On the heels of a profit warning from New York Community Bancorp that was at least partly due to the deteriorating office loan market, a Japanese bank cut the value of some of its own U.S. office loans by more than 50%. Aozora Bank shares
8304,
-21.49%
slumped 21%, as it was the worst-performing stock in the Nikkei 225
JP:NIK
on Thursday, after cutting its annual profit forecast by 52% and its revenue forecast by 35%.
Aozora Bank said the U.S. office market faces adverse conditions due to higher U.S. interest rates and a shift to remote work. It cut the value of its non-performing office loans by 58%, including a 63% reduction in Chicago, and reductions between 51% and 59% in New York, Washington D.C., Los Angeles and San Francisco. Its commentary on the Chicago market was particularly bleak: “A considerable amount of time is required to recover supply and demand balances in urban areas. The volume of property sales remains very low.” It was a bit more positive on New York, as it said supply and demand is expected to recover in Manhattan earlier than other cities. U.S. office loans of $1.89 billion were 6.6% of its total, and it classified 21 of those office loans worth $719 million as non-performing. It boosted its loan-loss reserve ratio on U.S. o …
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8304,
-21.49%
slumped 21%, as it was the worst-performing stock in the Nikkei 225
JP:NIK
on Thursday, after cutting its annual profit forecast by 52% and its revenue forecast by 35%.
Aozora Bank said the U.S. office market faces adverse conditions due to higher U.S. interest rates and a shift to remote work. It cut the value of its non-performing office loans by 58%, including a 63% reduction in Chicago, and reductions between 51% and 59% in New York, Washington D.C., Los Angeles and San Francisco. Its commentary on the Chicago market was particularly bleak: “A considerable amount of time is required to recover supply and demand balances in urban areas. The volume of property sales remains very low.” It was a bit more positive on New York, as it said supply and demand is expected to recover in Manhattan earlier than other cities. U.S. office loans of $1.89 billion were 6.6% of its total, and it classified 21 of those office loans worth $719 million as non-performing. It boosted its loan-loss reserve ratio on U.S. o …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]