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U.K. (FTSE) Financials Sector Analysis

UpdatedFeb 04, 2026
DataAggregated Company Financials
Companies203
  • 7D1.4%
  • 3M10.4%
  • 1Y36.0%
  • YTD4.7%

In the last week, the Financials industry is up 1.4%, with Lloyds Banking Group leading the way, up 7.0%. During this same period, the London Stock Exchange Group underperformed, falling 13%. This means that the industry has gained 36% over the past year. 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, 05 Feb 2026UK£731.9bUK£268.1bUK£54.8b13.2x13.4x2.7x
Sat, 03 Jan 2026UK£700.6bUK£268.7bUK£54.3b12.7x12.9x2.6x
Mon, 01 Dec 2025UK£661.7bUK£270.7bUK£55.5b12.2x11.9x2.4x
Wed, 29 Oct 2025UK£661.4bUK£266.4bUK£54.3b12.6x12.2x2.5x
Fri, 26 Sep 2025UK£625.4bUK£265.5bUK£54.4b12x11.5x2.4x
Sun, 24 Aug 2025UK£634.3bUK£265.9bUK£52.5b12.7x12.1x2.4x
Tue, 22 Jul 2025UK£617.1bUK£272.6bUK£51.9b12.3x11.9x2.3x
Thu, 19 Jun 2025UK£594.7bUK£277.8bUK£52.3b11.5x11.4x2.1x
Sat, 17 May 2025UK£595.0bUK£279.3bUK£51.0b11.6x11.7x2.1x
Mon, 14 Apr 2025UK£520.8bUK£280.7bUK£52.4b9.6x9.9x1.9x
Wed, 12 Mar 2025UK£573.6bUK£297.2bUK£53.3b10.4x10.8x1.9x
Fri, 07 Feb 2025UK£588.5bUK£298.8bUK£54.1b11.3x10.9x2x
Sun, 05 Jan 2025UK£545.0bUK£298.7bUK£54.0b10.6x10.1x1.8x
Tue, 03 Dec 2024UK£534.5bUK£297.1bUK£53.5b11x10x1.8x
Thu, 31 Oct 2024UK£509.4bUK£293.4bUK£51.9b11.3x9.8x1.7x
Sat, 28 Sep 2024UK£479.9bUK£269.1bUK£46.6b11.3x10.3x1.8x
Mon, 26 Aug 2024UK£473.5bUK£265.2bUK£47.8b11.6x9.9x1.8x
Wed, 24 Jul 2024UK£455.1bUK£240.1bUK£47.0b11.9x9.7x1.9x
Fri, 21 Jun 2024UK£458.4bUK£241.7bUK£47.2b12.3x9.7x1.9x
Sun, 19 May 2024UK£461.1bUK£241.1bUK£47.0b12.8x9.8x1.9x
Tue, 16 Apr 2024UK£464.2bUK£266.8bUK£53.5b12.1x8.7x1.7x
Thu, 14 Mar 2024UK£452.4bUK£242.2bUK£53.1b12.6x8.5x1.9x
Sat, 10 Feb 2024UK£376.2bUK£184.6bUK£50.9b12.1x7.4x2x
Mon, 08 Jan 2024UK£401.9bUK£188.0bUK£51.4b13.5x7.8x2.1x
Wed, 06 Dec 2023UK£386.4bUK£188.6bUK£51.7b12.5x7.5x2x
Fri, 03 Nov 2023UK£367.5bUK£189.8bUK£52.0b11.4x7.1x1.9x
Sun, 01 Oct 2023UK£395.4bUK£182.7bUK£48.4b12.6x8.2x2.2x
Tue, 29 Aug 2023UK£376.8bUK£179.8bUK£47.5b12.8x7.9x2.1x
Thu, 27 Jul 2023UK£418.9bUK£180.2bUK£50.9b12.4x8.2x2.3x
Sat, 24 Jun 2023UK£391.3bUK£177.8bUK£51.4b11.8x7.6x2.2x
Mon, 22 May 2023UK£417.9bUK£182.2bUK£52.0b13.1x8x2.3x
Wed, 19 Apr 2023UK£401.8bUK£171.4bUK£42.7b12.9x9.4x2.3x
Fri, 17 Mar 2023UK£366.7bUK£166.8bUK£42.4b11.8x8.7x2.2x
Sun, 12 Feb 2023UK£427.8bUK£144.4bUK£35.0b11.9x12.2x3x
Price to Earnings Ratio

