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 August 2017. With regard to the outstanding balance, RMLs witnessed a slight monthly increase whereas CRELs remained virtually unchanged.
New lending approved
In August 2017, new RMLs approved by Macao banks fell by 44.5% month-to-month to MOP3.2 billion. Of which, new RMLs to residents, accounting for 97.1% of the total, decreased by 18.5% to MOP3.1 billion. The non-resident component also shrank by 95.3% from a higher comparison base in the previous month to MOP91.7 million. When compared with the same period of 2016, new approvals of RMLs decreased by 13.6%.
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased by 19.6% from the preceding month to MOP133.9 million. The equitable mortgage extended to residents, which accounted for 97.8% of the total, declined by 18.7% from the previous month. On an annual basis, new equitable mortgage approved also fell by 54.9%.
New CRELs decreased by 74.3% month-to-month to MOP2.8 billion; of which, new CRELs to residents, accounting for 97.8% of the total, fell by 74.8% from a higher comparison base in the previous month to MOP2.7 billion. In contrast, new CRELs to non-residents rose by 85.2% from the previous month to MOP62.8 million. On an annual basis, new approvals of CRELs dropped by 62.3%.
Outstanding balances
As at end-August 2017, the outstanding value of RMLs was MOP188.1 billion, up slightly by 0.1% from a month earlier or 5.7% from a year ago. The resident component made up 93.5% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents both slightly increased by 0.1%.
The outstanding value of CRELs was MOP172.2 billion, virtually unchanged from a month ago but up 1.3% year-on-year. Residents accounted for 89.2% of the loans. Compared with a month earlier, outstanding CRELs to residents decreased slightly by 0.2% whereas those to non-residents increased by 1.2%.
Delinquency ratios
At the end of August 2017, the delinquency ratio for RMLs was 0.19%, up 0.02 percentage points from a month ago or 0.04 percentage points over a year earlier. The ratio for CRELs was 0.14%, virtually unchanged from the preceding month but up 0.04 percentage points from end-August 2016.