Barclays has seen little sign of distress in its UK commercial real estate loan book but has warned that the wider sector “remains under pressure” from various economic challenges.
In annual results published today, the bank said its exposure to UK commercial real estate stood at £9.7bn, largely stable compared to £10bn a year ago. Some 81% of that was classed as stage 1, meaning the credit risk has not increased significantly since initial recognition. Exposure at stage 3, where the asset is credit impaired, was 2%.
Despite noting that its loan portfolio was well collateralised, Barclays acknowledged stress in the wider market.