12.2x


Total Market Cap: UK£427.8bTotal Earnings: UK£35.0bTotal Revenue: UK£144.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Financials Sector Price to Earnings3Y Average 9.9x202420252026
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 13.4x which is higher than its 3-year average PE of 9.9x.
  • The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 23% 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 Market0.80%
Financials1.43%
Banks2.86%
Insurance2.59%
Mortgage Finance0%0
Diversified Financial-1.24%
Consumer Finance-1.70%
Capital Markets-3.08%
Industry PE
  • Investors are most optimistic about the Insurance industry, which is trading close to its 3-year average PE ratio of 16.6x.
    • Analysts are expecting annual earnings growth of 13.7%, which is higher than its past year's earnings decline of 26.2% per year.
  • Investors are most pessimistic about the Diversified Financial industry, which is trading close to its 3-year average of 8.6x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 29% over the next 5 years.
  • However this is lower than its past earnings growth rate of 55% 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
HSBA HSBC HoldingsUK£13.083.9%
+UK£8.4b		58.2%PB1.6x
LLOY Lloyds Banking GroupUK£1.127.2%
+UK£4.4b		80.8%PB1.4x
III 3i GroupUK£33.576.7%
+UK£3.1b		-15.3%PE5.4x
NWG NatWest GroupUK£6.925.2%
+UK£2.7b		59.2%PB1.3x
BEZ BeazleyUK£12.409.4%
+UK£630.3m		48.2%PE10.2x

Latest News

BEZ
UK£12.40
Beazley
7D
9.4%
1Y
48.2%
BPT
UK£2.64
Bridgepoint Group
7D
-3.7%
1Y
-30.2%
BARC
UK£4.83
Barclays
7D
0.7%
1Y
63.6%

BARC: Prospective Evelyn Deal Will Likely Leave Shares Looking Expensive

Analysts have raised their fair value estimate for Barclays from £3.23 to £3.93 per share, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E levels. What's in the News Reuters reported that Barclays is considering an acquisition of UK wealth manager Evelyn Partners, with a potential business value of over £2.5b and non binding offers requested by 10 December 2025, alongside interest from other banks such as NatWest Group, Lloyds and Royal Bank of Canada (Reuters).
HSBA
UK£13.08
HSBC Holdings
7D
3.9%
1Y
58.2%

HSBA: Future Returns Will Hinge On Chair Succession Rather Than Execution

Analysts have nudged their fair value estimate for HSBC Holdings higher to £11.54 from £11.25, citing updated assumptions for slightly faster revenue growth, a modestly higher profit margin, and a P/E multiple that lines up with recent price target moves and rating changes from Citi, Erste Group, and Morgan Stanley. Analyst Commentary Recent Street research on HSBC Holdings points to a mix of optimism around execution in the next few years and some caution on how much of that is already reflected in the share price.
WISE
UK£9.16
Wise
7D
-3.8%
1Y
-18.6%

WISE: Execution Risks Around Lower Future P/E Will Pressure Overvalued Shares

Analysts have raised their price target on Wise, now implying fair value of £7.60 per share compared with £7.50 previously. They cite updated assumptions around revenue growth, profitability and a lower future P/E multiple.
HSBK
US$32.00
Halyk Bank of Kazakhstan
7D
-2.4%
1Y
68.1%

