Capital One’s CRE charge-offs creep back up
Office property segment pummelled hardest, as charge-off rates increase twelvefold in Q4
Charge-off rates within Capital One’s commercial real estate (CRE) loan portfolio all but doubled in the last quarter of 2024, suggesting that the fallout from falling property prices is unfolding in multiple waves, at least for some banks.
The net annualised charge-off rate rose to 0.50%, up from 0.26% in Q3, marking the highest level in a year. The office property segment was particularly affected, with the charge-off rate skyrocketing from 0.71% to 8.43% – a twelvefold increase.
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