UK financial services M&A deal value up eight-fold in H1 2026

M&A transactions in the UK financial services sector rose significantly in the first half of 2026, with a 25% year-on-year increase in announced or completed deals, and a marked eight-fold increase in deal value, according to the latest EY financial services M&A analysis. 

UK banks, insurers and asset managers publicly disclosed 135 transactions between January and the end of June 2026, compared to 108 deals in H1 2025. Total disclosed value for UK financial services deals rose significantly from £4.2bn in H1 2025 to £33.7bn in H1 2026. Seven deals exceeded £1bn in value (including two megadeals between £8-10bn), representing approximately 93% of total deal value, up from two deals above £1bn in H1 2025. 

UK financial services M&A has grown post-Brexit

Over the past decade, dealmaking in the UK’s financial services sector has fluctuated annually, with overall volume trending up. H1 deal volumes are now 93% higher than they were in 2017 (70 total deals reported) and deal value has more than doubled (from £10.1bn in 2017).

M&A appetite high among financial services leaders; tech and AI a key decision driver

While deal volume was slightly lower than during H2 2025, when UK financial services firms recorded 141 deals, disclosed deal value increased from £27.9bn to £33.7bn in H1 2026, with momentum expected to build further in H2 2026. 95% of UK financial services CEOs expect their organisation’s appetite for M&A to increase in 2026 compared to 2025, according to the latest EY CEO Outlook for UK financial services. 

Enhancing technology or AI capabilities was identified as the most important driver of these decisions, with a quarter (25%) ranking it as their top priority, ahead of strategic fit with long-term growth priorities and return on invested capital.

Damian Hourquebie, EY UK Financial Services Strategy and Transactions Leader, comments: “It’s been a strong first half for UK financial services dealmaking, with overall transaction value significantly higher compared to last year, and more than double what it was a decade ago. Market confidence has been supportive, with continued focus on strategic consolidation to bolster revenue growth, innovation, and transformation.

“While geopolitical and economic uncertainty remains, the strength of activity across H2 2025 and H1 2026, alongside the prioritisation of tech and capability-led M&A, suggests UK financial services leaders are making bold, strategic decisions to support sustained growth amid market challenges.”

Half-year publicly disclosed M&A activity across the UK’s financial services sector

• UK wealth and asset management deals rose from 47 in H1 2025 to 61 in H1 2026, with deal value increasing significantly from £0.2bn in H1 2025 to £22.7bn in H1 2026. 

• UK insurance deals increased from 40 in H1 2025 to 55 in H1 2026, with deal value rising significantly from £1.6bn in H1 2025 to £8.4bn in H1 2026.

• UK banking and capital markets deals declined slightly from 21 in H1 2025 to 19 in H1 2026, while deal value increased slightly from £2.4bn in H1 2025 to £2.5bn in H1 2026.

The number of non-UK firms acquiring UK targets fell from 40 in H1 2025 to 36 in H1 2026, while the total disclosed deal value rose significantly from £4.1bn in H1 2025 to £27.2bn in H1 2026. 

UK firms acquiring overseas targets fell from 37 in H1 2025 to 34 in H1 2026, while total disclosed deal value increased from £0.6bn in H1 2025 to £2.6bn in H1 2026.

Ari Constantinou, EY UK Financial Services Transformation Leader concludes: “Wealth and asset management continues to stand out as one of the most active areas of high-value M&A in UK financial services, with investors drawn to the sector’s long-term growth potential and opportunities to expand. While scale remains a key driver for deals, we are seeing more firms use M&A to accelerate business transformation - expanding advice capabilities, strengthening private market offerings, reaching new client segments, and enhancing digital investment capabilities. In this environment, M&A is increasingly being used not just to grow bigger, but to transform faster.”

Notes to editors:

• Deals include transactions (announced or completed) where the target is in one of the three financial services sectors: banking and capital markets, insurance, or wealth and asset management

• Deal values are attributed to the date of deal announcement

• Equity investments were included

• PE/VCs targets, IPO and Joint ventures were not included

• Deals where less than 20% (disclosed) of the company or a minority stake was acquired have been excluded from this analysis 

• The total number of deals relates to transactions where the target is UK-based

• Data range: 1 January 2026 to 30 June 2026 

• There is no minimum disclosed value deal threshold