HKMC Annual Report 2011

The Hong Kong Mortgage Corporation Limited (HKMC) today (Thursday) published its Annual Report for 2011.  The Report reviews the business performance, corporate governance and initiatives on corporate social responsibility of the HKMC in 2011.

The Report highlights the major achievements of the HKMC in 2011, including:

(a)        purchase of a total of HK$9.7 billion loan assets;

(b)        drawdown of mortgage loans of HK$26.3 billion in total under the Mortgage Insurance Programme, achieving a usage rate (in terms of the total drawdown amount against total market mortgage drawdown) of 11.5%;

(c)        launch of the SME Financing Guarantee Scheme on 1 January 2011 to assist local small and medium-sized enterprises in obtaining sustainable bank financing;

(d)       launch of the Reverse Mortgage Programme on 11 July 2011 to provide the elderly with an additional financing option;

(e)        submission of the Microfinance Study Group Report to the Financial Secretary in August 2011 on a feasibility study of the introduction of microfinance in Hong Kong;

(f)        issued debt securities of HK$28.5 billion in a cost-effective manner, maintaining the HKMC’s position as the most active corporate issuer in the Hong Kong dollar debt market for 11 consecutive years;

(g)        safeguarding excellent credit quality, with a 90-day delinquency ratio as at 31 December 2011 of zero for the mortgage insurance portfolio, 0.02% for the Hong Kong residential mortgage portfolio, 0.67% for the SME guarantee portfolio and 0.01% across all asset classes; and

(h)        maintaining the HKMC’s long-term foreign and local currency ratings of AAA and Aa1 by Standard & Poor’s and Moody’s Investors Service, Inc. respectively.

The HKMC achieved a record profit after tax of HK$1,256 million in 2011, with a return on shareholder’s equity of 15.5% and cost-to-income ratio of 11.8%.  The HKMC’s capital adequacy ratio was 19.7%, well above the minimum requirement of 8% stipulated by the Financial Secretary.  Having regard to the financial performance of the HKMC in 2011, the HKMC declared a final dividend of HK$350 million or HK$0.175 per share, representing 27.9% of the profit after tax.

The Report is now available free of charge on the HKMC website (www.hkmc.com.hk).

The Hong Kong Mortgage Corporation Limited
31 May 2012