UK-based Barclays reserved £896 million in the first half of this year to cover possible defaults by borrowers, more than double the amount in the same period last year, it \n \n said Thursday. So far, there are “limited signs of stress” across the bank’s loan portfolios, Anna Cross, group finance director at Barclays, told reporters. Loan loss provisions at Deutsche Bank\n \n jumped 72% to €401 million in the second quarter, Germany’s biggest lender said Wednesday.
“[The sector] is really struggling to refinance its loans at higher rates, and that’s leading to large writedowns for property investors, which will probably hit their lenders too eventually,” he said. Goltermann said losses on consumer loans and mortgages were less of a concern. “With labor markets still in good shape, losses on those types of loans are probably a bit less worrying right now,” he said.