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U.K. (FTSE) Financials Sector Analysis

UpdatedApr 05, 2026
DataAggregated Company Financials
Companies198
  • 7D6.0%
  • 3M-3.1%
  • 1Y36.9%
  • YTD-2.0%

The Financials industry is up 6.0% in the last week, with HSBC Holdings up 6.1%. In the last 12 months, the industry was up 37%. Looking forward, earnings are forecast to grow by 9.6% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Apr 2026UK£681.4bUK£311.9bUK£61.9b12x11x2.2x
Tue, 03 Mar 2026UK£738.1bUK£289.0bUK£59.5b13x12.4x2.6x
Thu, 29 Jan 2026UK£717.5bUK£266.9bUK£53.9b13.8x13.3x2.7x
Sat, 27 Dec 2025UK£693.3bUK£268.7bUK£54.4b12.5x12.8x2.6x
Mon, 24 Nov 2025UK£632.2bUK£271.7bUK£55.3b12.4x11.4x2.3x
Wed, 22 Oct 2025UK£619.7bUK£264.3bUK£54.3b12.1x11.4x2.3x
Fri, 19 Sep 2025UK£631.9bUK£263.5bUK£54.1b12.1x11.7x2.4x
Sun, 17 Aug 2025UK£619.5bUK£265.5bUK£52.3b12.3x11.8x2.3x
Tue, 15 Jul 2025UK£611.4bUK£272.8bUK£52.0b11.9x11.7x2.2x
Thu, 12 Jun 2025UK£596.9bUK£277.1bUK£52.1b11.8x11.5x2.2x
Sat, 10 May 2025UK£579.6bUK£278.1bUK£50.2b11.3x11.5x2.1x
Mon, 07 Apr 2025UK£517.4bUK£282.2bUK£52.9b10x9.8x1.8x
Wed, 05 Mar 2025UK£604.5bUK£299.5bUK£54.0b10.2x11.2x2x
Fri, 31 Jan 2025UK£577.1bUK£298.6bUK£54.0b11.1x10.7x1.9x
Sun, 29 Dec 2024UK£541.4bUK£297.5bUK£53.4b10.9x10.1x1.8x
Tue, 26 Nov 2024UK£531.6bUK£298.2bUK£54.1b10.5x9.8x1.8x
Thu, 24 Oct 2024UK£475.4bUK£270.3bUK£47.1b11.5x10.1x1.8x
Sat, 21 Sep 2024UK£466.9bUK£269.3bUK£46.5b11.3x10x1.7x
Mon, 19 Aug 2024UK£472.0bUK£266.7bUK£48.3b11.8x9.8x1.8x
Wed, 17 Jul 2024UK£453.7bUK£239.7bUK£46.8b11.8x9.7x1.9x
Fri, 14 Jun 2024UK£453.3bUK£240.7bUK£46.8b12.2x9.7x1.9x
Sun, 12 May 2024UK£458.7bUK£242.2bUK£47.7b12.9x9.6x1.9x
Tue, 09 Apr 2024UK£469.1bUK£265.5bUK£53.1b11.8x8.8x1.8x
Thu, 07 Mar 2024UK£425.6bUK£205.6bUK£50.9b13.1x8.4x2.1x
Sat, 03 Feb 2024UK£390.4bUK£188.6bUK£51.5b12.5x7.6x2.1x
Mon, 01 Jan 2024UK£406.0bUK£187.9bUK£51.3b13.4x7.9x2.2x
Wed, 29 Nov 2023UK£383.0bUK£188.0bUK£51.5b12.4x7.4x2x
Fri, 27 Oct 2023UK£372.7bUK£185.6bUK£49.7b11.3x7.5x2x
Sun, 24 Sep 2023UK£397.9bUK£182.6bUK£48.2b12.8x8.3x2.2x
Tue, 22 Aug 2023UK£375.0bUK£179.1bUK£47.3b12.3x7.9x2.1x
Thu, 20 Jul 2023UK£414.5bUK£180.0bUK£50.9b12.5x8.1x2.3x
Sat, 17 Jun 2023UK£414.9bUK£177.6bUK£51.1b12.7x8.1x2.3x
Mon, 15 May 2023UK£412.6bUK£181.5bUK£51.5b12.9x8x2.3x
Wed, 12 Apr 2023UK£397.5bUK£171.4bUK£42.7b13.2x9.3x2.3x
Price to Earnings Ratio

9.3x


Total Market Cap: UK£397.5bTotal Earnings: UK£42.7bTotal Revenue: UK£171.4bTotal 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 11.0x which is higher than its 3-year average PE of 9.9x.
  • 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 13% per year over the last three years.
  • Revenues for these companies have grown 22% 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 Market4.54%
Financials5.98%
Capital Markets6.65%
Banks6.27%
Insurance4.09%
Diversified Financial3.28%
Consumer Finance3.03%
Mortgage Finance0%0
Industry PE
  • Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 11.8x.
    • Analysts are expecting annual earnings growth of 7.8%, which is higher than its past year's earnings growth of 5.4% per year.
  • Investors are most pessimistic about the Diversified Financial industry, which is trading below its 3-year average of 8.2x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 20% over the next 5 years.
  • However this is lower than its past earnings growth rate of 63% per year.
  • In contrast, the Insurance industry is expected to see its earnings grow by 7.8% 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
III 3i GroupUK£26.8715.7%
+UK£3.7b		-23.9%PE4.4x
BARC BarclaysUK£4.096.9%
+UK£3.5b		63.5%PB0.7x
LSEG London Stock Exchange GroupUK£89.208.2%
+UK£3.2b		-20.0%PE35.4x

Latest News

LSEG
UK£89.20
London Stock Exchange Group
7D
8.2%
1Y
-20.0%
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.
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.
III
UK£26.87
3i Group
7D
15.7%
1Y
-23.9%
OSB
UK£5.13
OSB Group
7D
-0.5%
1Y
30.6%

OSB: Lower Discount Rate And Dividend Policy Will Support Constructive Stance

OSB Group's updated analyst price target reflects a recalibration to £6.83 from £6.97, with analysts pointing to refreshed views on fair value, discount rate and earnings assumptions following mixed recent research that included a target lift to £7.30 and a downgrade from another firm. Analyst Commentary Recent research on OSB Group highlights a split in views, with some analysts lifting price targets while others are more cautious on the shares.
POLN
UK£8.02
Pollen Street Group
7D
-1.7%
1Y
16.9%
PINT
UK£1.06
Pantheon Infrastructure
7D
-1.9%
1Y
16.0%
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.
ORIT
UK£0.53
Octopus Renewables Infrastructure Trust
7D
-4.5%
1Y
-13.1%
PRU
UK£10.80
Prudential
7D
4.2%
1Y
44.6%

PRU: Future Buybacks And Rising Cash Returns Will Support Upside Confidence

Analysts have nudged up the price target on Prudential, with recent moves from £1,270 to £1,500 supported by updated assumptions around higher revenue growth, a lower future P/E and a recalibrated profit margin outlook. Analyst Commentary Recent research updates on Prudential cluster around higher price targets and refreshed assumptions on growth, profitability and valuation multiples.
CBA
UK£0.29
CEIBA Investments
7D
-11.6%
1Y
20.8%
FGEN
UK£0.67
Foresight Environmental Infrastructure
7D
-4.3%
1Y
0.4%
BPCR
US$0.93
BioPharma Credit
7D
-0.9%
1Y
7.9%
CGL
UK£0.89
Castelnau Group
7D
-3.8%
1Y
1.1%