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 December 2019. With regard to the outstanding balances, RMLs increased whereas CRELs witnessed a decline.
New lending approved
In December 2019, new RMLs approved by Macao banks dropped by 11.8% month-to-month to MOP3.0 billion. Of which, new RMLs to residents, representing 96.6% of the total, fell by 14.1% to MOP2.9 billion. On the other hand, the non-resident component rose by 244.2% from the relatively low base last month to MOP101.5 million. The monthly average of new RMLs approved between October and December 2019 was MOP3.3 billion, down by 6.6% from the previous period (September to November 2019).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) grew by 39.5% month-to-month to MOP478.8 million. On an annual basis, new equitable mortgage approved fell by 60.0%.
New CRELs rose by 3.4% month-to-month to MOP2.4 billion. Within this total, new CRELs to residents, which occupied 99.8% of the total, increased by 4.2% to MOP2.4 billion whereas those to non-residents decreased by 81.8% to MOP4.1 million. The monthly average of new CRELs approved between October and December 2019 was MOP3.7 billion, down by 3.9% as compared with the previous period (September to November 2019).
Outstanding balances
As at end-December 2019, the outstanding value of RMLs was MOP230.9 billion, which grew by 0.1% from a month earlier or 6.9% from a year ago. Of which, the resident component made up 93.7% of the total. When compared with the previous month, outstanding RMLs to residents rose by 0.2% whereas those to non-residents dropped by 1.5%.
The outstanding value of CRELs decreased by 1.8% month-to-month or 9.8% from a year earlier to MOP178.5 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 1.9% and 0.5% respectively.
Delinquency ratios
At the end of December 2019, the delinquency ratio for RMLs stood at 0.23%, virtually unchanged from a month ago but up by 0.07 percentage points over a year earlier. The ratio for CRELs remained at 0.38% but up by 0.23 percentage points from end-December 2018.