The total value of merger & acquisition (M&A) activity in UK financial services doubled year-on-year in 2025, driven by a resurgence in deals worth more than £1bn, analysis from EY has shown.

Disclosed transaction value increased from £19.7bn in 2024 to £38bn in 2025.

Despite the increase in deal value, the number of transactions fell, with financial services firms publicly disclosing 337 deals during the year, down from a record high of 378 the previous year.

Over the same period, the total value of announced or completed transactions increased by 93 per cent, with 12 transactions exceeding £1bn amid high-value activity across all sectors.

However, the number of deals in the UK wealth and asset management industry remained stable at 122 in 2024 and 2025, while overall disclosed deal value fell slightly from £8.8bn to £8.7bn, with two transactions over £1bn in 2025.

The banking and insurance sectors saw increases in total deal value year-on-year, from £6.3bn to £9.5bn and from £4.6bn to £19.8bn respectively.

The number of non-UK firms acquiring UK targets rose from 74 in 2024 to 94 in 2025, while total deal value increased from £3.9bn to £30.3bn over the same period.

UK firms acquiring overseas companies fell from 97 in 2024 to 88 in 2025, although overall disclosed deal value increased from £1.7bn to £6.2bn.

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

“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.”

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