HSBC's (HSBC) commercial real estate loans marked as having increased credit risk had almost tripled since the start of the year, with those classified as "impaired" rising to $5.1 billion from $4.5 billion, the Financial Times reported Tuesday.

This means that 73% of the bank's commercial real estate loans either are impaired or have increased credit risk, up from less than 30% a year ago, according to the report.

Hang Seng Bank, HSBC's Hong Kong lender, had a non-performing loan ratio of 6.7% at the end of June, an all-time high, FT said, citing data compiled by Goldman Sachs.

HSBC Chief Executive Georges Elhedery said the bank's real estate clients in Hong Kong were working "through some short-term challenges," but the bank was confident "in the supply and demand dynamic in Hong Kong and the appeal of Hong Kong real estate at large" in the medium to long term," the report said.

HSBC did not immediately reply to a request for MT Newswires.

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