According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) decreased from the previous month while those of commercial real estate loans (CRELs) rose in September 2017. With regard to the outstanding balance, RMLs and CRELs both witnessed slight monthly increases.
New lending approved
In September 2017, new RMLs approved by Macao banks dropped by 12.3% month-to-month to MOP2.8 billion. Of which, new RMLs to residents, accounting for 97.9% of the total, decreased by 11.6% to MOP2.8 billion. The non-resident component also fell by 36.5% to MOP58.2 million. When compared with the same period of 2016, new approvals of RMLs decreased by 47.5%.
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 8.3% from the preceding month to MOP145.0 million. On an annual basis, new equitable mortgage approved fell by 42.7%.
New CRELs rose by 57.4% month-to-month to MOP4.4 billion; of which, new CRELs to residents, accounting for 99.9% of the total, surged by 60.9% to MOP4.4 billion, mainly driven by new loans granted to enterprises collateralised by commercial buildings. In contrast, new CRELs to non-residents fell by 91.8% from a higher comparison base in the previous month to MOP5.2 million. On an annual basis, new approvals of CRELs decreased by 51.1%.
Outstanding balances
As at end-September 2017, the outstanding value of RMLs was MOP188.3 billion, up slightly by 0.1% from a month earlier or 5.4% from a year ago. The resident component made up 93.5% of the total. When compared with the previous month, outstanding RMLs to residents increased slightly by 0.1% whereas those to non-residents decreased by 0.2%.
The outstanding value of CRELs was MOP173.6 billion, up 0.8% month-to-month or 2.2% year-on-year. Residents accounted for 89.6% of the loans. Compared with a month earlier, outstanding CRELs to residents increased by 1.2% whereas those to non-residents decreased by 2.2%.
Delinquency ratios
At the end of September 2017, the delinquency ratio for RMLs was 0.19%, virtually unchanged from a month ago but up 0.04 percentage points from a year earlier. The ratio for CRELs was 0.14%, unchanged from the preceding month but up 0.03 percentage points from end-September 2016.