Rate hikes prioritize today in European banks, although environmental risks will become increasingly important, according to Jefferies, which establishes a ranking of the greenest financial institutions.
Since the end of last year, European banks have been among the favorites of investment firms, not only to overcome the pressures derived from the escalation in rate hikes. The change of scenario has already acted as a catalyst for bank prices, as evidenced by the revaluations close to 45% accumulated by the shares of CaixaBank and Banco Sabadell so far this year.
Rate hikes and the economic slowdown become the priorities of investors in European banks. With a longer-term view, Jefferies analysts point to a factor that is also increasingly important in terms of investment: sustainability.
In the future, banks that pay less attention to sustainability could face environmental risks, as Jefferies warns in a report that establishes the podium of the three greenest financial institutions in Europe, the least sustainable, the ones that are making the most progress, and finally, those that have worsened the most.
At the head of the ranking of the greenest European banks is the Belgian KBC, ahead of the Nordic Swedbank and DNB Bank.
At the opposite extreme, Jefferies analysts place Intesa Sanpaolo, UniCredit and Société Générale as the three banks with the most environmental risks.
The American investment firm also establishes the podium of the three European banks that are making the most progress in terms of sustainability, and in this section, together with HSBC and KBC, it places the only Spanish entity that stands out in its rankings, Bankinter, thanks to better green bond financing and a cut in fossil fuel financing and energy transition risk exposure.
Finally, Jefferies lists the three European banks that have suffered the greatest deterioration in terms of sustainability. UnCredit, Société Générale and ING stand out on this list.
