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U.K. (FTSE) Banks Industry Analysis
UpdatedMay 16, 2025
DataAggregated Company Financials
Companies12
- 7D4.2%
- 3M6.5%
- 1Y35.6%
- YTD18.5%
Over the last 7 days, the Banks industry has risen 4.5%, driven by gains from HSBC Holdings of 4.3%. This takes the industry's 12 month performance to a gain of 35%. As for the next few years, earnings are expected to grow by 7.9% per annum.
Industry Valuation and Performance
Has the U.K. Banks Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 16 May 2025 | UK£324.6b | UK£121.8b | UK£34.5b | 8.1x | 9.4x | 2.7x |
| Sun, 13 Apr 2025 | UK£278.5b | UK£123.9b | UK£36.8b | 6.9x | 7.6x | 2.2x |
| Tue, 11 Mar 2025 | UK£309.2b | UK£124.6b | UK£37.1b | 7.1x | 8.3x | 2.5x |
| Thu, 06 Feb 2025 | UK£295.7b | UK£123.3b | UK£37.0b | 5.3x | 8x | 2.4x |
| Sat, 04 Jan 2025 | UK£276.2b | UK£123.8b | UK£37.2b | 4.8x | 7.4x | 2.2x |
| Mon, 02 Dec 2024 | UK£265.8b | UK£122.2b | UK£36.7b | 4.9x | 7.2x | 2.2x |
| Wed, 30 Oct 2024 | UK£256.3b | UK£119.8b | UK£35.3b | 4.8x | 7.3x | 2.1x |
| Fri, 27 Sep 2024 | UK£219.0b | UK£96.2b | UK£30.2b | 6.9x | 7.3x | 2.3x |
| Sun, 25 Aug 2024 | UK£216.0b | UK£97.1b | UK£30.5b | 6.3x | 7.1x | 2.2x |
| Tue, 23 Jul 2024 | UK£217.4b | UK£96.3b | UK£31.2b | 6.2x | 7x | 2.3x |
| Thu, 20 Jun 2024 | UK£217.7b | UK£97.3b | UK£31.5b | 6x | 6.9x | 2.2x |
| Sat, 18 May 2024 | UK£224.3b | UK£97.4b | UK£31.4b | 6.1x | 7.2x | 2.3x |
| Mon, 15 Apr 2024 | UK£234.9b | UK£122.2b | UK£36.9b | 5.3x | 6.4x | 1.9x |
| Wed, 13 Mar 2024 | UK£222.1b | UK£120.2b | UK£36.3b | 6.3x | 6.1x | 1.8x |
| Fri, 09 Feb 2024 | UK£187.6b | UK£107.1b | UK£36.8b | 5.2x | 5.1x | 1.8x |
| Sun, 07 Jan 2024 | UK£202.4b | UK£109.3b | UK£37.4b | 5.6x | 5.4x | 1.9x |
| Tue, 05 Dec 2023 | UK£195.4b | UK£109.7b | UK£37.6b | 5.3x | 5.2x | 1.8x |
| Thu, 02 Nov 2023 | UK£186.2b | UK£112.0b | UK£38.4b | 4.9x | 4.8x | 1.7x |
| Sat, 30 Sep 2023 | UK£208.3b | UK£104.8b | UK£34.8b | 5.4x | 6x | 2x |
| Mon, 28 Aug 2023 | UK£194.4b | UK£102.7b | UK£34.0b | 5.2x | 5.7x | 1.9x |
| Wed, 26 Jul 2023 | UK£237.1b | UK£119.5b | UK£37.5b | 5.3x | 6.3x | 2x |
| Fri, 23 Jun 2023 | UK£221.6b | UK£120.2b | UK£37.7b | 5.1x | 5.9x | 1.8x |
| Sun, 21 May 2023 | UK£231.5b | UK£124.2b | UK£38.0b | 5.7x | 6.1x | 1.9x |
| Tue, 18 Apr 2023 | UK£225.9b | UK£115.6b | UK£30.5b | 6.3x | 7.4x | 2x |
| Thu, 16 Mar 2023 | UK£214.0b | UK£117.0b | UK£31.5b | 4.4x | 6.8x | 1.8x |
| Sat, 11 Feb 2023 | UK£219.4b | UK£88.2b | UK£21.8b | 7.2x | 10.1x | 2.5x |
| Mon, 09 Jan 2023 | UK£202.6b | UK£87.9b | UK£21.7b | 7x | 9.3x | 2.3x |
| Wed, 07 Dec 2022 | UK£183.6b | UK£87.7b | UK£21.7b | 6.6x | 8.5x | 2.1x |
| Fri, 04 Nov 2022 | UK£166.7b | UK£91.2b | UK£22.3b | 5.8x | 7.5x | 1.8x |
| Sun, 02 Oct 2022 | UK£168.9b | UK£94.3b | UK£24.4b | 5.3x | 6.9x | 1.8x |
| Tue, 30 Aug 2022 | UK£187.3b | UK£91.6b | UK£23.7b | 6.2x | 7.9x | 2x |
| Thu, 28 Jul 2022 | UK£210.0b | UK£113.6b | UK£28.4b | 4.8x | 7.4x | 1.8x |
| Sat, 25 Jun 2022 | UK£211.6b | UK£112.9b | UK£28.3b | 4.7x | 7.5x | 1.9x |
| Mon, 23 May 2022 | UK£201.1b | UK£111.9b | UK£28.1b | 4.5x | 7.1x | 1.8x |
Price to Earnings Ratio
7.1x
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 9.3x which is higher than its 3-year average PE of 7.6x.
- The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 2.7x.
Past Earnings Growth
- The earnings for companies in the Banks industry have grown 7.3% per year over the last three years.
- Revenues for these companies have grown 2.9% 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 Market | 1.36% | |
| Financials | 2.59% | |
| Banks | 4.24% | |
| Regional Banks | 11.46% | |
| Diversified Banks | 4.22% | |
Industry PE
- Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 16.4x.
- Analysts are expecting annual earnings growth of 33.2%, which is lower than the prior year's growth of 44.1% 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 7.6x.
Forecasted Growth
- Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 33% over the next 5 years.
- However this is lower than its past earnings growth rate of 44% per year.
- In contrast, the Diversified Banks industry is expected to see its earnings grow by 7.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| HSBA HSBC Holdings | UK£8.80 | 4.3% +UK£6.2b | 26.3% | PB1.1x | |
| BARC Barclays | UK£3.22 | 5.7% +UK£2.4b | 50.0% | PB0.6x | |
| STAN Standard Chartered | UK£11.49 | 7.7% +UK£1.9b | 46.2% | PB0.7x | |
| LLOY Lloyds Banking Group | UK£0.75 | 2.9% +UK£1.3b | 35.9% | PB0.9x | |
| NWG NatWest Group | UK£4.98 | 2.5% +UK£976.2m | 52.6% | PB1x |
