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U.K. (FTSE) Financials Sector Analysis

UpdatedJun 11, 2026
DataAggregated Company Financials
Companies197
  • 7D-3.4%
  • 3M4.4%
  • 1Y19.4%
  • YTD-0.1%

Over the last 7 days, the Financials industry has dropped 4.4%, driven by HSBC Holdings declining 7.1%. Over the past 12 months, the industry was up 20%. Looking forward, earnings are forecast to grow by 11% annually.

Sector Valuation and Performance

Has the U.K. Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 11 Jun 2026UK£691.8bUK£313.0bUK£60.3b11.2x11.5x2.2x
Sat, 09 May 2026UK£708.2bUK£311.7bUK£62.1b11.9x11.4x2.3x
Mon, 06 Apr 2026UK£681.4bUK£311.9bUK£61.9b12x11x2.2x
Wed, 04 Mar 2026UK£691.4bUK£289.9bUK£59.8b12.4x11.6x2.4x
Fri, 30 Jan 2026UK£720.3bUK£266.9bUK£53.9b13.5x13.4x2.7x
Sun, 28 Dec 2025UK£693.3bUK£268.6bUK£54.3b12.5x12.8x2.6x
Tue, 25 Nov 2025UK£636.4bUK£271.8bUK£55.4b12.3x11.5x2.3x
Thu, 23 Oct 2025UK£631.9bUK£264.5bUK£54.4b12.3x11.6x2.4x
Sat, 20 Sep 2025UK£627.2bUK£264.0bUK£54.1b11.9x11.6x2.4x
Mon, 18 Aug 2025UK£619.6bUK£265.5bUK£52.3b12.5x11.8x2.3x
Wed, 16 Jul 2025UK£609.6bUK£273.1bUK£52.1b11.9x11.7x2.2x
Fri, 13 Jun 2025UK£595.3bUK£276.7bUK£52.0b11.7x11.4x2.2x
Sun, 11 May 2025UK£579.6bUK£278.1bUK£50.2b11.2x11.5x2.1x
Tue, 08 Apr 2025UK£499.5bUK£283.2bUK£53.2b9.6x9.4x1.8x
Thu, 06 Mar 2025UK£611.2bUK£299.4bUK£53.3b10.6x11.5x2x
Sat, 01 Feb 2025UK£583.6bUK£298.6bUK£54.0b11.1x10.8x2x
Mon, 30 Dec 2024UK£541.4bUK£297.5bUK£53.4b10.9x10.1x1.8x
Wed, 27 Nov 2024UK£527.4bUK£298.2bUK£54.1b10.2x9.7x1.8x
Fri, 25 Oct 2024UK£509.8bUK£293.6bUK£51.2b11.5x9.9x1.7x
Sun, 22 Sep 2024UK£466.9bUK£269.3bUK£46.6b11.2x10x1.7x
Tue, 20 Aug 2024UK£475.2bUK£266.4bUK£48.2b11.8x9.9x1.8x
Thu, 18 Jul 2024UK£454.4bUK£239.5bUK£46.8b11.9x9.7x1.9x
Sat, 15 Jun 2024UK£446.2bUK£241.2bUK£47.0b12.1x9.5x1.8x
Mon, 13 May 2024UK£458.7bUK£242.2bUK£47.7b12.9x9.6x1.9x
Wed, 10 Apr 2024UK£466.2bUK£265.4bUK£53.1b11.7x8.8x1.8x
Fri, 08 Mar 2024UK£449.5bUK£241.5bUK£54.3b13x8.3x1.9x
Sun, 04 Feb 2024UK£390.4bUK£188.6bUK£51.5b12.5x7.6x2.1x
Tue, 02 Jan 2024UK£406.1bUK£188.0bUK£51.4b13.4x7.9x2.2x
Thu, 30 Nov 2023UK£385.6bUK£188.2bUK£51.5b12.4x7.5x2x
Sat, 28 Oct 2023UK£361.2bUK£185.4bUK£49.4b11.3x7.3x1.9x
Mon, 25 Sep 2023UK£397.9bUK£182.6bUK£48.2b12.8x8.3x2.2x
Wed, 23 Aug 2023UK£373.6bUK£179.2bUK£47.4b12.5x7.9x2.1x
Fri, 21 Jul 2023UK£421.2bUK£180.2bUK£50.9b12.4x8.3x2.3x
Sun, 18 Jun 2023UK£414.9bUK£177.6bUK£51.1b12.7x8.1x2.3x
Price to Earnings Ratio

8.1x


Total Market Cap: UK£414.9bTotal Earnings: UK£51.1bTotal Revenue: UK£177.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 10.1x202420252026
Current Industry PE
  • Investors are optimistic on the British Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 11.6x which is higher than its 3-year average PE of 10.1x.
  • The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 5.6% per year over the last three years.
  • Revenues for these companies have grown 21% 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 sector?

