HSBC Slashes Commercial Property Exposure in US, UK to Limit Losses
- US portfolio is less than half the size it was pre-Covid: CEO
- Quinn says demand for commercial property ‘a lot lower today’
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HSBC Holding Plc slashed its exposure to commercial real estate in both the US and UK last year, the latest sign that lenders are looking to limit their losses as office occupancy rates in major cities continue to plummet.
The bank’s US commercial property portfolio is now less than half the size it was before the coronavirus pandemic, Chief Executive Officer Noel Quinn said in an interview with Bloomberg Television. Last year, the bank’s exposure to the US market fell 27% to $3.9 billion, the biggest drop of any geography, filings show.