According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) fell from the previous month while those of commercial real estate loans (CRELs) increased in June 2017. With regard to the outstanding balance, RMLs and CRELs both increased.
New lending approved
In June 2017, new RMLs approved by Macao banks fell by 15.5% month-to-month to MOP4.8 billion. Of which, new RMLs to residents, accounting for 97.8% of the total, increased 11.5% to MOP4.7 billion. The non-resident component dropped 92.7% from a higher comparison base in the previous month to MOP108.3 million. When compared with the same period of 2016, new approvals of RMLs increased by 3.0%.
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 64.6% from a month earlier to MOP729.5 million, mainly attributed to the approval of enterprise loans collateralised by uncompleted units. Attributable to a lower comparison base in the same period of 2016, new equitable mortgage approved soared by 198.5% year-on-year.
New CRELs rose by 82.1% month-to-month to MOP6.1 billion; of which, new CRELs to residents, accounting for 98.1% of the total, surged by 172.6% to MOP6.0 billion, mainly driven by new loans granted to enterprises collateralised by commercial buildings and land. In contrast, new CRELs to non-residents fell by 89.9% from a higher comparison base in the previous month to MOP116.2 million. On an annual basis, new approvals of CRELs decreased by 6.1%.
Outstanding balances
As at end-June 2017, the outstanding value of RMLs was MOP185.8 billion, up by 0.7% from a month earlier or 5.2% from a year ago. The resident component made up 93.8% of the total. When compared with the previous month, outstanding RMLs to residents increased by 0.9% whereas those to non-residents decreased by 2.9%.
The outstanding value of CRELs was MOP172.7 billion, up 2.2% month-to-month or 2.1% year-on-year. Residents accounted for 89.2% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents rose by 2.0% and 4.7% respectively.
Delinquency ratios
At the end of June 2017, the delinquency ratio for RMLswas 0.16%, down 0.02 percentage pointsfrom a month ago but up 0.06percentage points over a year earlier.The ratio for CRELs was 0.14%, virtually unchanged from the preceding month but up 0.12 percentage points from end-June 2016.