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U.K. (FTSE) Banks Industry Analysis

UpdatedJul 13, 2026
DataAggregated Company Financials
Companies13
  • 7D-1.1%
  • 3M10.2%
  • 1Y52.1%
  • YTD15.5%

Over the last 7 days, the Banks industry has dropped 1.1%, driven by pullbacks in Lloyds Banking Group and NatWest Group of 2.5% and 3.0%, respectively. Over the past 12 months, the industry was up 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
Mon, 13 Jul 2026UK£505.1bUK£133.6bUK£39.3b9.6x12.9x3.8x
Wed, 10 Jun 2026UK£448.1bUK£133.6bUK£39.2b8.6x11.4x3.4x
Fri, 08 May 2026UK£456.9bUK£132.7bUK£39.1b8.6x11.7x3.4x
Sun, 05 Apr 2026UK£431.5bUK£132.8bUK£38.7b8.7x11.1x3.3x
Tue, 03 Mar 2026UK£472.1bUK£131.1bUK£38.3b8.8x12.3x3.6x
Thu, 29 Jan 2026UK£458.2bUK£123.8bUK£33.4b10x13.7x3.7x
Sat, 27 Dec 2025UK£434.5bUK£125.1bUK£33.7b9.3x12.9x3.5x
Mon, 24 Nov 2025UK£381.7bUK£126.7bUK£34.1b8.3x11.2x3x
Wed, 22 Oct 2025UK£354.5bUK£121.9bUK£34.5b8.4x10.3x2.9x
Fri, 19 Sep 2025UK£368.5bUK£121.5bUK£34.4b8.7x10.7x3x
Sun, 17 Aug 2025UK£352.4bUK£121.2bUK£34.2b9x10.3x2.9x
Tue, 15 Jul 2025UK£338.9bUK£121.5bUK£34.5b8.6x9.8x2.8x
Thu, 12 Jun 2025UK£324.9bUK£121.0bUK£34.4b8.1x9.4x2.7x
Sat, 10 May 2025UK£313.7bUK£121.6bUK£34.6b7.8x9.1x2.6x
Mon, 07 Apr 2025UK£277.8bUK£124.9bUK£37.1b6.7x7.5x2.2x
Wed, 05 Mar 2025UK£326.1bUK£125.3bUK£37.3b7.1x8.7x2.6x
Fri, 31 Jan 2025UK£298.8bUK£123.6bUK£37.1b5.3x8x2.4x
Sun, 29 Dec 2024UK£274.3bUK£123.0bUK£36.9b4.8x7.4x2.2x
Tue, 26 Nov 2024UK£266.7bUK£123.3bUK£37.1b4.9x7.2x2.2x
Thu, 24 Oct 2024UK£219.0bUK£96.8bUK£30.5b5.8x7.2x2.3x
Sat, 21 Sep 2024UK£213.9bUK£96.6bUK£30.3b6.7x7.1x2.2x
Mon, 19 Aug 2024UK£216.5bUK£98.2bUK£30.9b6x7x2.2x
Wed, 17 Jul 2024UK£215.6bUK£96.1bUK£31.1b6.1x6.9x2.2x
Fri, 14 Jun 2024UK£216.2bUK£97.1bUK£31.4b6.2x6.9x2.2x
Sun, 12 May 2024UK£224.0bUK£98.3bUK£31.7b6x7.1x2.3x
Tue, 09 Apr 2024UK£238.6bUK£121.2bUK£36.5b5.5x6.5x2x
Thu, 07 Mar 2024UK£223.4bUK£120.5bUK£36.4b6.3x6.1x1.9x
Sat, 03 Feb 2024UK£193.4bUK£109.7bUK£37.6b5.3x5.1x1.8x
Mon, 01 Jan 2024UK£202.9bUK£109.2bUK£37.4b5x5.4x1.9x
Wed, 29 Nov 2023UK£189.5bUK£109.4bUK£37.4b5.4x5.1x1.7x
Fri, 27 Oct 2023UK£194.2bUK£107.0bUK£36.0b4.8x5.4x1.8x
Sun, 24 Sep 2023UK£208.9bUK£104.7bUK£34.7b5.4x6x2x
Tue, 22 Aug 2023UK£194.7bUK£102.1bUK£33.8b5.1x5.8x1.9x
Thu, 20 Jul 2023UK£232.6bUK£119.4bUK£37.4b5.4x6.2x1.9x
Price to Earnings Ratio

6.2x


Total Market Cap: UK£232.6bTotal Earnings: UK£37.4bTotal Revenue: UK£119.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8.5x202420252026
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 12.9x which is higher than its 3-year average PE of 8.5x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.8x.
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 Market-1.38%
Financials-0.88%
Banks-1.12%
Regional Banks-0.0027%
Diversified Banks-1.13%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.5x.
    • 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 21.5x.
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£14.710.4%
+UK£926.0m		59.4%PB1.7x
SHAW Shawbrook GroupUK£3.452.2%
+UK£39.0m		n/aPB1x
TBCG TBC Bank GroupUK£46.620.6%
+UK£14.3m		-6.0%PB1.4x
CBG Close Brothers GroupUK£4.071.8%
+UK£10.7m		2.2%PB0.4x

Latest News

SHAW
UK£3.45
Shawbrook Group
7D
2.2%
1Y
n/a
BARC
UK£5.13
Barclays
7D
-3.2%
1Y
49.0%
LLOY
UK£1.12
Lloyds Banking Group
7D
-2.8%
1Y
46.6%
Narrative Update • Jul 10

LLOY: Relaxed Leverage Rules And Buybacks Will Support Future Upside

Analysts have nudged their price target for Lloyds Banking Group to £1.35 from £1.30, citing updated assumptions around discount rates, revenue growth, profit margins, and the stock’s future P/E multiple. What’s in the News for Lloyds Banking Group Bank of England plans to relax UK bank leverage rules, removing an additional leverage buffer that applies mainly to larger domestic focused lenders such as Lloyds Banking Group, according to recent central bank announcements.
MTRO
UK£1.69
Metro Bank Holdings
7D
-3.3%
1Y
27.1%
HSBA
UK£14.71
HSBC Holdings
7D
0.4%
1Y
59.4%
TBCG
UK£46.62
TBC Bank Group
7D
0.6%
1Y
-6.0%
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.
STAN
UK£21.25
Standard Chartered
7D
-1.2%
1Y
62.8%
Narrative Update • Jul 02

STAN: Fair Value Thesis Will Test Upgrades Against Indonesia Exposure And Execution

The analyst price target for Standard Chartered has been revised higher to £21.71 from £21.08, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E as analysts factor in a series of recent upgrades and target increases across the Street. Analyst Commentary Recent Street research on Standard Chartered points to a cluster of target price upgrades and rating changes.
NWG
UK£6.62
NatWest Group
7D
-3.5%
1Y
33.6%
CBG
UK£4.07
Close Brothers Group
7D
1.8%
1Y
2.2%
BGEO
UK£115.90
Lion Finance Group
7D
-1.2%
1Y
61.1%
STB
UK£14.98
Secure Trust Bank
7D
-0.3%
1Y
56.0%
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.