European banks such as Barclays PLC and Deutsche Bank AG say lending to environmentally minded companies is the future. Some analysts think the strategy could pay off for their share prices, which have lagged behind faster-growing U.S. rivals for years.
Investors view European banks as hamstrung by low interest rates, increasing competition from financial technology companies and the economic impact of the pandemic. Slow-growth economies in the region have sapped demand for loans from consumers and businesses.
