HKMC's financial results highlights for 2017

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

     The Hong Kong Mortgage Corporation Limited (HKMC) today (April 13) announced the highlights of its audited financial results for 2017 as follows:

2017 Financial Results Highlights
  • Consolidated profit after tax was HK$806 million (2016: HK$604 million);
  • Return on shareholders' equity was 8.6% (2016: 6.8%);
  • Cost-to-income ratio was 26.8% (2016: 30.8%);
  • Capital adequacy ratio was 21.0% as at December 31, 2017 (December 31, 2016: 21.3%); and
  • No dividend was declared (2016: Nil).
2017 Business Performance Highlights
Asset Purchase
  • Purchased HK$316 million loan assets (2016: HK$206 million); and
  • Outstanding principal balance of the loan portfolio was HK$7.8 billion at the end of 2017 (2016: HK$9.5 billion).
Debt Issuance
  • Issued in total HK$17.9 billion corporate debts* (2016: HK$16.2 billion), being a major and active corporate debt issuer in Hong Kong;
  • Outstanding balance of debt securities was HK$34.8 billion at the end of 2017 (2016: HK$34.2 billion); and
  • Credit ratings of AA+ from S&P Global Ratings and Aa2 from Moody's, same as those of the Hong Kong Special Administrative Region Government.
Mortgage Insurance Programme (MIP)
  • New mortgage loans drawn down amounted to HK$32.3 billion (2016: HK$24.6 billion); and
  • 86% of the loans drawn down (in terms of the 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 1 406 applications under the Special Concessionary Measures (i.e. 80% guarantee product) with a total loan amount of approximately HK$5.6 billion in 2017 (91% of the benefitted borrowers since launch of the 80% guarantee product were small enterprises with less than 50 employees).
Reverse Mortgage Programme
  • Approved 757 applications (2016: 429 applications) under the Reverse Mortgage Programme, with an average property value of HK$5.1 million and average monthly payout of HK$15,200.
     Further details of the HKMC's consolidated financial results and financial review for 2017 are set out at Annex.
* For debts with tenor of one year or above.

Published on: 2018-04-13

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