Total value of M&A activity in UK financial services doubled in 2025

The UK financial services sector saw an increase in total disclosed deal value from £19.7bn in 2024 to £38.0bn in 2025, driven by a notable rise in deals over £1bn, according to EY’s latest financial services M&A analysis.

UK banks, insurers and asset managers publicly disclosed 337 deals between January and the end of December 2025, down from the record high of 378 in 2024. Over the same time period, the total value of announced or completed transactions rose by 93%, with 12 transactions exceeding £1bn, and high-value activity across all sectors. 

Damian Hourquebie, EY UK Financial Services Strategy and Transactions Leader, comments: “Despite a challenging UK market, pro-growth investment appetite was strong last year, with total deal value nearly doubling since 2024, and renewed focus on larger strategic transactions, particularly in the banking and insurance sectors. 

“Robust M&A activity in the UK is expected to continue in 2026. Assuming inflation and interest rates continue to stabilise, investor confidence will likely drive ongoing transaction activity. UK businesses will increasingly target significant deals that aim to bolster their long-term growth goals, optimise costs, and drive innovation in a competitive market.”

Publicly disclosed M&A activity across the UK’s financial markets in 2025

• UK banking deals remained flat at 70 in both 2024 and 2025; however, total deal value increased from £6.3bn to £9.5bn, supported by three transactions exceeding £1bn.
• UK insurance deals fell from 186 in 2024 to 145 in 2025, while deal value grew significantly from £4.6bn to £19.8bn, driven by seven transactions above £1bn.
• Deals in UK wealth and asset management industry remained flat at 122 in 2024 and 2025. Overall disclosed deal value fell slightly from £8.8bn in 2024 to £8.7bn in 2025, with two transactions over £1bn.

The number of non-UK firms acquiring UK targets rose from 74 in 2024 to 94 in 2025, and the total deal value also rose from £3.9bn in 2024 to £30.3bn in 2025. 

UK firms acquiring overseas targets decreased from 97 in 2024 to 88 in 2025, but overall disclosed deal value increased from £1.7bn in 2024 to £6.2bn in 2025. 

Notes to editors:

• Deals include transactions (announced or completed) where the target is in one of the three financial services sectors: banking, insurance, or asset management
• Equity investments are included, but joint ventures are not
• Deals where less than 20% (disclosed) or a minority stake of the company was acquired have been excluded from this analysis 
• The total number of deals relate to where there was either a UK target and/or UK acquirer
• Data range: 1 January 2025 – 31 December 2025
• There is no minimum disclosed value deal threshold