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U.K. (FTSE) Banks Industry Analysis

UpdatedApr 05, 2026
DataAggregated Company Financials
Companies13
  • 7D6.3%
  • 3M-3.1%
  • 1Y60.4%
  • YTD-2.0%

The Banks industry is up 6.3% in the last week, with HSBC Holdings up 6.1%. This takes the industry's 12 month performance to a gain of 60%. Looking forward, earnings are forecast to grow by 9.7% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Apr 2026UK£431.5bUK£132.8bUK£38.7b8.7x11.1x3.3x
Tue, 03 Mar 2026UK£472.1bUK£131.1bUK£38.3b8.8x12.3x3.6x
Thu, 29 Jan 2026UK£458.2bUK£123.8bUK£33.4b10x13.7x3.7x
Sat, 27 Dec 2025UK£434.5bUK£125.1bUK£33.7b9.3x12.9x3.5x
Mon, 24 Nov 2025UK£381.7bUK£126.7bUK£34.1b8.3x11.2x3x
Wed, 22 Oct 2025UK£354.5bUK£121.9bUK£34.5b8.4x10.3x2.9x
Fri, 19 Sep 2025UK£368.5bUK£121.5bUK£34.4b8.7x10.7x3x
Sun, 17 Aug 2025UK£352.4bUK£121.2bUK£34.2b9x10.3x2.9x
Tue, 15 Jul 2025UK£338.9bUK£121.5bUK£34.5b8.6x9.8x2.8x
Thu, 12 Jun 2025UK£324.9bUK£121.0bUK£34.4b8.1x9.4x2.7x
Sat, 10 May 2025UK£313.7bUK£121.6bUK£34.6b7.8x9.1x2.6x
Mon, 07 Apr 2025UK£277.8bUK£124.9bUK£37.1b6.7x7.5x2.2x
Wed, 05 Mar 2025UK£326.1bUK£125.3bUK£37.3b7.1x8.7x2.6x
Fri, 31 Jan 2025UK£298.8bUK£123.6bUK£37.1b5.3x8x2.4x
Sun, 29 Dec 2024UK£274.3bUK£123.0bUK£36.9b4.8x7.4x2.2x
Tue, 26 Nov 2024UK£266.7bUK£123.3bUK£37.1b4.9x7.2x2.2x
Thu, 24 Oct 2024UK£219.0bUK£96.8bUK£30.5b5.8x7.2x2.3x
Sat, 21 Sep 2024UK£213.9bUK£96.6bUK£30.3b6.7x7.1x2.2x
Mon, 19 Aug 2024UK£216.5bUK£98.2bUK£30.9b6x7x2.2x
Wed, 17 Jul 2024UK£215.6bUK£96.1bUK£31.1b6.1x6.9x2.2x
Fri, 14 Jun 2024UK£216.2bUK£97.1bUK£31.4b6.2x6.9x2.2x
Sun, 12 May 2024UK£224.0bUK£98.3bUK£31.7b6x7.1x2.3x
Tue, 09 Apr 2024UK£238.6bUK£121.2bUK£36.5b5.5x6.5x2x
Thu, 07 Mar 2024UK£223.4bUK£120.5bUK£36.4b6.3x6.1x1.9x
Sat, 03 Feb 2024UK£193.4bUK£109.7bUK£37.6b5.3x5.1x1.8x
Mon, 01 Jan 2024UK£202.9bUK£109.2bUK£37.4b5x5.4x1.9x
Wed, 29 Nov 2023UK£189.5bUK£109.4bUK£37.4b5.4x5.1x1.7x
Fri, 27 Oct 2023UK£194.2bUK£107.0bUK£36.0b4.8x5.4x1.8x
Sun, 24 Sep 2023UK£208.9bUK£104.7bUK£34.7b5.4x6x2x
Tue, 22 Aug 2023UK£194.7bUK£102.1bUK£33.8b5.1x5.8x1.9x
Thu, 20 Jul 2023UK£232.6bUK£119.4bUK£37.4b5.4x6.2x1.9x
Sat, 17 Jun 2023UK£228.0bUK£120.3bUK£37.5b5.6x6.1x1.9x
Mon, 15 May 2023UK£226.7bUK£124.1bUK£37.9b5.3x6x1.8x
Wed, 12 Apr 2023UK£220.5bUK£115.4bUK£30.4b6.4x7.2x1.9x
Price to Earnings Ratio

