6th Jul 2016 06:46
LONDON (Alliance News) - Lender Secure Trust Bank PLC on Wednesday said it remains well-positioned to navigate through post-Brexit uncertainty and has "virtually no" exposure to commercial property lending.
Secure Trust said it has long regarded commercial property lending as "potentially higher risk and has had limited appetite for this sort of lending which is governed by very restrictive credit policies."
As a result, the company has almost no exposure to commercial property lending on its books with total lending balances at GBP31.0 million at June 24. It said the majority of this debt is secured and risk assessed against residential property which incorporates small elements of commercial property.
The commercial property market has come under severe pressure since the UK voted to leave the European Union, with three fund managers having suspended trading in commercial property funds this week alone following a surge in redemptions.
In addition, Secure Trust said it has zero lending balances to regulated buy-to-let lending.
"The board believes Secure Trust Bank remains well positioned to navigate the uncertainties arising following the EU referendum and to pursue its strategic priorities," the company said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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