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U.K. (FTSE) Banks Industry Analysis

UpdatedMay 31, 2026
DataAggregated Company Financials
Companies13
  • 7D2.0%
  • 3M4.3%
  • 1Y47.2%
  • YTD7.6%

The Banks industry is up 2.0% in the last week, with HSBC Holdings up 1.4%. In the last 12 months, the industry was up 47%. Looking forward, earnings are forecast to grow by 10% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 31 May 2026UK£471.4bUK£133.1bUK£39.1b8.8x12.1x3.5x
Tue, 28 Apr 2026UK£447.1bUK£131.2bUK£38.3b8.9x11.7x3.4x
Thu, 26 Mar 2026UK£415.2bUK£131.8bUK£38.4b8.7x10.8x3.2x
Sat, 21 Feb 2026UK£457.3bUK£127.0bUK£34.9b9.4x13.1x3.6x
Mon, 19 Jan 2026UK£451.4bUK£125.5bUK£33.8b9.7x13.3x3.6x
Wed, 17 Dec 2025UK£417.0bUK£125.3bUK£33.7b9.2x12.4x3.3x
Fri, 14 Nov 2025UK£410.6bUK£126.1bUK£33.9b8.6x12.1x3.3x
Sun, 12 Oct 2025UK£363.2bUK£122.1bUK£34.6b8.6x10.5x3x
Tue, 09 Sep 2025UK£353.7bUK£121.5bUK£34.4b8.5x10.3x2.9x
Thu, 07 Aug 2025UK£349.8bUK£122.1bUK£34.5b8.8x10.1x2.9x
Sat, 05 Jul 2025UK£326.3bUK£120.5bUK£34.2b8.3x9.5x2.7x
Mon, 02 Jun 2025UK£325.9bUK£121.3bUK£34.5b8.3x9.4x2.7x
Wed, 30 Apr 2025UK£314.2bUK£120.0bUK£33.8b8x9.3x2.6x
Fri, 28 Mar 2025UK£325.5bUK£124.1bUK£37.0b8.2x8.8x2.6x
Sun, 23 Feb 2025UK£317.7bUK£125.8bUK£37.7b6.3x8.4x2.5x
Tue, 21 Jan 2025UK£292.2bUK£124.4bUK£37.4b4.8x7.8x2.3x
Thu, 19 Dec 2024UK£273.5bUK£122.4bUK£36.7b5x7.4x2.2x
Sat, 16 Nov 2024UK£263.4bUK£122.7bUK£36.8b4.9x7.2x2.1x
Mon, 14 Oct 2024UK£216.3bUK£96.1bUK£30.4b6x7.1x2.3x
Wed, 11 Sep 2024UK£209.9bUK£97.7bUK£30.7b5.9x6.8x2.1x
Fri, 09 Aug 2024UK£208.7bUK£99.1bUK£31.2b6.1x6.7x2.1x
Sun, 07 Jul 2024UK£216.7bUK£96.8bUK£31.3b6x6.9x2.2x
Tue, 04 Jun 2024UK£222.3bUK£96.9bUK£31.4b6.5x7.1x2.3x
Thu, 02 May 2024UK£220.2bUK£98.1bUK£31.7b6x7x2.2x
Sat, 30 Mar 2024UK£229.5bUK£121.4bUK£36.6b5.5x6.3x1.9x
Mon, 26 Feb 2024UK£214.6bUK£166.4bUK£92.5b5.8x2.3x1.3x
Wed, 24 Jan 2024UK£186.2bUK£109.6bUK£37.5b5.2x5x1.7x
Fri, 22 Dec 2023UK£196.2bUK£109.5bUK£37.5b5.2x5.2x1.8x
Sun, 19 Nov 2023UK£195.1bUK£110.3bUK£37.9b5.3x5.1x1.8x
Tue, 17 Oct 2023UK£209.7bUK£104.9bUK£34.8b5.1x6x2x
Thu, 14 Sep 2023UK£198.9bUK£103.5bUK£34.3b5.3x5.8x1.9x
Sat, 12 Aug 2023UK£205.4bUK£102.1bUK£33.8b5.5x6.1x2x
Mon, 10 Jul 2023UK£221.9bUK£119.6bUK£37.5b5.1x5.9x1.9x
Wed, 07 Jun 2023UK£228.9bUK£125.1bUK£38.2b5.7x6x1.8x
Price to Earnings Ratio

6x


Total Market Cap: UK£228.9bTotal Earnings: UK£38.2bTotal Revenue: UK£125.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.2x202420252026
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 12.1x which is higher than its 3-year average PE of 8.2x.
  • 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 2.1% 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-0.27%
Financials0.62%
Banks2.00%
Regional Banks7.47%
Diversified Banks1.97%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.2x.
    • 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 10.0% 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£13.941.4%
+UK£3.3b		59.6%PB1.6x
BARC BarclaysUK£4.582.7%
+UK£1.6b		39.8%PB0.8x
LLOY Lloyds Banking GroupUK£1.022.3%
+UK£1.3b		32.0%PB1.2x
NWG NatWest GroupUK£5.992.6%
+UK£1.2b		14.3%PB1.1x
STAN Standard CharteredUK£19.942.4%
+UK£979.7m		72.2%PB1.1x

Latest News

STAN
UK£19.94
Standard Chartered
7D
2.4%
1Y
72.2%
HSBA
UK£13.94
HSBC Holdings
7D
1.4%
1Y
59.6%
LLOY
UK£1.02
Lloyds Banking Group
7D
2.3%
1Y
32.0%
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).
BARC
UK£4.58
Barclays
7D
2.7%
1Y
39.8%
Narrative Update • May 27

BARC: Buyback And Small Business Partnership Will Support Stronger Future Returns

Analysts have nudged their fair value estimate for Barclays to £5.39, up from £5.30, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E expectations. What's in the News Barclays PLC has announced a share repurchase program of up to £500 million, with all repurchased ordinary shares to be cancelled and the program scheduled to end no later than October 24, 2026 (Key Developments).
ARBB
UK£8.25
Arbuthnot Banking Group
7D
-1.8%
1Y
-11.3%
HSBK
US$32.00
Halyk Bank of Kazakhstan
7D
2.7%
1Y
41.9%
NWG
UK£5.99
NatWest Group
7D
2.6%
1Y
14.3%
BGEO
UK£111.10
Lion Finance Group
7D
4.4%
1Y
66.3%
Narrative Update • May 16

BGEO: Index Inclusion And Capital Returns Will Support Higher Future Valuation Multiple

Analysts have lifted their price target on Lion Finance Group to £13,100 from £10,700, citing updated assumptions on discount rates, revenue growth, profit margins and future P/E multiples. Analyst Commentary Recent Street research on Lion Finance Group points to a more optimistic stance on the stock, with bullish analysts revisiting their assumptions on discount rates, revenue, margins and future P/E multiples.
CBG
UK£4.61
Close Brothers Group
7D
-0.8%
1Y
38.1%
Narrative Update • Apr 26

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£1.72
Metro Bank Holdings
7D
12.4%
1Y
48.6%
Narrative Update • Apr 26

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.