According to statistics released today (12 March) by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both increased month-on-month in January 2024. With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.
New lending approved
In January 2024, new RMLs approved by Macao banks rose by 28.6% month-on-month to MOP1.19 billion. Of which, new RMLs to residents, representing 97.8% of the total, grew by 27.4% to MOP1.17 billion; the non-resident component increased to MOP26.60 million. The monthly average of new RMLs approved between November 2023 and January 2024 was MOP1.03 billion, up 11.1% from the previous period (October to December 2023).
New CRELs increased by 63.6% month-on-month to MOP1.42 billion. Within this total, new CRELs to residents, which occupied 96.5% of the total, rose by 63.0% to MOP1.37 billion; new CRELs to non-residents grew by 82.8% to MOP50.26 million. The monthly average of new CRELs approved between November 2023 and January 2024 was MOP1.06 billion, up 9.4% when compared with the previous period (October to December 2023).
Outstanding balances
As at end-January 2024, the outstanding value of RMLs was 228.54 billion, which fell by 0.3% from the preceding month or 3.9% from a year ago. Of which, the resident component made up 95.5% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents dropped by 0.3% and 0.4% respectively.
The outstanding value of CRELs fell by 0.8% month-on-month or 2.6% year-on-year to MOP157.32 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 93.4% of the total. When compared with the previous month, outstanding CRELs to residents and non-residents fell by 0.8% and 1.7% respectively.
Delinquency ratios
At the end of January 2024, the delinquency ratio for RMLs stood at 1.1%, which went up by 0.1 percentage point from a month ago or 0.6 percentage points over a year earlier. The ratio for CRELs was 3.4%, up 0.3 percentage points from a month ago or 2.4 percentage points from end-January 2023.
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.