According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both rose in August 2018. With regard to the outstanding balance, RMLs increased from a month earlier whereas CRELs witnessed a monthly decrease.
New lending approved
In August 2018, new RMLs approved by Macao banks increased by 40.3% month-to-month to MOP7.3 billion. Of which, new RMLs to residents, accounting for 98.1% of the total, rose by 39.8% to MOP7.2 billion; the non-resident component also grew by 67.4% to MOP141.5 million. The monthly average of new RMLs approved between June and August 2018 was MOP6.7 billion, up by 13.9% from the previous period (May to July 2018).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased by 20.0% from the preceding month to MOP503.7 million. The equitable mortgage extended to residents, which accounted for 89.2% of the total, dropped by 24.1% from the previous month. On an annual basis, new equitable mortgage approved swelled by 276.3% from a relatively low base.
New CRELs rose by 138.6% month-to-month to MOP9.8 billion. Within this total, new CRELs to residents, which occupied 89.8% of the total, surged by 116.3% to MOP8.8 billion, mainly driven by new enterprise loans with high denomination. Meanwhile, the non-resident component also advanced to MOP997.4 million. The monthly average of new CRELs approved between June and August 2018 was MOP6.8 billion, up by 50.6% when compared with the previous period (May to July 2018).
Outstanding balances
As at end-August 2018, the outstanding value of RMLs was MOP203.6 billion, up by 2.0% from a month earlier or 8.2% from a year ago. The resident component made up 92.6% of the total. When compared with the previous month, outstanding RMLs to residents rose by 2.1% and those to non-residents also edged up 0.4%.
Attributable to the repayment of loans with high denomination, the outstanding value of CRELs decreased by 6.7% month-to-month but up 7.0% from a year earlier to MOP184.2 billion. Residents accounted for 93.2% of the loans. Compared with a month earlier, outstanding CRELs to residents and to non-residents fell by 3.5% and 36.1% respectively.
Delinquency ratios
At the end of August 2018, the delinquency ratio for RMLs was 0.17%, virtually unchanged from a month earlier but down by 0.02 percentage points over a year earlier. The ratio for CRELs was 0.15%, up by 0.01 percentage point from a month ago but unchanged from end-August 2017.