HKMC's financial results highlights for first half of 2017

Hong Kong (HKSAR) - The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Mortgage Corporation Limited (HKMC) today (October 9) announced the highlights of its unaudited financial results for the first six months of 2017 (1H 2017) as follows:
2017 Half-Year Financial Results Highlights
  • Unaudited consolidated profit after tax was HK$578 million (1H 2016: HK$296 million)
  • Annualised return on shareholders' equity was 12.6% (1H 2016: 6.6%)
  • Cost-to-income ratio was 19% (1H 2016: 29.3%)
  • Capital adequacy ratio was 20.7% as at June 30, 2017 (December 31, 2016: 21.3%)

2017 Half-Year Business Performance Highlights
Asset Purchase
  • Purchased HK$19 million loan assets (1H 2016: HK$19 million)
  • Outstanding principal balance of the loan portfolio was HK$8.5 billion as at June 30, 2017 (December 31, 2016: HK$9.5 billion)

Debt Issuance
  • Issued in total HK$14.3 billion corporate debts* (1H 2016: HK$15.4 billion), being a major and active corporate debt issuer in Hong Kong
  • Outstanding balance of debt securities was HK$33.3 billion as at June 30, 2017 (December 31, 2016: HK$34.2 billion)
  • Credit ratings of AA+ from S&P Global Ratings and Aa2 from Moody's, same as those of the Hong Kong Special Administration Region Government

Mortgage Insurance Programme (MIP)
  • New mortgage loans drawn down amounted to HK$15.9 billion (1H 2016: HK$7.8 billion)
  • 87% of loans drawn down (in terms of loan amount) were secured on properties in the secondary market, demonstrating the importance of the MIP to homebuyers in the secondary market

SME Financing Guarantee Scheme
  • Approved 577 applications under the Special Concessionary Measures (i.e. the 80% guarantee product) with a total loan amount of approximately HK$2.2 billion (91% of the benefitted borrowers since launch of the 80% guarantee product were small enterprises with less than 50 employees)

Reverse Mortgage Programme/Premium Loan Insurance Scheme
  • Approved 344 applications under the Reverse Mortgage Programme, with an average property value of HK$5 million and average monthly payout of HK$15,200
  • No application was approved under the Premium Loan Insurance Scheme

Microfinance Scheme
  • Approved nine applications with a total loan amount of HK$2.08 million

     Further details of the HKMC's unaudited consolidated financial results and financial review for 1H 2017 are set out at Annex.
* Debts with tenor of one year or above.

Published on: 2017-10-09

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