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U.K. (FTSE) Banks Industry Analysis

UpdatedAug 31, 2025
DataAggregated Company Financials
Companies12
  • 7D-3.8%
  • 3M7.3%
  • 1Y46.8%
  • YTD28.7%

Over the last 7 days, the Banks industry has dropped 3.8%, driven by pullbacks in NatWest Group and HSBC Holdings of 9.2% and 2.1%, respectively. In contrast, Arbuthnot Banking Group has gained 5.2%. This takes the industry's 12 month performance to a gain of 47%. As for the next few years, earnings are expected to grow by 8.4% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 31 Aug 2025UK£348.6bUK£121.6bUK£34.4b8.5x10.1x2.9x
Tue, 29 Jul 2025UK£350.5bUK£121.9bUK£34.8b9.7x10.1x2.9x
Thu, 26 Jun 2025UK£328.5bUK£120.4bUK£34.2b8.3x9.6x2.7x
Sat, 24 May 2025UK£326.9bUK£121.0bUK£34.4b8.2x9.5x2.7x
Mon, 21 Apr 2025UK£293.5bUK£122.9bUK£36.4b7.4x8.1x2.4x
Wed, 19 Mar 2025UK£323.1bUK£123.9bUK£36.7b8.2x8.8x2.6x
Fri, 14 Feb 2025UK£308.0bUK£123.7bUK£37.2b6x8.3x2.5x
Sun, 12 Jan 2025UK£274.7bUK£124.8bUK£37.6b4.7x7.3x2.2x
Tue, 10 Dec 2024UK£271.0bUK£122.1bUK£36.6b4.9x7.4x2.2x
Thu, 07 Nov 2024UK£265.0bUK£121.3bUK£36.3b4.9x7.3x2.2x
Sat, 05 Oct 2024UK£217.9bUK£95.9bUK£30.3b6x7.2x2.3x
Mon, 02 Sep 2024UK£217.8bUK£97.5bUK£30.6b6.2x7.1x2.2x
Wed, 31 Jul 2024UK£222.9bUK£97.1bUK£31.3b6.7x7.1x2.3x
Fri, 28 Jun 2024UK£217.6bUK£97.6bUK£31.6b5.9x6.9x2.2x
Sun, 26 May 2024UK£221.3bUK£97.3bUK£31.3b6.1x7.1x2.3x
Tue, 23 Apr 2024UK£233.8bUK£122.6bUK£37.0b5.4x6.3x1.9x
Thu, 21 Mar 2024UK£222.7bUK£120.6bUK£36.3b6.2x6.1x1.8x
Sat, 17 Feb 2024UK£194.4bUK£107.2bUK£36.9b5.3x5.3x1.8x
Mon, 15 Jan 2024UK£194.1bUK£109.2bUK£37.4b5.4x5.2x1.8x
Wed, 13 Dec 2023UK£194.3bUK£110.2bUK£37.7b5.4x5.1x1.8x
Fri, 10 Nov 2023UK£190.2bUK£111.1bUK£38.1b5.2x5x1.7x
Sun, 08 Oct 2023UK£207.5bUK£104.6bUK£34.7b5x6x2x
Tue, 05 Sep 2023UK£194.4bUK£102.8bUK£34.1b5.3x5.7x1.9x
Thu, 03 Aug 2023UK£206.9bUK£97.2bUK£32.6b5.2x6.3x2.1x
Sat, 01 Jul 2023UK£227.1bUK£120.2bUK£37.7b5.3x6x1.9x
Mon, 29 May 2023UK£229.2bUK£125.2bUK£38.1b5.6x6x1.8x
Wed, 26 Apr 2023UK£222.2bUK£115.4bUK£30.4b6.3x7.3x1.9x
Fri, 24 Mar 2023UK£216.9bUK£116.0bUK£30.5b6.1x7.1x1.9x
Sun, 19 Feb 2023UK£246.6bUK£112.7bUK£28.0b5.5x8.8x2.2x
Tue, 17 Jan 2023UK£212.0bUK£87.6bUK£21.6b7.1x9.8x2.4x
Thu, 15 Dec 2022UK£182.8bUK£87.0bUK£21.5b6.6x8.5x2.1x
Sat, 12 Nov 2022UK£173.6bUK£90.0bUK£22.0b5.9x7.9x1.9x
Mon, 10 Oct 2022UK£170.7bUK£94.4bUK£24.4b5.5x7x1.8x
Wed, 07 Sep 2022UK£189.1bUK£92.4bUK£23.9b6.3x7.9x2x
Price to Earnings Ratio

7.9x


Total Market Cap: UK£189.1bTotal Earnings: UK£23.9bTotal Revenue: UK£92.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 7.8x202320242025
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 10.1x which is higher than its 3-year average PE of 7.8x.
  • The 3-year average PS ratio of 2.3x is lower than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 13% per year over the last three years.
  • Revenues for these companies have grown 9.6% 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 Market2.72%
Financials-3.08%
Banks-3.82%
Diversified Banks-3.81%
Regional Banks-8.67%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 7.8x.
    • Analysts are expecting annual earnings growth of 8.3%, which is higher than its past year's earnings growth of 2.4% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 18.1x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 29% over the next 5 years.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 8.3% 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
ARBB Arbuthnot Banking GroupUK£10.655.2%
+UK£8.6m		11.2%PB0.6x

Latest News

BGEO
UK£73.30
Lion Finance Group
7D
-2.8%
1Y
61.1%

Digital Transformation And Emerging Markets Will Unlock Opportunities

The consensus analyst price target for Lion Finance Group has increased to £90.39, reflecting improved revenue growth forecasts and a notable decline in future P/E, which points to enhanced earnings expectations and valuation multiples. What's in the News Declared a cumulative interim dividend of GEL 5.10 per ordinary share for periods ended March and June 2025, payable in Pounds Sterling.
NWG
UK£5.11
NatWest Group
7D
-9.2%
1Y
47.9%

Digital Transformation And Sustainable Finance Will Drive Progress

NatWest Group’s consensus price target has been modestly raised to £5.91, reflecting analyst confidence in improved earnings visibility, stable UK economic conditions, operational efficiency, and capital return potential. Analyst Commentary Bullish analysts cite improved earnings visibility and confidence in NatWest’s underlying profitability as drivers for higher price targets.
STAN
UK£13.86
Standard Chartered
7D
-2.2%
1Y
77.8%
TBCG
UK£43.75
TBC Bank Group
7D
-4.7%
1Y
38.9%

Digital Banking Expansion In Uzbekistan And Georgia Will Unlock Opportunities

TBC Bank Group’s consensus price target has been revised upward, primarily reflecting a sharp decrease in its forecasted future P/E multiple while revenue growth expectations remain steady, resulting in an increased fair value from £57.09 to £59.11. What's in the News Declared a second quarter 2025 dividend of GEL 1.75 per share, payable in Pounds Sterling.
BARC
UK£3.60
Barclays
7D
-4.3%
1Y
57.8%
ARBB
UK£10.65
Arbuthnot Banking Group
7D
5.2%
1Y
11.2%
MTRO
UK£1.18
Metro Bank Holdings
7D
-8.7%
1Y
93.4%
LLOY
UK£0.80
Lloyds Banking Group
7D
-5.4%
1Y
35.9%
HSBA
UK£9.47
HSBC Holdings
7D
-2.1%
1Y
42.0%