Wells Fargo Warns of More Office-Market Stress On The Way
- Lender boosted provisions because of commercial-property loans
- Bank cautions that it isn’t seeing meaningfully higher losses
This article is for subscribers only.
Wells Fargo & Co. warned about shakiness in the commercial real estate market and said it’s reviewing its more than $35 billion portfolio of office loans for ways to decrease risk.
The lender has been boosting its allowance for credit losses on office loans for the past four quarters, Chief Financial Officer Mike Santomassimo said on the bank’s first-quarter earnings call Friday. Provisions ticked higher in the first three months of the year in part because of commercial real estate loans, the bank said in a statement.