Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
515.5995

Press Releases

The Hong Kong Mortgage Corporation Limited Year 2002 Half-Year Financial Results

The Hong Kong Mortgage Corporation (HKMC) announced today (Wednesday) its Year 2002 interim results.

The unaudited interim results show that the operating profit after tax (PAT) for the six months ended 30 June 2002 was HK$115 million, an increase of HK$4.7 million or 4.3% compared with the figure for the corresponding period of last year. Discounting the tax write-back of HK$13.9 million booked in 2001, the PAT for the first half of 2002 is HK$18.6 million or 19.3% higher than that for the corresponding period of last year. The shareholder's equity increased by HK$115 million to HK$3.0 billion.

Total assets increased by 24.6% from HK$23.2 billion to HK$28.9 billion. Despite the difficult market environment, the HKMC purchased HK$4.5 billion of mortgage loans in the first six months and has secured firm offers of around HK$10 billion for settlement in the second half of the year. The aggregate amount of HK$14.5 billion has already exceeded the target of HK$13.5 billion set for the year.

On the funding side, the HKMC raised over HK$9 billion through 19 issues of debt securities in the first half of 2002. This has further consolidated the position of the Corporation as the most active corporate issuer of Hong Kong dollar fixed-rate debts. The HKMC is also the most active issuer of retail bonds with a total issuance amount of HK$3.72 billion in the first six months. As at 30 June 2002, the Corporation had 53 issues of debt securities with a total amount of about HK$25.6 billion outstanding.

The Mortgage Insurance Programme (MIP) maintained steady business volume in the first six months of 2002. Up to the end of June, the Corporation has received 3,392 applications, involving a total mortgage loan amount of HK$6.8 billion. Total insured loan amount is HK$3.6 billion, 9% higher than the forecast in the 2002 business plan. Secondary market transactions account for 67% of the applications received in the period. This shows that the MIP has helped to enhance the liquidity of secondary property market transactions.

Reflecting the prudent purchasing and insurance underwriting criteria adopted by the HKMC, the delinquency ratios of loans overdue for more than 90 days in the retained mortgage portfolio and MIP portfolio were 0.18% and 0.12% respectively at the end of June, substantially lower than the banking industry average of 1.10%.

The Hong Kong Mortgage Corporation Limited
31 July 2002

Annex

 

THE HONG KONG MORTGAGE CORPORATION LIMITED

(Incorporated in Hong Kong with limited liability under the Companies Ordinance)

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2002

The Hong Kong Mortgage Corporation Limited (HKMC) is pleased to announce the unaudited half-year financial results for the six months ended 30 June 2002 as follows:


 

6 months ended

 

 

30 June 2002

 

30 June 2001

 

 

HK$'000

 

HK$'000

 

 

 

 

 

Interest income

 

411,099

 

527,478

 

 

 

 

 

Interest expense

 

(225,681)

 

(370,556)

 

 

 

 

 

Net interest income

 

 

185,418

 

156,922

 

 

 

 

 

Other income, net

 

25,257

 

15,806

 

 

 

 

 

Operating income

 

 

210,675

 

172,728

 

 

 

 

 

Operating expenses

 

(52,483)

 

(48,163)

 

 

 

 

 

Operating profit before provisions

 

158,192

 

124,565

 

 

 

 

 

Provisions for bad and doubtful loans

 

(28,413)

 

(14,109)

 

 

 

 

 

Profit before taxation

 

129,779

 

110,456

 

 

 

 

 

Taxation

 

(14,788)

 

(200)

 

 

 

 

 

Net profit for the period

 

114,991

 

110,256

 

 

 

 

 

Retained profit brought forward

 

840,059

 

589,814

 

 

 

 

 

Transfer to contingency reserve

 

(4,581)

 

(1,905)

 

 

 

 

 

Retained profit carried forward

 

 

950,469

 

698,165

 


 

At

30 June 2002

 

At

31 Dec 2001

 

 

HK$'000

 

HK$'000

 

 

 

 

 

Mortgage portfolio, net

 

20,293,889

 

19,777,884

 

 

 

 

 

Cash and short-term funds

 

6,403,748

 

1,256,740

 

 

 

 

 

Investment in debt securities

 

1,842,660

 

1,736,266

 

 

 

 

 

Total assets

 

28,941,159

 

23,219,832

 

 

 

 

 

Debt securities

 

25,576,650

 

20,058,550

 

 

 

 

 

Shareholder's equity

 

2,961,001

 

 

2,846,010

Capital-to-assets Ratio

 

7.3%

 

11.6%

 

 

 

 

 

 

 

At
30 June 2002

 

At
30 June 2001

 

 

 

 

 

Return on shareholder's equity (annualized)

Return on total assets (annualized)

 

7.9%


0.9%

 

8.3%


1.2%

 

 

 

 

 

Cost-to-income ratio (annualized)

 

24.9%

 

27.9%

 

Financial Review

The unaudited profit after taxation (PAT) was HK$115 million for the six months ended 30 June 2002, an increase of HK$4.7 million or 4.3% over the corresponding period of last year. The increase in PAT mainly reflected an increase of HK$28.5 million in net interest income from an enlarged retained mortgage portfolio, an increase of HK$7.4 million in mortgage insurance premium earned and an increase of HK$3.6 million in fee income derived from the two mortgage-backed securitisation programmes. This had been moderated to some extent by an increase in loan provisions of HK$14.3 million to reflect the increase in the size of the retained mortgage portfolio and an increase in tax provision from HK$0.2 million to HK$14.6 million due to a tax write-back of $13.9 million booked in 2001.

For the purpose of minimizing the adverse impact of the sharp reduction in gross mortgage rates on the net interest spread of the retained mortgage portfolio, the HKMC continued to adopt a proactive approach to capture market opportunities to raise funds at a low cost. During the period, the HKMC issued a total amount of HK$9.3 billion of debts and successfully achieved a low funding cost at around HIBOR.

The Mortgage Insurance Programme (MIP) continued to be well received by the homebuyers. The total outstanding principal balance of the loans with mortgage insurance coverage amounted to HK$18.0 billion and the number of such mortgage loans stood at 9,978 as at 30 June 2002. The net premium earned was HK$17.1 million (1H 2001: HK$9.6 million). The demand for mortgage insurance is expected to further increase following the decision to launch the Home Owner Mortgage Enhancement Programme in July 2002.

The Corporation continues to exercise tight control over its operating expenses. Total operating expenses were HK$52.5 million for the first half of 2002 (1H 2001: HK$48.2 million). The cost-to-income ratio has improved to 24.9% (1H 2001: 27.9%).

Reflecting improved efficiency in the use of capital, the Capital-to-Assets ratio (CAR) of the HKMC was maintained at 7.3% as at 30 June 2002 (2001: 11.6%). This is comfortably above the minimum CAR of 5% stipulated in the guidelines issued by the Financial Secretary.

Last revision date: 1 August 2011
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery