dmu benchmark report
TRANSCRIPT
DE MONTFORT CRE Benchmark report
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Contact: Nicole Lux (Dr)
Senior Research Fellow DE MONTFORT UNIVERSITY
Leicester, LE1 9BH T: +44 (0)116 250 6438
Banks are dealing with multiple demands that include increased regulatory scrutiny and reporting; performance benchmarking of CRE portfolio credit risk and evaluation of risk capital allocation.
Historic findings on CRE loan performance show that default rates were dependent on property type which losses correlated with loan vintage and property cycle.
The De Montfort CRE 3yr loan benchmark report is designed to support internal bank reporting, and provide competitor & profitability analysis.
Analysis approach
• Analyse CRE lending portfolio and monitor income & loss performance against the rest of the market
• Benchmark CRE loan performance and assess market opportunities
• Assess capital allocation and evaluate new markets and forecast income & performance
Report includes
• Lending terms benchmark
• Default risk & provision benchmark
• Loan portfolio structure benchmark
• LTV, ICR benchmark
Data confidentiality
• Any benchmark selection is subject to maintining data confidentiality; hence any benchmark includes a minimum of 6 organisations.
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Participations(club/syndications)
Club deals
Securitised loan
Syndicated loan
Bilateral loan
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Benchmark
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<50% <50% -70%
>70% -85%
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>100%- 120%
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Bank Benchmark
DMU 3 yr Benchmark report
DE MONTFORT CRE Benchmark report
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Permission requests to use content, quotations or extracts from the report, should be addressed to [email protected]
The opinions and commentary in the report are those of the author(s) and not necessarily those of DMU; the opinions expressed in this report should not be attributed in any way to the 3rd parties whom contribute data to the report or whom financial supporter or sponsor the reports publication.
Commentary in the report is based on likely industry developments at the time, future trends or events based on information known to the authors at the date of publication, and such commentary should not be relied upon as a basis of financial investment. The report’s authors and publisher accept no responsibility, whatsoever, on decisions based on the report which should not be relied upon as a basis for entering into transactions without seeking specific, qualified, professional advice.
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DE MONTFORT CRE Benchmark report