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 increased in March 2019. With regard to the outstanding balance, both RMLs and CRELs witnessed monthly increases.
New lending approved
In March 2019, new RMLs approved by Macao banks rose by 85.8% month-to-month to MOP3.4 billion. Of which, new RMLs to residents, representing 96.3% of the total, grew by 82.9% to MOP3.3 billion; the non-resident component also increased by 215.2% from a relatively low base to MOP124.6 million. The monthly average of new RMLs approved between January and March 2019 was MOP3.2 billion, down by 3.0% from the previous period (December 2018 to February 2019).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) grew month-to-month by 107.7% to MOP788.8 million; of which, the equitable mortgage extended to residents accounted for 90.5% of the total. On an annual basis, new equitable mortgage approved rose by 53.3%.
New CRELs increased by 44.2% month-to-month to MOP4.7 billion. Within this total, new CRELs to residents, which occupied 98.9% of the total, rose by 47.0% to MOP4.6 billion. On the other hand, new CRELs to non-residents decreased by 47.0% to MOP50.1 million. The monthly average of new CRELs approved between January and March 2019 was MOP4.6 billion, down by 6.0% as compared with the previous period (December 2018 to February 2019).
Outstanding balances
As at end-March 2019, the outstanding value of RMLs was MOP218.8 billion, up by 0.4% from a month earlier or 14.8% from a year ago. The resident component made up 93.1% of the total. When compared with the preceding month, outstanding RMLs to residents increased 0.7% whereas those to non-residents dropped by 3.0%.
The outstanding value of CRELs was MOP196.4 billion, up by 0.1% month-to-month or 4.0% from a year earlier. Residents accounted for 93.4% of the loans. Compared with a month earlier, outstanding CRELs to residents increased by 0.1% whereas those to non-residents fell by 0.1%.
Delinquency ratios
At the end of March 2019, the delinquency ratio for RMLs stood at 0.17%, which remained broadly stable from a month ago but down by 0.03 percentage points over a year earlier. The ratio for CRELs was 0.21%, up by 0.04 percentage points from the preceding month or 0.07 percentage points from end-March 2018.