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U.K. (FTSE) Banks Industry Analysis

UpdatedApr 21, 2026
DataAggregated Company Financials
Companies13
  • 7D1.7%
  • 3M3.1%
  • 1Y61.1%
  • YTD4.9%

In the last week, the Banks industry is up 1.7%, with HSBC Holdings up 1.3%. This means that the industry has gained 61% over the past year. As for the next few years, earnings are expected to grow by 9.7% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 21 Apr 2026UK£461.6bUK£131.1bUK£38.2b9.3x12.1x3.5x
Thu, 19 Mar 2026UK£420.3bUK£132.3bUK£38.6b8.8x10.9x3.2x
Sat, 14 Feb 2026UK£438.9bUK£125.9bUK£34.5b9.3x12.7x3.5x
Mon, 12 Jan 2026UK£440.8bUK£125.4bUK£33.8b10x13x3.5x
Wed, 10 Dec 2025UK£404.1bUK£125.8bUK£33.9b9.2x11.9x3.2x
Fri, 07 Nov 2025UK£398.6bUK£126.6bUK£34.0b8.6x11.7x3.1x
Sun, 05 Oct 2025UK£378.4bUK£121.5bUK£34.4b9.1x11x3.1x
Tue, 02 Sep 2025UK£351.4bUK£121.5bUK£34.4b8.6x10.2x2.9x
Thu, 31 Jul 2025UK£349.1bUK£123.1bUK£35.4b9.4x9.9x2.8x
Sat, 28 Jun 2025UK£330.3bUK£120.3bUK£34.1b8.5x9.7x2.7x
Mon, 26 May 2025UK£326.8bUK£121.0bUK£34.4b8.2x9.5x2.7x
Wed, 23 Apr 2025UK£296.5bUK£122.7bUK£36.4b7.5x8.2x2.4x
Fri, 21 Mar 2025UK£320.8bUK£124.1bUK£36.7b8.2x8.7x2.6x
Sun, 16 Feb 2025UK£306.7bUK£123.8bUK£38.1b6.2x8.1x2.5x
Tue, 14 Jan 2025UK£275.4bUK£125.1bUK£37.7b4.6x7.3x2.2x
Thu, 12 Dec 2024UK£271.9bUK£122.1bUK£36.6b5x7.4x2.2x
Sat, 09 Nov 2024UK£255.6bUK£121.2bUK£36.2b4.9x7.1x2.1x
Mon, 07 Oct 2024UK£217.7bUK£95.9bUK£30.3b6x7.2x2.3x
Wed, 04 Sep 2024UK£213.5bUK£97.6bUK£30.7b6.2x7x2.2x
Fri, 02 Aug 2024UK£213.7bUK£95.1bUK£31.2b6.2x6.9x2.2x
Sun, 30 Jun 2024UK£215.3bUK£97.6bUK£31.6b6x6.8x2.2x
Tue, 28 May 2024UK£221.4bUK£97.2bUK£31.3b6.1x7.1x2.3x
Thu, 25 Apr 2024UK£239.9bUK£121.9bUK£36.4b5.5x6.6x2x
Sat, 23 Mar 2024UK£230.2bUK£121.4bUK£36.6b5.2x6.3x1.9x
Mon, 19 Feb 2024UK£194.4bUK£106.9bUK£36.8b5.3x5.3x1.8x
Wed, 17 Jan 2024UK£184.8bUK£109.8bUK£37.6b5.2x4.9x1.7x
Fri, 15 Dec 2023UK£200.5bUK£109.1bUK£37.3b5.5x5.4x1.8x
Sun, 12 Nov 2023UK£188.5bUK£111.4bUK£38.2b5.1x4.9x1.7x
Tue, 10 Oct 2023UK£200.9bUK£104.6bUK£34.7b5x5.8x1.9x
Thu, 07 Sep 2023UK£192.7bUK£103.4bUK£34.3b5.2x5.6x1.9x
Sat, 05 Aug 2023UK£207.3bUK£101.7bUK£33.6b5.2x6.2x2x
Mon, 03 Jul 2023UK£227.2bUK£120.2bUK£37.7b5.3x6x1.9x
Wed, 31 May 2023UK£225.9bUK£125.2bUK£38.2b5.7x5.9x1.8x
Fri, 28 Apr 2023UK£226.9bUK£115.5bUK£30.4b6.3x7.5x2x
Price to Earnings Ratio

