HKMC’s Financial Results Highlights for 2013

The Hong Kong Mortgage Corporation Limited (HKMC) today (Monday) announced the highlights of its audited financial results for 2013 as follows:

2013 Financial Results Highlights

• Consolidated profit after tax was HK$983 million (2012: HK$1,126 million)
• Return on shareholders’ equity was 10.4% (2012: 12.4%)
• Cost-to-income ratio was 18.1% (2012: 15.4%)
• Capital adequacy ratio was 21% as at 31 December 2013 (31 December 2012: 20.2%)
• Dividend of HK$1.5 billion  (2012: HK$750 million) including an ordinary dividend of HK$500 million and a special dividend of  HK$1 billion

2013 Business Performance Highlights

Asset Purchase

• Purchased HK$3.2 billion loan assets (2012: HK$0.9 billion)
• Outstanding principal balance of the loan portfolio was HK$22.3 billion  at the end of 2013 (2012: HK$25.9 billion)

Debt Issuance

• Issued HK$10.2 billion corporate debts¹ (2012: HK$11 billion), being one of the most active issuers in Hong Kong
• Outstanding balance of debt securities was HK$31.4 billion at end of 2013 (2012: HK$36.4 billion)
• Credit ratings of AAA from Standard & Poor’s and Aa1 from  Moody’s, same as the ratings of the HKSAR Government

Mortgage Insurance Programme (MIP)

• New mortgage loans drawn down under the MIP amounted to HK$13.3 billion (2012: HK$22  billion)
• MIP usage rate was 8.4% (the amount of MIP loans drawn down as a percentage of the total new mortgage loans drawn down in the local market) (2012: 11.5%)
• 87% of the MIP loans drawn down  (in terms of the loan amount) were secured on properties in the secondary market, demonstrating the importance of the MIP to homebuyers in the secondary market

SME Financing Guarantee Scheme (SFGS)

• Approved more than 2,900 applications for the 80% guarantee products under the Special Concessionary Measures with a total loan amount of approximately HK$11.2 billion in 2013, benefiting over 5,500 business enterprises and over 140,000 related employees since the launch of the products in May 2012

Reverse Mortgage Programme

• Approved 217 applications, with an average property value of about HK$5.6 million and average monthly payout of HK$14,800

Microfinance Scheme

• Approved 59 loans with a total loan amount of HK$15.35 million

Further details of the HKMC’s consolidated financial results and financial review for 2013 are set out at Annex A.

Appointment of Board of Directors

The HKMC held its 17th Annual General Meeting today.  Eleventh Directors have been re-appointed by the Financial Secretary for another term, namely, Professor K C Chan, Professor Anthony Cheung, Ms Starry Lee, Mr Abraham Shek, Mr Chan Kin-por, Mr Andrew Leung, Miss Tanya Chan, Mr Lester Huang, Mr Andrew Fung, Mr Lee Huat-oon and Professor Wong Yuk-shan.  The Financial Secretary appointed Mr Ng Leung-sing, Mr Brian Stevenson and Mr Jason Yeung as new Directors.  Dr David Li, Mr Eddy Fong and Mr Jammy Chen have retired as Directors and have not offered themselves for re-appointment.  The composition of the new Board of Directors is at Annex B.

According to the Articles of Association of the HKMC, at each Annual General Meeting all those Directors who are not Executive Directors shall retire but shall be eligible for re-appointment.  Hence, the term of office of these Directors will run until the next Annual General Meeting to be held around April 2015.

The Hong Kong Mortgage Corporation Limited
7 April 2014

¹ For debts with tenor of one year or above.