Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Banks Industry Analysis

UpdatedJun 03, 2026
DataAggregated Company Financials
Companies13
  • 7D1.6%
  • 3M7.8%
  • 1Y48.2%
  • YTD8.6%

The Banks industry is up 2.0% in the last week, with HSBC Holdings up 1.7%. This means that the industry has gained 47% over the past year. 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, 03 Jun 2026UK£475.6bUK£133.1bUK£39.1b8.6x12.2x3.6x
Fri, 01 May 2026UK£456.4bUK£131.6bUK£38.6b9x11.8x3.5x
Sun, 29 Mar 2026UK£406.4bUK£132.2bUK£38.6b8.3x10.5x3.1x
Tue, 24 Feb 2026UK£456.2bUK£127.0bUK£34.9b9.2x13.1x3.6x
Thu, 22 Jan 2026UK£447.5bUK£125.3bUK£33.8b9.7x13.2x3.6x
Sat, 20 Dec 2025UK£432.6bUK£125.5bUK£33.8b9.3x12.8x3.4x
Mon, 17 Nov 2025UK£401.8bUK£126.4bUK£34.0b8.5x11.8x3.2x
Wed, 15 Oct 2025UK£365.3bUK£122.2bUK£34.6b8.8x10.6x3x
Fri, 12 Sep 2025UK£365.9bUK£121.4bUK£34.3b8.8x10.7x3x
Sun, 10 Aug 2025UK£351.2bUK£121.7bUK£34.4b8.7x10.2x2.9x
Tue, 08 Jul 2025UK£329.1bUK£120.7bUK£34.3b8.4x9.6x2.7x
Thu, 05 Jun 2025UK£326.5bUK£121.0bUK£34.4b8.2x9.5x2.7x
Sat, 03 May 2025UK£310.7bUK£121.2bUK£34.2b7.6x9.1x2.6x
Mon, 31 Mar 2025UK£321.4bUK£124.6bUK£37.0b7.9x8.7x2.6x
Wed, 26 Feb 2025UK£320.7bUK£125.7bUK£37.4b6.6x8.6x2.6x
Fri, 24 Jan 2025UK£297.6bUK£124.1bUK£37.3b5x8x2.4x
Sun, 22 Dec 2024UK£269.5bUK£123.0bUK£36.9b4.9x7.3x2.2x
Tue, 19 Nov 2024UK£266.1bUK£122.7bUK£36.8b5x7.2x2.2x
Thu, 17 Oct 2024UK£216.8bUK£96.5bUK£30.5b6.1x7.1x2.2x
Sat, 14 Sep 2024UK£213.6bUK£97.5bUK£30.7b5.9x7x2.2x
Mon, 12 Aug 2024UK£209.9bUK£99.0bUK£31.2b6.1x6.7x2.1x
Wed, 10 Jul 2024UK£215.2bUK£96.9bUK£31.3b6x6.9x2.2x
Fri, 07 Jun 2024UK£219.8bUK£97.0bUK£31.4b6.3x7x2.3x
Sun, 05 May 2024UK£222.6bUK£98.2bUK£31.6b5.7x7x2.3x
Tue, 02 Apr 2024UK£229.4bUK£121.4bUK£36.6b5.5x6.3x1.9x
Thu, 29 Feb 2024UK£219.1bUK£120.8bUK£36.5b6x6x1.8x
Sat, 27 Jan 2024UK£194.2bUK£109.4bUK£37.5b5.4x5.2x1.8x
Mon, 25 Dec 2023UK£200.9bUK£109.3bUK£37.4b5.2x5.4x1.8x
Wed, 22 Nov 2023UK£194.3bUK£110.0bUK£37.8b5.1x5.1x1.8x
Fri, 20 Oct 2023UK£205.6bUK£105.2bUK£34.9b5x5.9x2x
Sun, 17 Sep 2023UK£204.1bUK£104.0bUK£34.5b5.4x5.9x2x
Tue, 15 Aug 2023UK£204.5bUK£102.0bUK£33.8b5.4x6.1x2x
Thu, 13 Jul 2023UK£226.8bUK£118.9bUK£37.3b5.3x6.1x1.9x
Sat, 10 Jun 2023UK£225.7bUK£121.4bUK£37.9b5.7x6x1.9x
Price to Earnings Ratio

6x


Total Market Cap: UK£225.7bTotal Earnings: UK£37.9bTotal Revenue: UK£121.4bTotal 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 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 3.1% 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-0.85%
Financials0.15%
Banks1.61%
Regional Banks2.32%
Diversified Banks1.61%
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£14.101.7%
+UK£4.1b		61.0%PB1.7x
BARC BarclaysUK£4.703.7%
+UK£2.2b		42.8%PB0.8x
STAN Standard CharteredUK£20.634.3%
+UK£1.8b		80.1%PB1.2x
NWG NatWest GroupUK£5.980.3%
+UK£143.2m		12.3%PB1.1x
MTRO Metro Bank HoldingsUK£1.719.0%
+UK£95.6m		48.6%PB0.8x

Latest News

STB
UK£12.86
Secure Trust Bank
7D
-0.6%
1Y
82.2%
BGEO
UK£109.20
Lion Finance Group
7D
0.3%
1Y
62.0%
Narrative Update • Jun 01

BGEO: Index Promotion And Expanded Buybacks Will Support Higher Future Multiple

Analysts have maintained their £131 price target on Lion Finance Group, pointing to small adjustments in the discount rate, revenue growth, profit margin and forward P/E assumptions rather than a fundamental shift in their view of the stock. What's in the News Lion Finance Group PLC was added to the FTSE 100 Index, according to index review announcements.
CBG
UK£4.51
Close Brothers Group
7D
-1.8%
1Y
38.4%
Narrative Update • Jun 01

CBG: UBS Upgrade And Stable Margins Will Support Higher P/E

Analysts have nudged their price target on Close Brothers Group slightly higher, now implying a fair value of about £5.31 per share versus £5.29 previously. This reflects updated views on discount rates, long term revenue growth, profit margins and future P/E multiples following recent research such as the UBS upgrade.
STAN
UK£20.63
Standard Chartered
7D
4.3%
1Y
80.1%
HSBA
UK£14.10
HSBC Holdings
7D
1.7%
1Y
61.0%
LLOY
UK£1.00
Lloyds Banking Group
7D
-1.4%
1Y
29.9%
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£4.70
Barclays
7D
3.7%
1Y
42.8%
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).
SHAW
UK£3.04
Shawbrook Group
7D
-2.1%
1Y
n/a
ARBB
UK£8.50
Arbuthnot Banking Group
7D
4.0%
1Y
-8.6%
HSBK
US$31.00
Halyk Bank of Kazakhstan
7D
-0.8%
1Y
37.2%
NWG
UK£5.98
NatWest Group
7D
0.3%
1Y
12.3%
TBCG
UK£44.36
TBC Bank Group
7D
-0.5%
1Y
0.1%
Narrative Update • May 15

TBCG: Dividend Continuity And Leadership Transition Will Support Future Upside

Analysts have trimmed their fair value estimate for TBC Bank Group from £55.35 to £54.78, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E multiples. What's in the News TBC Bank Group PLC plans to appoint Guy Stevens as Group Chief Financial Officer, effective 13 July 2026.
MTRO
UK£1.71
Metro Bank Holdings
7D
9.0%
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.