European Bank Assets Are Only 3% Green, Faulted New Metric Shows

European banks including Deutsche Bank AG and Banco Santander SA have devoted just a tiny fraction of their balance sheets to environmentally-sustainable clients, according to newly-disclosed data that the industry warns is incomplete and misleading.

The average green asset ratio stands at 3% for 10 of the largest lenders to have so far reported the figures, which reflect the current revenue mix of borrowers. The ratio stands at 3.3% when based on the capital expenditure of the banks’ clients, a more forward-looking view, according to filings by the lenders this month reviewed by Bloomberg.

European regulators are pushing lenders ...