According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) decreased while those of commercial real estate loans (CRELs) increased in October 2019. With regard to the outstanding balances, RMLs increased whereas CRELs witnessed a decline.
New lending approved
In October 2019, new RMLs approved by Macao banks dropped by 5.4% month-to-month to MOP3.5 billion. Of which, new RMLs to residents, representing 97.1% of the total, decreased by 6.8% to MOP3.4 billion. On the other hand, the non-resident component grew by 94.0% to MOP100.6 million. The monthly average of new RMLs approved between August and October 2019 was MOP3.8 billion, down by 9.9% from the previous period (July to September 2019).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) declined month-to-month by 6.2% to MOP248.2 million. On an annual basis, new equitable mortgage approved fell by 27.4%.
New CRELs rose by 122.4% month-to-month to MOP6.45 billion. Within this total, new CRELs to residents, which occupied 99.7% of the total, surged by 147.0% to MOP6.43 billion whereas those to non-residents dropped by 94.1% to MOP17.5 million. The monthly average of new CRELs approved between August and October 2019 was MOP4.2 billion, up by 41.4% as compared with the previous period (July to September 2019).
Outstanding balances
As at end-October 2019, the outstanding value of RMLs was MOP229.1 billion, which rose by 0.3% from a month earlier or 7.4% from a year ago. Of which, the resident component made up 93.5% of the total. When compared with the previous month, outstanding RMLs to residents increased by 0.4% whereas those to non-residents decreased by 1.0%.
The outstanding value of CRELs fell by 0.7% month-to-month or 4.5% from a year earlier to MOP182.0 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.3% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents dropped by 0.7% and 0.6% respectively.
Delinquency ratios
At the end of October 2019, the delinquency ratio for RMLs stood at 0.24%, unchanged from a month ago but up by 0.06 percentage points over a year earlier. The ratio for CRELs was 0.39%, up by 0.02 percentage points from a month ago or 0.23 percentage points from end-October 2018.