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U.K. (FTSE) Banks Industry Analysis

UpdatedJun 10, 2026
DataAggregated Company Financials
Companies13
  • 7D-5.8%
  • 3M3.4%
  • 1Y41.0%
  • YTD2.3%

Over the last 7 days, the Banks industry has dropped 5.8%, driven by a pullback from HSBC Holdings of 7.0%. This takes the industry's 12 month performance to a gain of 41%. 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
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
Sat, 17 Jun 2023UK£228.0bUK£120.3bUK£37.5b5.6x6.1x1.9x
Price to Earnings Ratio

6.1x


Total Market Cap: UK£228.0bTotal Earnings: UK£37.5bTotal Revenue: UK£120.3bTotal 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 11.4x 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 3.4x.
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 3.5% 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-1.85%
Financials-4.45%
Banks-5.78%
Regional Banks-2.26%
Diversified Banks-5.80%
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 21.1x.
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 10.0% 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
HSBK Halyk Bank of KazakhstanUS$31.301.1%
+US$95.3m		38.5%PB1.1x
SHAW Shawbrook GroupUK£3.064.4%
+UK£67.6m		n/aPB0.9x
ARBB Arbuthnot Banking GroupUK£8.351.2%
+UK£1.6m		-12.1%PB0.5x

Latest News

LLOY
UK£0.97
Lloyds Banking Group
7D
-1.7%
1Y
27.8%
STAN
UK£17.91
Standard Chartered
7D
-11.0%
1Y
54.2%
BARC
UK£4.46
Barclays
7D
-3.0%
1Y
38.0%
BGEO
UK£103.70
Lion Finance Group
7D
-3.0%
1Y
54.2%
NWG
UK£5.86
NatWest Group
7D
-0.6%
1Y
14.0%
Narrative Update • Jun 06

NWG: Evelyn Deal And Buybacks Will Support Future Re Rating

Analysts have inched up their blended NatWest Group price target to roughly £7.38 from about £7.33, reflecting a slightly higher fair value estimate and updated assumptions on discount rate, revenue growth, profit margins and future P/E after a mix of recent target hikes and cuts across the Street. Analyst Commentary Bullish Takeaways Bullish analysts point to recent price target increases, including the 30 GBp move from JPMorgan and a separate 110 GBp hike, as support for a higher valuation range if NatWest executes on current plans.
HSBA
UK£12.93
HSBC Holdings
7D
-7.1%
1Y
48.0%
Narrative Update • Jun 05

HSBA: Future Returns Will Hinge On Conviction Status And AI Cost Cuts

Analysts have lifted the HSBC Holdings price target to £14.20 from £13.67. This reflects updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E, alongside recent supportive research that includes price target increases and the stock being added to a European conviction list.
TBCG
UK£42.32
TBC Bank Group
7D
-2.9%
1Y
-6.2%
Narrative Update • Jun 05

TBCG: Dividend Commitment And New Finance Leadership Will Support Future Upside

Analysts have nudged their fair value estimate for TBC Bank Group slightly higher from £54.78 to £55.00, reflecting small adjustments to the discount rate and future P/E assumptions, while keeping revenue growth and profit margin expectations broadly in line with prior views. What's in the News TBC Bank Group plans to pay a first quarter 2026 dividend of GEL 1.75 per share, with the dividend paid in £ to shareholders on the register as of 14 August 2026, and a scheduled payment date of 11 September 2026.
HSBK
US$31.30
Halyk Bank of Kazakhstan
7D
1.1%
1Y
38.5%
Narrative Update • Jun 05

HSBK: Governance Changes And Higher P/E Will Shape Balanced Outlook

Analysts have held their $31.90 price target for Halyk Bank of Kazakhstan. They explained the unchanged view by pointing to updated assumptions that pair a slightly higher discount rate and revenue growth outlook with lower profit margin expectations and a higher future P/E of 4.87x.
MTRO
UK£1.60
Metro Bank Holdings
7D
-4.5%
1Y
42.7%
Narrative Update • Jun 04

MTRO: Updated Street Views Will Shape A More Balanced Future Profile

Analysts have lifted their price target on Metro Bank Holdings to £1.55 from £1.45, with the change supported by recent Street research that raised a key price target to £1.95 from £1.70 and updated assumptions on discount rate, revenue growth, profit margin and future P/E. What's in the News Analysts raised their price target on Metro Bank Holdings to £1.55 from £1.45, reflecting updated Street research inputs.
SHAW
UK£3.06
Shawbrook Group
7D
4.4%
1Y
n/a
ARBB
UK£8.35
Arbuthnot Banking Group
7D
1.2%
1Y
-12.1%