HKMC’s Financial Results Highlights for 2014

The Hong Kong Mortgage Corporation Limited (HKMC) today (Tuesday) announced the highlights of its audited financial results for 2014 as follows: 

2014 Financial Results Highlights 

• Consolidated profit after tax was HK$746 million (2013:
  HK$983 million)
• Return on shareholders’ equity was 8.4% (2013: 10.4%)
• Cost-to-income ratio was 24.3% (2013: 18.1%)
• Capital adequacy ratio was 23.5% as at 31 December 2014 (31 December 2013: 21%)
• Dividend of HK$350 million (2013: HK$1.5 billion, including an ordinary dividend of HK$500 million and a special dividend of HK$1 billion)

2014 Business Performance Highlights 

Asset Purchase  

• Purchased HK$245 million loan assets (2013: HK$3.2 billion) 
• Outstanding principal balance of the loan portfolio was HK$15.6 billion  at the end of 2014 (2013: HK$22.3 billion)

Debt Issuance  

• Issued HK$13.9 billion corporate debts¹ (2013: HK$10.2 billion), being one of the most active issuers in Hong Kong 
• Outstanding balance of debt securities was HK$33.3 billion at the end of 2014 (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$16 billion (2013: HK$13.3  billion) 
• 89% 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 1,600 applications for the 80% guarantee products under the Special Concessionary Measures with a total loan amount of approximately HK$5.8 billion in 2014 

Reverse Mortgage Programme  

• Approved 200 applications, with an average property value of about HK$5.3 million and average monthly payout of HK$14,700

Microfinance Scheme 

• Approved 37 applications with a total loan amount of HK$8.57 million

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

Appointment of Board of Directors 

The HKMC held its 18th Annual General Meeting today.  Eleven Directors have been reappointed by the Financial Secretary for another term, namely, Professor K C Chan, Professor Anthony Cheung, Ms Starry Lee, Mr Abraham Shek, Mr Andrew Leung, Mr Ng Leung-sing, Miss Tanya Chan, Mr Lester Huang, Mr Lee Huat-oon, Professor Wong Yuk-shan and Mr Brian Stevenson.  The Financial Secretary appointed Ms Miranda Kwok, Mr Lawrence Lam and Mr George Leung as new Directors.  Mr Chan Kin-por, Mr Andrew Fung and Mr Jason Yeung have retired as Directors and have not offered themselves for reappointment.  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 reappointment.  Hence, the term of office of these Directors will run until the next Annual General Meeting to be held around April 2016. 

The Hong Kong Mortgage Corporation Limited
21 April 2015