HSBK: Follow-On Offering Will Support Capital While Outlook Remains Steady

Analysts have nudged their price target for Halyk Bank of Kazakhstan to US$29.90, reflecting small tweaks to inputs such as the discount rate, revenue growth, profit margin and assumed future P/E multiple rather than a shift in the core outlook. What's in the News Halyk Bank of Kazakhstan Joint Stock Company has filed a follow on equity offering totaling KZT 143.3568b through Global Depositary Receipts, categorized as a Follow on Equity Offering (Key Developments).
LLOY
UK£1.12
Lloyds Banking Group
7D
7.2%
1Y
80.8%

LLOY: Buybacks And Dividend Policy Will Support Measured Future Return Profile

Analysts have lifted their price target for Lloyds Banking Group to £1.08 from £0.96, citing adjusted assumptions for revenue growth, profit margins and future P/E multiples that point to a higher assessed fair value. What's in the News The Board of Directors has authorized a new share buyback plan, approved on 30 January 2026.
LSEG
UK£71.70
London Stock Exchange Group
7D
-13.6%
1Y
-40.7%

LSEG: Private Markets Data Partnership Will Support Long-Term Upside Potential

Analysts have nudged their price target on London Stock Exchange Group slightly higher to £123.06 from £122.84, reflecting updated views on fair value, discount rate, revenue growth, profit margins and future P/E assumptions. What's in the News LSEG agreed a partnership with Nasdaq to distribute institutional-grade private markets intelligence through LSEG Workspace and Datafeeds, broadening the range of private investment data available to users (Key Developments).
III
UK£33.57
3i Group
7D
6.7%
1Y
-15.3%
ADM
UK£28.40
Admiral Group
7D
5.4%
1Y
3.4%

ADM: Mixed Research Signals Will Test Earnings Hopes And Underwriting Resilience

The analyst price target for Admiral Group has moved in line with recent research shifts, including downgrades at some firms and a modest £50 increase to £3,550 at others, as analysts update their views on fair value, growth assumptions and P/E expectations. Analyst Commentary Recent research on Admiral Group shows a mixed picture, with some bearish analysts turning more cautious even as one major bank adjusts its price target slightly higher.
GROW
UK£4.59
Molten Ventures
7D
-11.2%
1Y
44.2%

GROW: Expanded Buybacks And Steady Assumptions Will Support Future Shareholder Returns

Analysts have trimmed their price target on Molten Ventures by a small amount, reflecting slightly adjusted assumptions around the discount rate, long term revenue trends, margin outlook and future P/E. They have kept their view of fair value broadly unchanged at £6.27.
AV.
UK£6.55
Aviva
7D
3.2%
1Y
28.9%

AV.: Medium Term Earnings Targets And Softer Ratings Will Shape Balanced Return Profile

Narrative Update on Aviva Analysts have trimmed their average price targets on Aviva to around £6.79 from about £6.84. This reflects recent cuts to Street targets in the £6.70 range as they factor in updated views on growth, margins and fair value.
ICG
UK£16.96
ICG
7D
-8.9%
1Y
-27.6%
IGG
UK£13.52
IG Group Holdings
7D
-1.5%
1Y
32.5%

IGG: Future Guidance Shift And Margin Outlook Will Shape Fair Value

Analysts have lifted their price target on IG Group Holdings to £13.19 from £12.73, citing updated assumptions for revenue growth, profit margins and future P/E that shift their view of the stock’s fair value. What's in the News IG Group now expects total revenue of about £630 million for the seven months ending 31 December 2025, which it describes as around 3% higher than the prior year for the comparable period (Key Developments).
NWG
UK£6.92
NatWest Group
7D
5.2%
1Y
59.2%

NWG: Future Capital Returns And Wealth Moves Will Support Fair Value

Our NatWest Group narrative fair value estimate edges higher to £6.77 from £6.63 as analysts broadly lift price targets, citing updated capital expectations and modest tweaks to revenue growth, discount rate and P/E assumptions. Analyst Commentary Bullish Takeaways Bullish analysts are lifting price targets into a £6.65 to £7.30 per share range, which broadly supports our £6.77 narrative fair value estimate and points to a cluster of views around similar valuation levels.
OCI
UK£5.12
Oakley Capital Investments
7D
-4.8%
1Y
6.4%