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 decreased in November 2019. With regard to the outstanding balances, RMLs increased whereas CRELs witnessed a decrease.
New lending approved
In November 2019, new RMLs approved by Macao banks declined by 2.9% month-to-month to MOP3.42 billion. Of which, new RMLs to residents, representing 99.1% of the total, fell by 0.9% to MOP3.39 billion; the non-resident component also dropped by 70.7% to MOP29.5 million. The monthly average of new RMLs approved between September and November 2019 was MOP3.6 billion, down by 6.1% from the previous period (August to October 2019).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) grew by 38.3% month-to-month to MOP343.2 million. On an annual basis, new equitable mortgage approved fell by 29.0%.
New CRELs dropped by 63.4% from the relatively high base last month to MOP2.36 billion. Within this total, new CRELs to residents, which occupied 99.0% of the total, decreased by 63.6% to MOP2.34 billion whereas those to non-residents increased by 29.4% to MOP22.7 million. The monthly average of new CRELs approved between September and November 2019 was MOP3.9 billion, down by 7.3% as compared with the previous period (August to October 2019).
Outstanding balances
As at end-November 2019, the outstanding value of RMLs was MOP230.7 billion, which grew by 0.7% from a month earlier or 8.0% from a year ago. Of which, the resident component made up 93.6% of the total. When compared with the previous month, outstanding RMLs to residents rose by 0.8% whereas those to non-residents dropped by 1.1%.
The outstanding value of CRELs decreased by 0.2% month-to-month or 6.2% from a year earlier to MOP181.6 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.4% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents dropped by 0.2% and 0.6% respectively.
Delinquency ratios
At the end of November 2019, the delinquency ratio for RMLs stood at 0.23%, down by 0.01 percentage point from a month ago but up by 0.07 percentage points over a year earlier. The ratio for CRELs was 0.38%, virtually unchanged from a month ago but up by 0.23 percentage points from end-November 2018.