Royal Bank of Scotland today revealed it slashed its commercial property loans and assets by £11bn to £87bn in 2010, while losses on its property loans continued to increase.
A 130% increase in losses from its Irish loans, from £303m to £699m, lead to an overall property lending deficit of £3.3bn compared with £3.2bn a year earlier.
RBS warned that new lending to the property industry this year is likely to be limited.
The bank said it expected to continue to reduce its exposure to the property industry over the next 12 months.
Less then half of its property loanbook (£43bn) is considered non-core and does not require repayment until 2014.
Just over £45bn of RBS’s property loans are managed normally, with annual revaluations.
Some £9.2bn is on a credit-watch list of potential future problems, down from £17.9bn in 2009.
Meanwhile, £32.2bn is being managed by the bank’s global restructuring group, up from £22.2bn the year before.
nick.whitten@estatesgazette.com
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