Royal Bank of Scotland removed £4.2bn of gross commercial real estate loans from the books of its internal “bad bank” in the first three months of the year.
RBS Capital Resolution (RCR) – the division disposing of the bank’s non-core interests – reduced the total by a third to £8.4bn from £12.6bn. The reduction included £2.55bn of write-offs. Against the remaining loans it has £5.1bn of provisions.
Within RCR, Ulster Bank, RBS’s Irish division, saw its commercial real estate loan exposure chopped by £3.5bn or 39.8% to £5.3bn. The reduction was made up largely of write-offs – £2.34bn. Of the total that remains, £1.7bn is held against standing assets and £3.6bn against development assets. Provisions held against the remaining £5.3bn total £4.3bn.
RCR’s real estate commercial banking exposure decreased marginally by £200m or 12.5% to £1.4bn. The reduction included £64m of write-offs. Of this total that remains £1bn is made up of loans secured against standing assets and £400m against development assets. Provisions held against the remaining £1.4bn total £300m.
The commercial investment banking segment reduced its exposure by £500m to £1.7bn or 22.7%. The reduction included £138m of write-offs. Of the total that remains, £1.5bn is held against standing assets and £200m against development assets. Provisions held against the remaining £1.7bn total £500m.
