK£181.9m		n/aPB1x
MTRO Metro Bank HoldingsUK£1.755.1%
+UK£56.6m		34.3%PB0.8x

Latest News

HSBA
UK£14.23
HSBC Holdings
7D
-0.6%
1Y
60.9%
LLOY
UK£1.09
Lloyds Banking Group
7D
3.9%
1Y
42.5%
Narrative Update • Jun 26

LLOY: AI Investment And Buybacks Will Shape A Balanced Future Return Profile

The latest narrative update on Lloyds Banking Group reflects a revised analyst price target that aligns with a fair value estimate of £1.16 per share, with analysts citing adjusted assumptions for the discount rate, revenue growth, profit margin and future P/E to support the change. What’s in the News for Lloyds Banking Group Lloyds Banking Group plans to hire close to 300 people for agentic AI related roles, including data and AI scientists, engineers, responsible AI specialists, and AI product managers, with more than 1,000 AI related roles expected in 2026 as part of a wider AI expansion plan.
NWG
UK£6.56
NatWest Group
7D
2.9%
1Y
28.7%
Narrative Update • Jun 25

NWG: Structural Hedge Reinvestment And Buybacks Will Drive Future Re Rating

Analysts have nudged their price target for NatWest Group higher to £7.44 from £7.38, citing updated assumptions around fair value, revenue growth, profit margins and future P/E, along with recent supportive research that highlights UK banks' balance sheet strength and potential earnings from structural hedge reinvestment. Analyst Commentary Recent research around NatWest Group shows a mix of optimism and caution, with several firms updating price targets and views on the stock's earnings drivers and risk profile.
BARC
UK£5.11
Barclays
7D
2.9%
1Y
50.8%
Narrative Update • Jun 25

BARC: Buyback And Youth Platform Acquisition Are Expected To Support Steady Returns

Analysts have nudged their fair value estimate for Barclays stock from £5.39 to £5.49, citing updated assumptions for revenue growth, profit margins, discount rate and future P/E that together support a slightly higher price target. What’s in the News for Barclays Barclays is under scrutiny over its previous dealings with Market Financial Solutions, after reportedly reducing exposure and blocking transactions when financial irregularities were identified, while some creditors question why other banks were not warned about concerns ahead of the lender’s collapse and £1.3b fraud allegations (source: recent investigative reporting).
HSBK
US$29.70
Halyk Bank of Kazakhstan
7D
-3.4%
1Y
22.5%
Narrative Update • Jun 24

HSBK: Steady Governance Changes And P/E Assumptions Will Support Balanced Outlook

Analysts have kept their $31.90 price target for Halyk Bank of Kazakhstan steady, citing largely unchanged assumptions around fair value, discount rate, revenue growth, profit margin and future P/E, which together support a consistent view of the stock. What’s in the News for Halyk Bank of Kazakhstan JSC Halyk Bank shareholders approved amendments to the bank’s Charter at the Annual General Shareholders' Meeting held on April 23, 2026, according to the meeting resolution.
TBCG
UK£44.68
TBC Bank Group
7D
-1.4%
1Y
-2.4%
Narrative Update • Jun 23

TBCG: Dividend Payouts Will Support Future Upside Potential

Analysts have kept their fair value estimate for TBC Bank Group broadly steady at about £55 per share, with a slightly lower assumed future P/E and minor tweaks to the discount rate and long term profitability assumptions informing the latest price target narrative. What's in the News for TBC Bank Group TBC Bank Group appointed Guy Stevens as Group Chief Financial Officer, effective July 13, 2026.
STB
UK£13.76
Secure Trust Bank
7D
3.3%
1Y
71.1%
Narrative Update • Jun 23

STB: Higher Assumed Profitability Will Drive Future Upside Potential

Analysts have modestly adjusted their fair value estimate for Secure Trust Bank to £20.00 per share. This reflects updated assumptions around revenue growth, profit margins and future P/E expectations.
BGEO
UK£108.70
Lion Finance Group
7D
-5.0%
1Y
55.4%
MTRO
UK£1.75
Metro Bank Holdings
7D
5.1%
1Y
34.3%
Narrative Update • Jun 18

MTRO: Raised Price View Will Highlight Risk Of Overstretched Earnings Multiple

Analysts have raised their price target on Metro Bank Holdings stock to £1.95 from £1.70, citing updated research that supports a slightly adjusted discount rate and forward P/E assumptions, while leaving fair value and core operating metrics unchanged. What’s in the News for Metro Bank Holdings Analyst research updates have adjusted the Metro Bank Holdings stock price target to £1.95, based on revised discount rate and forward P/E inputs.
STAN
UK£20.36
Standard Chartered
7D
-0.4%
1Y
67.0%
Narrative Update • Jun 18

STAN: Fair Value Now Balances Rating Upgrades With Execution Delivery Risks

Standard Chartered's analyst price target has been revised slightly higher to £21.08 from £21.07, with analysts citing recent price target increases and rating upgrades as support for the updated valuation assumptions. Analyst Commentary Recent Street research on Standard Chartered reflects a mix of optimism on the stock's valuation potential and some lingering caution around execution and earnings delivery.
CBG
UK£4.45
Close Brothers Group
7D
-1.9%
1Y
17.4%
Narrative Update • Jun 15

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

Analysts have nudged their price target on Close Brothers Group slightly higher to £5.35, reflecting updated views on fair value, discount rate, revenue growth, profit margin and future P/E assumptions following recent research. What's in the News No recent company specific news items, periodical coverage or key developments were provided in the available sources for Close Brothers Group.
SHAW
UK£3.47
Shawbrook Group
7D
11.2%
1Y
n/a
ARBB
UK£8.33
Arbuthnot Banking Group
7D
-0.9%
1Y
-12.4%