Royal Bank of Scotland on Thursday said it had reduced its commercial real estate loan portfolio by 14% in 2011, bringing the decrease to 25% over the past two years.
Royal Bank of Scotland on Thursday said it had reduced its commercial real estate loan portfolio by 14% in 2011, bringing the decrease to 25% over the past two years.
By end-December 2011, the bank’s commercial real estate portfolio totalled £74.8 bn (EUR 89 bn). Most of the decrease relates to non-core properties, due to run-offs and asset sales, RBS said in a statement. The non-core portfolio accounted for £34 bn (EUR 40.4 bn) or 46% of the total portfolio at the end of 2011, the bank said.
‘The commercial is expected to remain challenging in key markets and new business will be accommodated from run-off or existing core exposure,’ RBS, 83%-owned by the British government, said.