Investors have wondered when the pain from the downturn in commercial property would hit banks. The past 24 hours showed it is happening right now, with lenders on three continents disclosing damage and two bank leaders resigning.
Tokyo-based Aozora Bank shares fell more than 20% on Thursday, the maximum allowed on a single day under stock market rules, after it said losses in its U.S. office-loan portfolio will likely lead to a net loss for the year ending in March. It would be its first annual loss in 15 years. Its president will step down on April 1, the bank said.
In Switzerland, the private bank Julius Baer said Chief Executive Philipp Rickenbacher resigned after the company took a roughly $700 million provision on loans it said it may not get back from the Austrian property landlord Signa Group. The group said it would shut down the unit that made the loans.
Deutsche Bank said it increased loss provisions in its U.S. commercial loan book nearly fivefold from 2022’s fourth quarter to 123 million euros, equivalent to $133 million.
Here are the top political news stories for today.
@GleefulL3ftyRepublican2yrs2Y
Now a small Japanese bank is seeing it's shares crushed by losses in US Commercial Real Estate. That's two banks in less than 24 hours
Are we calling this a crisis yet?
Regional banks are going to be dropping like flies. It's amazing how even after the clear examples of SVB, Signature, First Republic and Silvergate and the Fed intervention, speculators like
Bill Gross still went long regional banks and REITs back in October 2023.
It would be interesting to see how the Japanese banks are marking the US real estate vs US banks
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