CRE books at Goldman, Morgan Stanley most laden with provisions
Duo increased allowance coverage fastest among top US banks since September 2022
Goldman Sachs and Morgan Stanley have outpaced other US lenders in provisioning commercial real estate (CRE) exposures, topping the league in terms of allowance coverage of their portfolios in the third quarter, analysis by Risk Quantum shows.
Allowances as of end-September totalled 4.3% of Goldman’s held-for-investment CRE portfolio, measured at amortised cost, and 3.6% of Morgan Stanley’s – up 269 basis points and 198bp year on year, respectively.
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