Lloyds looking to expand European loan book

One UK lender looking at grass shoots of recovery for European projects is Lloyds Bank, the country’s second biggest, which has featured in these REFIRE pages more frequently over the past years as a seller of German sub- or non-performing loan packages than as a bank anxious for further engagement in the market.

That may be about to change, as signified by a big reception hosted by Lloyds at the MIPIM in Cannes recently. John Feeney, head of corporate real estate, said in a media interview that the bank is looking to step up lending to real estate buyers in mainland Europe as competition among lenders hots up in the UK – not least because some overseas banks, notably German, are able to offer more attractive deals in the UK than post-crisis local banks oppressed by local banking regulations.

As Lloyds’ bad loan selloff programme nears its end, the bank is now freeing up resources for more active lending across Europe. Last year the bank made 7 billion pounds of new real estate loans, and Feeney said the markets now in focus must have “a reliable enforcement regime and a decent amount of liquidity, so we are looking at opportunities in France, Germany, the Netherlands, and potentially Scandinavia.” For the moment lending is for existing UK clients, he said.