This study tests whether financial‑performance metrics predict share prices of FTSE‑100 banks. Using a quarterly panel (2012‑2023), we estimate a regression of bank stock price on profitability (ROE), capital adequacy, and liquidity, controlling for size. Results indicate that ROE and capital adequacy are both statistically significant and positively related to share price, suggesting markets value earnings capacity and solvency credibility in UK banks. Liquidity adds little explanatory power once profitability and capital are accounted for, implying its informational value is muted under a credible lender‑of‑last‑resort regime. The findings reinforce the view that markets do not price ratio classes uniformly but assign weight to those signals that close the most consequential uncertainty in banks, the uncertainty is not about transactions but about survival and return persistence. The study contributes to post-crisis and post-pandemic financial-management literature by showing that the performance-price channel in FTSE banks is confidence-conditioned rather than mechanically ratio-driven. The implications are relevant for bank managers, prudential regulators and investors in high-regulation financial systems.

FTSE-100 banks, profitability, capital adequacy, liquidity, share price determinants

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