According to statistics released today (11 April) 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 February 2024. With regard to the outstanding balances, RMLs dropped whereas CRELs witnessed an increase on a monthly basis.
New lending approved
In February 2024, new RMLs approved by Macao banks fell by 42.5% month-on-month to MOP686.29 million. Of which, new RMLs to residents, representing 97.0% of the total, decreased by 43.0% to MOP665.97 million; the non-resident component dropped by 23.6% to MOP20.33 million. The monthly average of new RMLs approved between December 2023 and February 2024 was MOP936.26 million, down 9.4% from the previous period (November 2023 to January 2024).
New CRELs decreased by 33.4% month-on-month to MOP946.14 million. Within this total, new CRELs to residents, which occupied 99.3% of the total, fell by 31.4% to MOP939.96 million; new CRELs to non-residents dropped to MOP6.18 million. The monthly average of new CRELs approved between December 2023 and February 2024 was MOP1.08 billion, up 1.6% when compared with the previous period (November 2023 to January 2024).
Outstanding balances
As at end-February 2024, the outstanding value of RMLs fell by 0.3% month-on-month or 3.8% year-on-year to MOP227.77 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 95.5% of the total. When compared with the previous month, outstanding RMLs to residents dropped by 0.4% whereas those to non-residents increased by 0.6%.
The outstanding value of CRELs was MOP158.18 billion, which rose by 0.5% from the previous month but dropped by 2.2% from a year ago. Of which, the resident component accounted for 93.4% of the total. When compared with the previous month, outstanding CRELs to residents increased by 0.6% whereas those to non-residents fell by 0.3%.
Delinquency ratios
At the end of February 2024, the delinquency ratio for RMLs stood at 1.1%, which kept unchanged from a month ago but up 0.6 percentage points over a year earlier. The ratio for CRELs remained at 3.4% from the previous month, but up 2.4 percentage points from end-February 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.