Mortgage loans statistics, September 2014

According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) decreased in September 2014. With regard to outstanding balance, RMLs and CRELs both witnessed increases. New lending approved In September 2014, new RMLs approved by Macao banks dropped 9.8% month-to-month to MOP4.6 billion; of which, 96.4% was extended to residents. In terms of value, new RMLs to residents and non-resident decreased 5.9% and 57.4% respectively. When compared with the same period of 2013, new approvals of RMLs witnessed decrease of 0.8%. New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased by 13.1% month-to-month to MOP1.2 billion. The equitable mortgage extended to residents, which accounted for 93.5% of the total, decreased 12.5%. Nevertheless, attributable to the lower base for comparison after the implementation of the Legal Regime for Title Transfer of Buildings Under Construction in June 2013, new RMLs collateralised by uncompleted units expanded 1,426.7% year-on-year. New CRELs decreased by 56.2% month-to-month to MOP4.8 billion; of which, 90.1% was granted to residents. In terms of value, new CRELs to residents deceased 59.7% while non-residents increased 104.8%. On an annual basis, new approvals of CRELs grew by 43.6%. Outstanding balances As at end-September 2014, the outstanding value of RMLs reached MOP146.8 billion, an increase of 1.9% from one month earlier or 29.8% from a year ago. The resident component made up 94.0% of the total. Compared to end-August 2014, outstanding RMLs to residents and non-residents grew 1.9% and 2.5% respectively. Concurrently, the outstanding value of CRELs increased 3.6% from end-August 2014 and was up 42.4% from end-September 2013 to MOP115.6 billion. Residents accounted for 90.9% of the loans. Compared with one month earlier, outstanding CRELs to residents and to non-residents grew 3.8% and 1.0% respectively. Delinquency ratios At the end of September 2014, the delinquency ratio for RMLs reached 0.07%, up 0.01 percentage point from a month ago and 0.03 percentage points from a year ago. The ratio for CRELs was 0.08%, up 0.01 percentage point from a month ago and 0.04 percentage points from end-September 2013.