Even though the United Kingdom does not have the biggest economy in Europe—that honour goes to Germany—London still remains the financial heart of the continent. It hosts Europe’s largest stock exchange and gives the UK a major presence on the global business stage.
UK Leads Europe in Global Company Rankings
In 2024, the UK had 68 companies featured on the Forbes Global 2000 list, which ranks the world’s biggest public companies. This is more than any other European country, including Germany, which has 49 firms on the list. Only the U.S., China, Japan, and India have more companies on the list than the UK.
Big Names in UK Business
Out of these 68 UK companies, only two—HSBC Holdings and Shell—ranked among the world’s top 100. HSBC, at number 15, is Europe’s largest bank, with $3 trillion in assets. Shell, one of the world’s largest energy companies, ranked 23rd. Though Shell saw a slight drop in sales and profit, it still made $284 billion in revenue and $16 billion in net profit.
UK’s Strong Banking Sector
Many top UK companies are banks. Barclays, Lloyds, NatWest, and Standard Chartered all made it into the top 250 globally. Barclays, for example, grew its revenue by 9% to $34 billion and its profit by 34% to $6.8 billion.
Thanks to strong earnings, its share price jumped by 35%. The bank is also giving back $13.5 billion to its shareholders through dividends and buybacks.
Other banks like Lloyds, NatWest, and Standard Chartered have also been rewarding investors. All three have seen their share prices go up by over 30% and have announced share buybacks worth over $1 billion in the past year.
The Bank of England’s move to raise interest rates from nearly zero to 5.25% between 2021 and 2023 helped banks earn more on loans, increasing their profits. Rates have now come down to 4.25%, but they’re still higher than what they were for most of the past 15 years.
Defense and Engineering Firms on the Rise
The UK’s defense and aerospace companies are also doing well. BAE Systems, Europe’s biggest defense contractor, is ranked 320th globally. Rolls-Royce Holdings, which makes aircraft engines, is at number 330.
Both companies have gained from Europe’s increased defence spending after the U.S. paused military aid to Ukraine. Rolls-Royce’s stock has doubled in the past year, while BAE’s has risen by 25%.
BP Faces Major Setback
One of the biggest losers among UK companies is BP. It dropped from being in the top 50 to 421st. Its profit plunged from $9.2 billion to just $399 million, and its share price fell 27%. The company has suffered from falling oil prices and power outages at key refineries in Rotterdam and Indiana.
FTSE 100’s Modest Growth
The FTSE 100, which tracks the 100 largest companies on the London Stock Exchange, grew only 8% since last June. That’s four percentage points less than the U.S.’s S&P 500. With financial firms making up 23% of the index, many investors are still waiting for better results from other industries like healthcare, mining, and energy.
The UK may not have Europe’s biggest economy, but it remains a dominant player in the global financial world. With strong banking and defence sectors, the country continues to punch above its weight.
However, challenges remain in the energy and pharmaceutical sectors, showing that while London leads in finance, other areas still need to pick up pace. As the UK moves forward, investors will be watching closely to see if other industries can deliver stronger growth.
