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U.K. (FTSE) Banks Industry Analysis

UpdatedJun 08, 2026
DataAggregated Company Financials
Companies13
  • 7D-1.2%
  • 3M5.6%
  • 1Y42.6%
  • YTD5.3%

Over the last 7 days, the Banks industry has dropped 2.1%, driven by HSBC Holdings declining 2.4%. In the past year, the industry has gained 43%. 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, 08 Jun 2026UK£461.4bUK£133.8bUK£39.3b8.6x11.7x3.4x
Wed, 06 May 2026UK£435.5bUK£132.5bUK£39.1b8.4x11.1x3.3x
Fri, 03 Apr 2026UK£431.6bUK£132.6bUK£38.7b8.7x11.2x3.3x
Sun, 01 Mar 2026UK£472.1bUK£131.1bUK£38.3b8.8x12.3x3.6x
Tue, 27 Jan 2026UK£451.9bUK£124.2bUK£33.5b10x13.5x3.6x
Thu, 25 Dec 2025UK£443.0bUK£127.5bUK£34.6b8.9x12.8x3.5x
Sat, 22 Nov 2025UK£381.7bUK£126.7bUK£34.1b8.3x11.2x3x
Mon, 20 Oct 2025UK£352.1bUK£121.7bUK£34.5b8.2x10.2x2.9x
Wed, 17 Sep 2025UK£363.2bUK£121.0bUK£34.2b8.7x10.6x3x
Fri, 15 Aug 2025UK£359.4bUK£121.3bUK£34.3b9.2x10.5x3x
Sun, 13 Jul 2025UK£334.8bUK£121.1bUK£34.4b8.5x9.7x2.8x
Tue, 10 Jun 2025UK£330.5bUK£121.0bUK£34.4b8.4x9.6x2.7x
Thu, 08 May 2025UK£309.0bUK£121.7bUK£34.7b7.7x8.9x2.5x
Sat, 05 Apr 2025UK£277.8bUK£124.9bUK£37.1b6.7x7.5x2.2x
Mon, 03 Mar 2025UK£335.0bUK£126.0bUK£37.6b7.5x8.9x2.7x
Wed, 29 Jan 2025UK£293.3bUK£123.7bUK£37.2b5.2x7.9x2.4x
Fri, 27 Dec 2024UK£273.0bUK£123.3bUK£37.0b4.9x7.4x2.2x
Sun, 24 Nov 2024UK£263.2bUK£123.3bUK£37.1b4.9x7.1x2.1x
Tue, 22 Oct 2024UK£218.3bUK£96.5bUK£30.6b6x7.1x2.3x
Thu, 19 Sep 2024UK£213.6bUK£97.2bUK£30.6b5.9x7x2.2x
Sat, 17 Aug 2024UK£216.6bUK£98.2bUK£30.9b6x7x2.2x
Mon, 15 Jul 2024UK£216.7bUK£96.1bUK£31.1b6.1x7x2.3x
Wed, 12 Jun 2024UK£213.4bUK£97.2bUK£31.4b6x6.8x2.2x
Fri, 10 May 2024UK£222.2bUK£98.3bUK£31.7b5.9x7x2.3x
Sun, 07 Apr 2024UK£237.2bUK£121.3bUK£36.6b5.5x6.5x2x
Tue, 05 Mar 2024UK£221.8bUK£120.7bUK£36.4b6.1x6.1x1.8x
Thu, 01 Feb 2024UK£194.7bUK£109.6bUK£37.5b5.4x5.2x1.8x
Sat, 30 Dec 2023UK£203.0bUK£109.1bUK£37.4b5.1x5.4x1.9x
Mon, 27 Nov 2023UK£192.9bUK£109.9bUK£37.6b4.8x5.1x1.8x
Wed, 25 Oct 2023UK£198.5bUK£105.1bUK£34.9b4.8x5.7x1.9x
Fri, 22 Sep 2023UK£207.2bUK£104.4bUK£34.6b5.4x6x2x
Sun, 20 Aug 2023UK£194.7bUK£102.1bUK£33.8b5.2x5.8x1.9x
Tue, 18 Jul 2023UK£228.1bUK£118.6bUK£37.1b5.4x6.1x1.9x
Thu, 15 Jun 2023UK£229.3bUK£120.8bUK£37.7b5.5x6.1x1.9x
Price to Earnings Ratio

6.1x


Total Market Cap: UK£229.3bTotal Earnings: UK£37.7bTotal Revenue: UK£120.8bTotal 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 11.7x 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 3.4% 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-0.10%
Financials-1.12%
Banks-1.21%
Diversified Banks-1.20%
Regional Banks-2.77%
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 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% 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
BARC BarclaysUK£4.580.6%
+UK£386.1m		37.7%PB0.8x
NWG NatWest GroupUK£5.940.5%
+UK£238.7m		12.8%PB1.1x
SHAW Shawbrook GroupUK£3.061.2%
+UK£18.2m		n/aPB0.9x
CBG Close Brothers GroupUK£4.530.4%
+UK£3.0m		35.3%PB0.4x
ARBB Arbuthnot Banking GroupUK£8.401.8%
+UK£2.4m		-11.8%PB0.5x

Latest News

BGEO
UK£105.50
Lion Finance Group
7D
-3.7%
1Y
51.9%
STB
UK£12.54
Secure Trust Bank
7D
-2.3%
1Y
64.6%
Narrative Update • Jun 06

STB: Higher Assumed Revenue And Multiple Will Drive Future Upside Potential

Analysts have raised their price target on Secure Trust Bank from £18 to £20, citing updated assumptions for revenue growth, profit margins and a higher future P/E multiple in their latest models. What's in the News Secure Trust Bank PLC plans for Chief Financial Officer Rachel Lawrence to retire during the first half of 2027 after a career of over 35 years, following her appointment as CFO in September 2020.
NWG
UK£5.94
NatWest Group
7D
0.5%
1Y
12.8%
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£13.61
HSBC Holdings
7D
-1.6%
1Y
53.6%
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£43.78
TBC Bank Group
7D
-1.0%
1Y
-3.2%
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$30.85
Halyk Bank of Kazakhstan
7D
-0.6%
1Y
36.8%
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
-8.0%
1Y
39.4%
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.
BARC
UK£4.58
Barclays
7D
0.6%
1Y
37.7%
New Narrative • Jun 03

Why Is Barclays Trading Below Book Value?

Barclays is currently trading at a price-to-book ratio of around 0.8, depending on the source used. In simple terms, this means that for every £100 of net assets attributable to shareholders on Barclays' balance sheet, the market is valuing those assets at approximately £80.
STAN
UK£19.33
Standard Chartered
7D
-3.8%
1Y
63.5%
Narrative Update • Jun 02

STAN: Fair Value Now Balances Execution Risks And Capital Return Prospects

Standard Chartered's analyst fair value estimate has been raised from £19.48 to £21.07. This reflects a series of higher price targets and rating upgrades from major banks as analysts factor in updated assumptions on growth, margins and future P/E multiples.
CBG
UK£4.53
Close Brothers Group
7D
0.4%
1Y
35.3%
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.
LLOY
UK£0.99
Lloyds Banking Group
7D
-0.9%
1Y
28.8%
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).
SHAW
UK£3.06
Shawbrook Group
7D
1.2%
1Y
n/a
ARBB
UK£8.40
Arbuthnot Banking Group
7D
1.8%
1Y
-11.8%