According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) rose while those of commercial real estate loans (CRELs) decreased in September 2018. With regard to the outstanding balance, both RMLs and CRELs witnessed monthly increases.
New lending approved
In September 2018, new RMLs approved by Macao banks increased by 31.9% month-to-month to MOP9.7 billion. Of which, new RMLs to residents, accounting for 86.2% of the total, rose by 15.9% to MOP8.3 billion. Mainly attributed to new enterprise loans with high denomination, the non-resident component increased to MOP1.3 billion. The monthly average of new RMLs approved between July and September 2018 was MOP7.4 billion, up by 11.4% from the previous period (June to August 2018).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased by 65.9% from the preceding month to MOP171.9 million; of which, the equitable mortgage extended to residents accounted for 89.3% of the total. On an annual basis, new equitable mortgage approved increased by 18.6%.
New CRELs dropped by 65.8% from a relatively high base in the previous month to MOP3.3 billion. Within this total, new CRELs to residents, which occupied 99.8% of the total, decreased by 61.9% to MOP3.3 billion while those to non-residents also fell to MOP5.2 million. The monthly average of new CRELs approved between July and September 2018 was MOP5.7 billion, down by 15.2% when compared with the previous period (June to August 2018).
Outstanding balances
As at end-September 2018, the outstanding value of RMLs was MOP211.1 billion, up by 3.5% from a month earlier or 12.1% 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 3.5% and those to non-residents also went up by 3.4%.
The outstanding value of CRELs was MOP187.2 billion, up by 1.6% month-to-month or 7.8% from a year earlier. Residents accounted for 93.2% of the loans. Compared with a month earlier, outstanding CRELs to residents and to non-residents rose by 1.7% and 0.5% respectively.
Delinquency ratios
At the end of September 2018, the delinquency ratio for RMLs was 0.17%, 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 and from end-September 2017.