Should you buy these 5 FTSE 100 green loans provider banks?

Highlights

  • NatWest committed to provide £100 billion in green funding by the end of 2025.
  • The bank is aiming to help small and medium firms (SMEs) to capitalise on the drive to fight the menace of climate change.
  • HSBC Holdings uses its global expertise to provide green loans in the sustainable finance market.

Just two weeks ahead of the COP-26 climate summit to be hosted by the UK in Glasgow, NatWest, the Scotland-based banking and insurance company, has made a commitment to offer £100 billion in green funding by the end of 2025, making its green credentials stronger.

The bank is aiming to help small and medium firms (SMEs) to capitalise on the drive to fight the menace of climate change by launching its first environmentally friendly business loan.

Previously known as the Royal Bank of Scotland, NatWest has asserted that a transition towards net-zero can help in the transformation of the economy in addition to the protection of environment. Around 130,000 new jobs and 30,000 new small firms could be created in the process, which could play a critical role in the economy as SMEs contribute to approximately 50% of total UK turnover while providing jobs to around 60% of the total workforce.

This move will also help the bank in making up for the recent anti-money laundering charges faced by it, for which it needs to pay a fine of £340 million.

RELATED READ: Why NatWest Was Held Guilty by FCA

Let’s take a look at the stock price performance of the top FTSE banks that are also focusing on green financing and sustainability-linked loans.

Natwest Group PLC (LON: NWG)

NatWest Group has been listed on the main market of the London Stock Exchange since 1968 and is a constituent of the FTSE 100 index.

Its current market capitalisation stands at £26,270.77 million. It has given a return of 103.45% in 1 year. Natwest Group PLC’s shares were trading at GBX 229.80 as of 9:01 AM GMT+1 on 13 October 2021.

Green Financing provider FTSE 100 banks

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HSBC Holdings plc (LON: HSBA)

HSBC Holdings plc is a global investment bank and financial services company, and it is the second-largest bank in Europe. It uses its global expertise to provide green loans in the sustainable finance market. It is a constituent of the FTSE 100 index.

Its current market capitalisation stands at £87,629.97 million. It has given a return of 39.20% in 1 year. HSBC Holdings plc’s shares were trading at GBX 428.55, down by 0.11% as of 9:03 AM GMT+1 on 13 October 2021.

RELATED READ: Which companies are setting early targets to cut carbon footprint?

Lloyds Banking Group PLC (LON: LLOY)

Lloyds Banking Group PLC is among the largest financial services companies across the UK, providing both retail and commercial financial services. Under its Clean Growth Financing Initiative, it provided green finance of over £2.3 billion last year. It is a constituent of the blue-chip FTSE 100 index. Its current market capitalisation stands at £34,450.63 million. It has given a return of 72.87% in 1 year. Lloyds Banking Group PLC’s shares were trading at GBX 48.76, up by 0.48% as of 9:05 AM GMT + 1 on 13 October 2021.

Barclays PLC (LON: BARC)

Barclays PLC is a London-headquartered multinational bank that mainly operates through its two divisions, Barclays UK and Barclays International. It aims to become a net-zero bank by 2050 and provides funding to a range of green and environmental projects. It is a constituent of the FTSE 100 index.

Its current market capitalisation stands at £33,264.54 million. It has given a return of 86.56% in 1 year. Barclays PLC’s shares were trading at GBX 197.22, up by 0.12 as of 9:08 AM GMT+1 on 13 October 2021.

Standard Chartered PLC (LON: STAN)

Standard Chartered PLC is a London-headquarters global banking group that provides its services mainly across Asia, Africa, and the Middle East. In March, it came up with its new Sustainable Trade Finance Proposition to support its ESG goals. It is a constituent of the FTSE 100 index.

Its current market capitalisation stands at £15,124.63 million. It has given a return of 29.60% in 1 year. Standard Chartered PLC’s shares were trading at GBX 490.50, down by 0.14% as of 9:09 AM GMT+1 on 13 October 2021.stock

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