According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) rose from the previous month while those of commercial real estate loans (CRELs) dropped in May 2017. With regard to the outstanding balance, RMLs increased whereas CRELs posted a slight monthly decline.
New lending approved
In May 2017, new RMLs approved by Macao banks rose by 70.7% month-to-month to MOP5.7 billion. Of which, new RMLs to residents, accounting for 74.1% of the total, increased 29.9% to MOP4.2 billion. Mainly attributed to the approval of enterprise loans with residential properties as collaterals, the non-resident component increased to MOP1.5 billion. When compared with the same period of 2016, new approvals of RMLs increased by 6.3%.
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 17.6% from a month earlier to MOP443.1 million. The equitable mortgage extended to residents, which accounted for 96.7% of the total, increased by 18.5%. Attributable to a higher comparison base in the same period of 2016, new equitable mortgage approved dropped by 78.7% year-on-year.
New CRELs fell by 15.5% month-to-month to MOP3.3 billion; of which, new CRELs to residents, accounting for 65.5% of the total, decreased by 44.0%. In contrast, new CRELs to non-residents rose to MOP1.2 billion, mainly driven by new loans granted to enterprises collateralised by retail premises. On an annual basis, new approvals of CRELs grew by 16.8%.
Outstanding balances
As at end-May 2017, the outstanding value of RMLs was MOP184.5 billion, up by 0.7% from the previous month or 5.2% from a year ago. The resident component made up 93.5% of the total. When compared with one month earlier, outstanding RMLs to residents and non-residents rose by 0.1% and 9.5% respectively.
The outstanding value of CRELs was MOP168.9 billion, down 0.4% from a month ago but up 1.7% year-on-year. Residents accounted for 89.5% of the loans. Compared with a month earlier, outstanding CRELs to residents fell by 0.8% whereas those to non-residents rose by 3.4%.
Delinquency ratios
At the end of May 2017, the delinquency ratio for RMLs was 0.18%, up 0.02 percentage points from a month ago or 0.07 percentage points from a year earlier. The ratio for CRELs was 0.14%, up by 0.01 percentage point from the preceding month or 0.12 percentage points from end-May 2016.