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 month-on-month in June 2023. With regard to the outstanding balances, RMLs dropped whereas CRELs witnessed an increase when compared with the previous month.
New lending approved
In June 2023, new RMLs approved by Macao banks fell by 36.1% month-on-month to MOP1.68 billion. Of which, new RMLs to residents, representing 99.0% of the total, decreased by 36.2% to MOP1.66 billion; the non-resident component dropped to MOP16.52 million. The monthly average of new RMLs approved between April and June 2023 was MOP1.95 billion, down 3.8% from the previous period (March to May 2023).
New CRELs decreased by 52.8% month-on-month to MOP1.78 billion. Within this total, new CRELs to residents, which occupied 98.0% of the total, fell by 49.0% to MOP1.74 billion; new CRELs to non-residents dropped to MOP35.75 million. The monthly average of new CRELs approved between April and June 2023 was MOP2.64 billion, down 8.6% when compared with the previous period (March to May 2023).
Outstanding balances
As at end-June 2023, the outstanding value of RMLs decreased by 0.1% month-on-month or 2.8% year-on-year to MOP233.6 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 95.2% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents fell by 0.1% and 0.7% respectively.
The outstanding value of CRELs was MOP162.1 billion, which rose by 0.3% from the preceding month or 2.1% from a year ago. Of which, the resident component made up 93.5% of the total. When compared with the previous month, outstanding CRELs to residents increased by 0.3% whereas those to non-residents fell by 0.1%.
Delinquency ratios
At the end of June 2023, the delinquency ratio for RMLs stood at 0.7%, unchanged from a month ago but up 0.3 percentage points over a year earlier. The ratio for CRELs was 1.8%, up by 0.3 percentage points from a month ago or 1.1 percentage points from end-June 2022.
Residential mortgage loans refer to credit facilities provided by banks to individuals and enterprises that are collateralised by residential real estate in Macao. They include loans to finance purchase of residential properties and other purposes (such as refinancing loans, working capital and trade financing). Commercial real estate loans refer to credit facilities provided by banks to individuals and enterprises that are collateralised by commercial real estate in Macao. They include loans to construction companies and loans to finance property development and investment.