7.2x


Total Market Cap: UK£220.5bTotal Earnings: UK£30.4bTotal Revenue: UK£115.4bTotal 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 11.1x 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 3.3x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 8.4% per year over the last three years.
  • Revenues for these companies have grown 4.8% 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 Market4.54%
Financials5.98%
Banks6.27%
Regional Banks7.85%
Diversified Banks6.26%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 8.0x.
    • Analysts are expecting annual earnings growth of 9.6%, which is higher than its past year's earnings growth of 7.9% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 20.2x.
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£12.736.1%
+UK£12.5b		67.5%PB1.5x
LLOY Lloyds Banking GroupUK£0.988.3%
+UK£4.4b		50.7%PB1.2x
BARC BarclaysUK£4.096.9%
+UK£3.5b		63.5%PB0.7x
NWG NatWest GroupUK£5.756.6%
+UK£2.8b		39.2%PB1.1x
STAN Standard CharteredUK£15.913.6%
+UK£1.2b		65.9%PB0.9x

Latest News

HSBK
US$32.05
Halyk Bank of Kazakhstan
7D
3.4%
1Y
47.4%

HSBK: Higher Margins And Cautious Revenue Outlook Will Shape Fair View

Analysts have lifted their price target on Halyk Bank of Kazakhstan by $2, from $29.90 to $31.90, citing updated assumptions that include a different revenue growth outlook, higher profit margin expectations, and a slightly adjusted P/E multiple and discount rate. Valuation Changes Fair Value: Price target revised from $29.90 to $31.90, a modest uplift in the central valuation estimate.
NWG
UK£5.75
NatWest Group
7D
6.6%
1Y
39.2%

NWG: Evelyn Takeover And Buybacks Will Support Future Share Upside

Analyst price targets for NatWest Group have shifted modestly higher to £7.31 from £7.24, reflecting recent revisions that balance higher fair value estimates and slightly firmer revenue growth and profit margin assumptions, along with mixed target changes from banks including Deutsche Bank, Morgan Stanley, Citi, JPMorgan, BNP Paribas and Barclays. Analyst Commentary Recent research on NatWest Group points to a mix of optimism and caution, with changes in ratings and price targets reflecting different views on valuation, execution and growth prospects.
LLOY
UK£0.98
Lloyds Banking Group
7D
8.3%
1Y
50.7%
HSBA
UK£12.73
HSBC Holdings
7D
6.1%
1Y
67.5%

HSBA: Future Returns Will Hinge On Cost Discipline And Execution Quality

Analysts have raised their price targets on HSBC Holdings, reflecting a higher internal fair value estimate of £13.53 from £13.17, supported by updated assumptions for revenue growth, profit margins and future P/E, as well as recent target increases from several major banks. Analyst Commentary Recent research updates on HSBC Holdings show a cluster of higher price targets from major banks, giving you a clearer picture of how the market is thinking about the shares on valuation, execution and growth potential.
BGEO
UK£97.00
Lion Finance Group
7D
4.0%
1Y
99.8%

BGEO: Index Inclusion And Capital Returns Will Support Higher Future Margins

The analyst price target for Lion Finance Group has increased from £112.50 to £131.00. Analysts attribute the change to updated assumptions on growth, profitability and P/E multiples, as well as support from a new £13,100 price target issued by a major bank.
BARC
UK£4.09
Barclays
7D
6.9%
1Y
63.5%

BARC: Future Income Guidance And Buybacks Will Support Higher Share Price

Analysts have trimmed their Barclays price target slightly to £5.90. This reflects updated assumptions on revenue growth, profit margins and future P/E that are now broadly in line with previous fair value estimates.
ARBB
UK£8.73
Arbuthnot Banking Group
7D
-0.9%
1Y
2.0%
STAN
UK£15.91
Standard Chartered
7D
3.6%
1Y
65.9%

STAN: Future Returns Will Rely On Crypto Brokerage Expansion And Capital Return Discipline

Analysts have made a modest upward adjustment to the fair value estimate for Standard Chartered to £19.25 from £18.94, reflecting updated assumptions on revenue growth, profit margins and future P/E multiples, alongside mixed but generally supportive price target changes from JPMorgan, Morgan Stanley and Citi. Analyst Commentary Recent research updates present a mixed but generally constructive picture, with several price target revisions clustering around the current fair value estimate and reinforcing a relatively tight valuation range for Standard Chartered.
SHAW
UK£3.35
Shawbrook Group
7D
8.1%
1Y
n/a