HKMC’s Financial Results Highlights for the First Half of 2014

The Hong Kong Mortgage Corporation Limited (HKMC) today (Monday) announced the highlights of its unaudited financial results for the first six months of 2014 (“1H 2014”). 

2014 Half-Year Financial Results Hightlights

• Unaudited consolidated profit after tax was HK$374 million (1H 2013: HK$508 million) 
• Annualised return on shareholders’ equity was 8.3% (1H 2013: 10.7%) 
• Cost-to-income ratio was 22.9% (1H 2013:  16%) 
• Capital adequacy ratio was 23.1% as at 30 June 2014
  (31 December 2013:  21%) 

2014 Half-Year Business Performance Highlights 

Asset Purchase  

• Purchased HK$74 million loan assets (1H 2013: HK$82 million) 
• Outstanding principal balance of the loan portfolio was HK$17.9 billion as at 30 June 2014 (31 December 2013:  HK$22.3 billion)  

Debt Issuance  

• Issued HK$8.5 billion corporate debts¹ (1H 2013: HK$5.5 billion), being one of the most active issuers in Hong Kong 
• Outstanding balance of debt securities issued was HK$37.4 billion as at 30 June 2014 (31 December 2013: HK$31.4 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$6.2 billion (1H 2013: HK$7  billion) 
• MIP usage rate was 7.1 % (the amount of MIP loans drawn down as a percentage of the total new mortgage loans drawn down in the local market) (1H 2013: 7.9%)
•  85% of the MIP loans drawn down (in terms of the loan amount) were secured on properties in the secondary market 

SME Financing Guarantee Scheme (SFGS) 

• Approved more than 1,000 applications for the 80% guarantee products under the Special Concessionary Measures with a total loan amount of approximately HK$4.2 billion in 1H 2014 

Reverse Mortgage Programme 

• Approved 101 applications, with an average property value of about HK$5.4 million and average monthly payout of HK$15,200 

Microfinance Scheme

• Approved 26 loans with a total loan amount of HK$6 million  

Further details of the HKMC’s consolidated financial results and financial review for 1H 2014 are set out at Annex. 

The Hong Kong Mortgage Corporation Limited
15 September 2014