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Real estate loans built up this bank’s reputation, now write-offs are sending its shares Plummeting

Real estate ,both commercial and residential is weakening across major countries which was the beneficiary of cheap money. In India builder loans got a new lease of life when NBFC and HFC needed a high margin business line to offset lower margin from  highly competitive mortgage business….A bank in US”Bank OZK lost more than a quarter of its value on Friday after the Arkansas-based lender (formerly known as Bank of the Ozarks) wrote off about $46 million in commercial real estate loans on two unrelated projects in North Carolina and South Carolina.
Though the projects, which have been in the bank’s portfolio for about 10 years, already had been classified as “substandard,” the bank said new appraisals “reflected the recent poor performance of each project” ‒ an indoor shopping mall and a residential project”

Only when the tide turns you come to know who is swimming naked

https://www.forbes.com/sites/elyrazin/2018/10/22/commercial-loans-built-up-bank-ozks-reputation-now-cre-write-offs-are-sending-shares-plummeting/#438f7b835d5f