You may remember us flagging concerns in June 2023 that Commercial Real Estate (CRE) problems may just be starting. You can find that article
here.
Now Bank of Ireland has raised concerns over the CRE sector as it disclosed increased provisions linked to this area and witnessed a decline in its shares today the 26th February 2024 (8 moths after we wrote that article).
In its annual results, Bank of Ireland (BIRG, -10.49%) revealed a rise in its underlying net credit impairment charge to €403 million ($436 million) in 2023 from €187 million in 2022.
Myles O’Grady, the bank’s group chief executive, stated, "This charge reflects both the loan loss experience in the period and additional management adjustments to address potential risks, primarily within the commercial real estate domain." The bank anticipates an impairment charge in the low 30s basis points for 2024.
Bank of Ireland's shares ...
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