- A number of U.S. banks saw continued pain in the third quarter on delinquent commercial real estate loans in their portfolios, as stress in the sector persists.
"This is going to go on for at least a year, where NPLs continue to rise, followed by charge-offs - it's going to be really ugly," said Rebel Cole, a finance professor at Florida Atlantic University. Other banks' earnings in the past week showed similar challenges facing CRE holdings. On Tuesday, Goldman Sachs disclosed that it had reduced its exposure to office-related CRE holdings by roughly 50% this year.
Small banks hold 4.4 times more exposure to CRE loans than their larger peers, JPMorgan found earlier this year. Citigroup found that regional or smaller lenders hold 70% of CRE loans. In addition, the bank's allowance for credit losses increased $333 million in the third quarter driven primarily by CRE. It saw a $1.3 billion increase in its office CRE nonaccrual loans.
Telecom stocks such as BCE offer exposure to high dividend yields, stable and resilient results, and security. The post Telecom Titans: Canada’s High Dividend Yielding Communication Stocks appeared first on The Motley Fool Canada.TORONTO — Scotiabank is cutting about three per cent of its global workforce as a result of changes at the bank and customers' day-to-day banking preferences, as well as ongoing efforts to streamline operations, the bank announced Wednesday.
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