Skip to main navigation

2012 real estate nonperforming loan investor survey - CRE loans - EY - Global

2012 real estate nonperforming loan investor survey

CRE loans weigh on smaller banks

  • Share
CRE loans constituted only 7% of the total assets of the top 100 banks compared with 26% of the total assets of the remaining banks.

Banks continue to deal with nonperforming commercial real estate (CRE) loans, a legacy of the recession. At most banks, these loans remain at elevated levels.

CRE exposure

In general, the smaller the bank, the greater the CRE exposure.

Of the US$10.9 trillion of assets of the top 100 banks at the end of Q3 2011, CRE loans accounted for US$784 billion.

Likewise, the CRE loans held by the remaining banks totaled US$750 billion. The difference is that CRE loans constituted only 7% of the total assets of the top 100 banks compared with 26% of the total assets of the remaining banks.

US Bank CRE loans, Q3 2011

Total assets

CRE loans

Percentage of balance sheet

All banks(7.445 banks)US$13.8 trillionUS$1.53 trillion11%
Top 100 banksUS$10.9 trillionUS$784 billion7%
Remaining banks (7,345 banks)US$2.9 trillionUS$750 billion26%

Source: http://www.fdic.gov/

Generally, the CRE loans on the books of the top 100 banks, which include some of the world’s largest banks, tend to be on large, high-profile properties such as office towers, regional shopping centers and high-rise apartments in gateway cities and other leading markets in the US.

The remaining banks are regional or community banks that have made thousands of construction loans and acquisition and development loans on small office buildings, retail establishments, apartments or condominiums, motels, movie theaters and other real estate in regional or local markets across the US.














<< Previous | Next >>

Contents


EY - 2012 real estate nonperforming loan investor survey

Contact us


Related content

EY - 2012 real estate nonperforming loan investor survey
2011 Construction, Engineering and Infrastructure roundtable
What are the leaders of the construction, engineering and infrastructure industries focused on? Our 10th annual CEO/CFO roundtable coverage explains.

Outlook for the EMEIA real estate and hotel sectors
Prepare for 2012 and beyond with insights from our sixth annual EMEIA Real Estate Workshop and our EMEIA hotel outlook.
Back to top