7.5x


Total Market Cap: UK£226.9bTotal Earnings: UK£30.4bTotal Revenue: UK£115.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Banks Industry Price to Earnings3Y Average 8x202420252026
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 8.0x.
  • The 3-year average PS ratio of 2.4x is lower than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 7.9% per year over the last three years.
  • Revenues for these companies have grown 4.3% 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 Market0.61%
Financials1.99%
Banks1.71%
Regional Banks4.56%
Diversified Banks1.70%
Industry PE
  • Investors are most optimistic about the Regional Banks industry even though it's trading below its 3-year average PE ratio of 20.4x.
    • Analysts are expecting annual earnings growth of 27.8%, which is higher than its past year's earnings growth of 5.7% per year.
  • Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 8.0x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 28% 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 9.6% 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£13.501.3%
+UK£2.9b		71.1%PB1.6x
STAN Standard CharteredUK£18.024.8%
+UK£1.8b		77.3%PB1x
LLOY Lloyds Banking GroupUK£1.032.1%
+UK£1.2b		46.2%PB1.3x
BARC BarclaysUK£4.431.8%
+UK£940.9m		59.7%PB0.8x
HSBK Halyk Bank of KazakhstanUS$35.306.3%
+US$568.9m		61.9%PB1.3x

Latest News

STAN
UK£18.02
Standard Chartered
7D
4.8%
1Y
77.3%
HSBK
US$35.30
Halyk Bank of Kazakhstan
7D
6.3%
1Y
61.9%

HSBK: Stable Margins And Lower Discount Rate Will Sustain Overvaluation

Analysts have maintained their $31.90 price target for Halyk Bank of Kazakhstan, citing a slightly lower discount rate and a marginally reduced future P/E assumption as the main factors in their updated valuation analysis. Valuation Changes Fair Value: $31.90 remains unchanged in the updated assessment.
TBCG
UK£50.60
TBC Bank Group
7D
5.6%
1Y
18.2%
HSBA
UK£13.50
HSBC Holdings
7D
1.3%
1Y
71.1%

HSBA: Future Returns Will Depend On Conviction List Status And Cost Discipline

Analysts have raised HSBC Holdings' price targets by £170 to £290 per share in recent weeks, supported by updated models that show relatively stable fair value, discount rate, revenue growth, profit margin and future P/E assumptions. The stock has also been added to a key European conviction list.
NWG
UK£6.07
NatWest Group
7D
-0.9%
1Y
32.4%

NWG: Evelyn Acquisition And Buybacks Will Support Future Share Upside

NatWest Group's updated analyst price target has inched higher to £7.32 from £7.31. This reflects a blend of recent target increases from several banks and more cautious expectations from others, as analysts factor in slightly different views on revenue growth, profitability and valuation multiples.
BGEO
UK£116.10
Lion Finance Group
7D
6.0%
1Y
115.8%

BGEO: Higher Rating And Capital Returns Will Support Future Balanced Outcomes

Analysts have lifted their price target for Lion Finance Group to £13,100 from £10,700, reflecting updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E. Analyst Commentary JPMorgan lifting its price target for Lion Finance Group to £13,100 from £10,700 signals a reassessment of what bullish analysts see as fair value, based on updated assumptions for growth, profitability and the appropriate discount rate.
BARC
UK£4.43
Barclays
7D
1.8%
1Y
59.7%

BARC: Evelyn Bid And Wealth Expansion Will Support Stronger Future Returns

Analysts have nudged their price target on Barclays slightly higher, from £5.30 to roughly £5.30, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E levels as support for the revised view. What's in the News Barclays and Sage agreed a new partnership aimed at helping UK small businesses manage day-to-day administration, improve visibility of their finances and keep up with Making Tax Digital requirements through combined banking and accounting tools (Client announcement).
LLOY
UK£1.03
Lloyds Banking Group
7D
2.1%
1Y
46.2%

LLOY: Buyback And Dividend Policy Will Support A More Attractive Return Profile

Analysts have lifted their price target for Lloyds Banking Group by around £0.02, reflecting small adjustments to fair value estimates, discount rate assumptions, revenue growth expectations, and a lower future P/E multiple in their models. What's in the News The Board of Lloyds Banking Group has authorized a share buyback plan, allowing the company to repurchase its own shares as part of a capital management program, subject to regulatory approval (Key Developments).
ARBB
UK£8.60
Arbuthnot Banking Group
7D
-2.8%
1Y
-6.0%
SHAW
UK£3.74
Shawbrook Group
7D
5.7%
1Y
n/a