Bank of Ireland became the latest to flag worries about commercial real estate as it announced higher provisions linked to the sector, and saw its shares tumble on Monday. Alongside annual results, Bank of Ireland
BIRG,
-11.21%
reported that its underlying net credit impairment charge climbed to €403 million ($436 million) in 2023 from €187 million in 2022.
“This charge reflected loan loss experience in the period; and additional management adjustments to address potential risks, primarily in commercial real estate,” said Myles O’Grady, the bank’s group chief executive, in a statement. The bank expects an impairment charge in thelow 30s basis points for 2024. Bank of Ireland shares slumped 11% and are now down 21% over the last 52 weeks. It was the worst performing component of the Stoxx Europe 600
XX:SXXP
on Monday. The commercial real estate sector has been increasingly in focus since New York Community Bancorp
NYCB,
-2.16%
in January signaled problems in the office-space sector, which has been dogged by inflation, higher interest rates and post-COVID 19 work-from-home trends. U.S. regulators deemed the sector a top financial risk to the U.S. economy in 2024, while the European Central Bank earlier this month cautioned lenders that capital requirements would rise if they do not keep a lid on CRE, B …
Article Attribution | Read More at Article Source
BIRG,
-11.21%
reported that its underlying net credit impairment charge climbed to €403 million ($436 million) in 2023 from €187 million in 2022.
“This charge reflected loan loss experience in the period; and additional management adjustments to address potential risks, primarily in commercial real estate,” said Myles O’Grady, the bank’s group chief executive, in a statement. The bank expects an impairment charge in thelow 30s basis points for 2024. Bank of Ireland shares slumped 11% and are now down 21% over the last 52 weeks. It was the worst performing component of the Stoxx Europe 600
XX:SXXP
on Monday. The commercial real estate sector has been increasingly in focus since New York Community Bancorp
NYCB,
-2.16%
in January signaled problems in the office-space sector, which has been dogged by inflation, higher interest rates and post-COVID 19 work-from-home trends. U.S. regulators deemed the sector a top financial risk to the U.S. economy in 2024, while the European Central Bank earlier this month cautioned lenders that capital requirements would rise if they do not keep a lid on CRE, B …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]