According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) dropped from the previous quarter in the first quarter of 2011. On outstanding balance, increases were observed in both RMLs and CRELs. New Lending Approved For the first quarter of 2011, new RMLs approved by Macao banks decreased by 18.8% quarter-to-quarter to MOP8.5 billion; of which, 94.0% was extended to residents. In terms of approved value, new RMLs to residents and to non-residents dropped 17.9% and 31.0% respectively. When compared with the same period of 2010, new approvals of RMLs increased by 21.7%. After registering decline in the previous quarter, new CRELs approved decreased further by 17.6% quarter-to-quarter to MOP6.2 billion in the first quarter of 2011; of which, 87.3% was granted to residents. In terms of approved value, new CRELs to residents and non-residents dropped by 17.3% and 19.1% respectively. On an annual basis, new approvals of CRELs rose by 17.1%. Outstanding Balances As at end-March 2011, the outstanding value of RMLs reached MOP65.2 billion, an increase of 6.6% from three months earlier or 34.8% from a year ago. The resident component made up 90.4% of the total. Outstanding RMLs to residents grew by 7.4% whereas outstanding RMLs to non-residents edged down by 0.1% from three months earlier. Concurrently, the outstanding value of CRELs rose 3.8% from end-December 2010 or 29.4% from end-March 2010 to MOP50.8 billion. Residents accounted for 89.0% of the loans. Outstanding CRELs to residents and non-residents rose 3.2% and 9.3% respectively from three months earlier. Delinquency Ratios At the end of March 2011, the delinquency ratio for RMLs stood at 0.09%, down 0.01 percentage point from three months earlier or 0.06 percentage points from a year ago. The ratio for CRELs went up 0.24 percentage points from end-December 2010 or 0.08 percentage points from end-March 2010, to 0.41%.
