The UK’s financial services sector saw an increase in total disclosed deal value from £19.7bn in 2024 to £38bn in 2025, new data from EY has shown.

EY’s latest financial services M&A analysis indicated that this was driven by a notable rise in deals over the £1bn mark.

UK banks, insurers and asset managers publicly disclosed 337 deals between January and the end of December 2025, down from a record high of 378 in 2024.

Over the same timeframe, the total value of announced or completed transactions increased by 93%, however, with 12 transactions exceeding £1bn and high-value activity across all sectors.

“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,” said EY UK financial services strategy and transactions leader, Damian Hourquebie.

EY also reported that the number of non-UK firms acquiring UK targets climbed from 74 in 2024 to 94 in 2025, while the total deal value also rose from £3.9bn to £30.3bn.

UK firms acquiring overseas targets decreased from 97 in 2024 to 88 in 2025, however, although the overall disclosed deal value still grew from £1.7bn to £6.2bn.

Hourquebie suggested that “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,” he added. “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.”

---