GB Market-1.01%
Financials-3.42%
Capital Markets1.86%
Consumer Finance0.71%
Mortgage Finance0%0
Diversified Financial-0.41%
Insurance-2.53%
Banks-5.37%
Industry PE
  • Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 2.8x.
    • Analysts expect its future annual earnings growth (10.2%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Consumer Finance industry, which is trading below its 3-year average of 23.2x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings decline of 5.2% per year.
  • In contrast, the 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
LSEG London Stock Exchange GroupUK£90.143.6%
+UK£1.4b		-19.6%PE35.2x
ADM Admiral GroupUK£34.286.9%
+UK£671.3m		3.1%PE14x
III 3i GroupUK£21.872.6%
+UK£570.0m		-48.4%PE4.2x
IGG IG Group HoldingsUK£19.024.9%
+UK£291.1m		77.8%PE12.6x
LGEN Legal & General GroupUK£2.731.9%
+UK£263.6m		6.8%PE31.5x

Latest News

III
UK£21.87
3i Group
7D
2.6%
1Y
-48.4%
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%
LGEN
UK£2.73
Legal & General Group
7D
1.9%
1Y
6.8%
Narrative Update • Jun 09

LGEN: Execution Risks And Lower P/E Assumptions Will Pressure Future Upside

Analysts have adjusted their price target for Legal & General to reflect a fair value move from £2.10 to £1.85, citing updated assumptions on growth, margins and P/E multiples following a combination of recent target changes and a downgrade in Street research. Analyst Commentary Recent Street research presents a mixed picture around Legal & General, with some bearish analysts highlighting risks that could justify more conservative valuation assumptions.
BARC
UK£4.46
Barclays
7D
-3.0%
1Y
38.0%
CMCX
UK£4.55
CMC Markets
7D
23.6%
1Y
75.3%
Analysis Article • Jun 07

This Just In: Analysts Are Boosting Their CMC Markets Plc (LON:CMCX) Outlook for This Year

CMC Markets Plc ( LON:CMCX ) shareholders will have a reason to smile today, with the analysts making substantial...
IGG
UK£19.02
IG Group Holdings
7D
4.9%
1Y
77.8%
Narrative Update • Jun 06

IGG: Future Revenue Execution And Volatility Exposure Will Shape Fair Value

Narrative Update IG Group Holdings' indicative fair value has moved from £14.78 to £16.85. This change is supported by analysts lifting price targets into a £1,750 to £1,850 range and citing updated assumptions for revenue growth, profit margins and future P/E multiples.
WISE
UK£7.92
Wise Group
7D
-2.2%
1Y
-25.6%
Narrative Update • Jun 06

WISE: Revised Discount Rates And P/E Assumptions Will Shape Future Upside And Risk

Analysts have updated their view on Wise Group with a revised price target that reflects recent moves from both JPMorgan, which raised its target by £0.35, and UBS, which lowered its target by £0.80, citing adjustments to discount rates, revenue growth expectations, profit margins, and future P/E assumptions. Analyst Commentary Recent research shows a split in sentiment on Wise Group, with JPMorgan lifting its price target by £0.35 while Bearish analysts cut their target by £0.80.
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.
STJ
UK£11.29
St. James's Place
7D
-3.3%
1Y
1.8%
Narrative Update • Jun 06

STJ: Future Capital Generation And Higher P E Will Support Upside Potential

Analysts trimmed their average price target on St. James's Place by a small amount, reflecting recent mixed target moves, where cuts of £0.20 to £1.00 were partly offset by at least one increase of £2.00, and a slightly lower fair value and P/E assumption in updated models. Analyst Commentary Recent Street research on St. James's Place has focused on recalibrating price targets in light of updated assumptions and model tweaks, resulting in several cuts alongside one sizeable increase to £20.00 from Deutsche Bank.
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.
AV.
UK£6.13
Aviva
7D
1.3%
1Y
-0.2%
Narrative Update • Jun 05

AV.: Retirement Savings Position And Direct Line Synergies Will Support Medium Term Upside

Narrative Update on Aviva Analysts have nudged the price target on Aviva slightly lower to around £7.15 to £7.65, reflecting a mix of views that balance JPMorgan's recent cut to £7.15, Berenberg's new £8.00 Buy initiation, and Deutsche Bank's modest lift to £7.65 as they weigh Aviva's position in the growing pool of UK retirement savings assets against more cautious sector views. Analyst Commentary Recent research on Aviva presents a mixed picture, with some analysts leaning positive on growth opportunities in UK retirement savings and others more cautious on execution and valuation.
LSEG
UK£90.14
London Stock Exchange Group
7D
3.6%
1Y
-19.6%
PRU
UK£9.26
Prudential
7D
-12.2%
1Y
3.0%
Narrative Update • Jun 04

PRU: Capital Returns And India Insurance Deal Prospects Will Drive Re Rating

Prudential's updated analyst price target now sits at about £12.20, a small uplift from roughly £12.00, as analysts adjust their models for slightly higher assumed revenue growth and P/E multiples while tempering margin expectations, in line with a mix of recent target raises and trims across the Street. Analyst Commentary Recent Street research around Prudential reflects a split view, with some large houses lifting targets while others trim them, keeping the overall tone balanced rather than clearly bullish or bearish.
ADM
UK£34.28
Admiral Group
7D
6.9%
1Y
3.1%
Narrative Update • Jun 02

ADM: Clearer Multi Year Earnings Outlook Will Support Favourable UK Motor Pricing

Admiral Group's analyst price targets have moved higher, with recent increases to around £32.77 to £38.00 per share. Analysts point to a clearer multi year profit outlook and expectations for more favourable UK motor pricing.
SDLF
UK£7.73
Standard Life
7D
2.8%
1Y
17.5%
Narrative Update • Jun 02

SDLF: Capital Light Shift And Aegon Deal Will Shape Future Return Profile

Standard Life's analyst price target has been lifted from £6.20 to £9.50 per share, with analysts citing the expected benefits from the Aegon UK acquisition and the company's capital light growth profile as key drivers of the rerating. Analyst Commentary Recent Street research has focused on the impact of the Aegon UK transaction, the shift toward a capital light growth profile, and how these factors feed into Standard Life's valuation and execution risk.