Amid U.K. Commercial Property Crisis, Bank Exposure Tops GBP65b
Source: BFW (Bloomberg First Word)
Tickers
SAN SM (Banco Santander SA)
LLOY LN (Lloyds Banking Group PLC)
BARC LN (Barclays PLC)
HSBA LN (HSBC Holdings PLC)
RBS LN (Royal Bank of Scotland Group PLC)
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Key Comm. Real Estate News
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(Bloomberg) -- U.K. banks have total commercial real estate exposure that is almost a third of the lenders’ combined market value as property funds freeze withdrawals in the wake of Britain’s vote to leave the EU.
Alert: HALISTER- U.K. major banks’ total commercial real estate exposure is at least GBP65b, according to the 2015 annual reports of RBS, Lloyds, Santander U.K., Barclays and an estimate from Bernstein for HSBC
- Bloomberg Intelligence analyst Jonathan Tyce says as investors brace for mark-downs of up to 20% on some of those exposures banks will have to take charges that further damp profit and slow capital build
- RBS
- Royal Bank of Scotland says ~70% of exposure to U.K. real estate is to commercial
- Total of investment & development exposure to commercial & residential real estate in U.K. at end 2015 was GBP25.2b
- Of that GBP17.3b was commercial investment & development
- Residential development & investment exposure GBP7.9b
- RBS’s CRE & Residential exposure is 62% of tangible shareholders equity, BI says
- Annual report here
- Royal Bank of Scotland says ~70% of exposure to U.K. real estate is to commercial
- LLOYDS:
- Lloyds says 70% of loans and advances to U.K. real estate related to commercial real estate
- Total at end-2015 was GBP18.1b (so 70% is GBP12.7b)
- Lloyds CRE & Residential exposure is 49% of TSE
- Annual report here
- Lloyds says 70% of loans and advances to U.K. real estate related to commercial real estate
- SANTANDER U.K:
- Santander U.K. total committed exposure to U.K. CRE at end 2015 is GBP10.5b
- GBP876m of that exposure dates from before 2009
- Santander U.K. CRE & Residential exposure is 99% of TSE
- Annual report here
- Santander U.K. total committed exposure to U.K. CRE at end 2015 is GBP10.5b
- BARCLAYS:
- Barclays exposure to U.K. commercial real estate at end 2015 is GBP11.6b
- Barclays CRE & Residential exposure is 23% of TSE
- Annual report here
- Barclays exposure to U.K. commercial real estate at end 2015 is GBP11.6b
- HSBC:
- HSBC total gross loans and advances to European commercial real estate is $26.3b at end 2015 is ~39% of total global CRE loans and advances of $67.9b
- HSBC says portfolio is globally diversified with “larger concentrations” in U.K., Hong Kong, U.S. and Canada
- Bernstein says in note HSBC’s U.K. CRE exposure is below, but close to GBP15b
- HSBC’s European CRE & Residential exposure is 20% TSE
- Annual report here
- Annual report gives only total European exposure, says much of European exposure is in U.K.
- HSBC total gross loans and advances to European commercial real estate is $26.3b at end 2015 is ~39% of total global CRE loans and advances of $67.9b
- De Montfort report showed U.K. banks cut value of defaulted commercial-property loans on their books to ~GBP12.1 at end 2015
- Bernstein says Lloyds, RBS’s U.K. CRE exposure is mostly pre-crisis
- BofAML says buy Aberdeen after CRE concerns hurt asset managers
- SocGen says RBS most exposed to U.K. commercial real estate
- JPMorgan says RBS, Lloyds more exposed to property risks than peers
- Before Brexit vote, Bernstein said house price bubble may burst, hurt U.K. banks
Source: BFW (Bloomberg First Word)
Tickers
SAN SM (Banco Santander SA)
LLOY LN (Lloyds Banking Group PLC)
BARC LN (Barclays PLC)
HSBA LN (HSBC Holdings PLC)
RBS LN (Royal Bank of Scotland Group PLC)
Topics
Key Comm. Real Estate News
To de-activate this alert, click here
UUID: 7947283