HKMC’s Financial Results Highlights for the First Half of 2015

The Hong Kong Mortgage Corporation Limited (HKMC) today (Thursday) announced the highlights of its unaudited financial results for the first six months of 2015 (“1H 2015”).

2015 Half-Year Financial Results Highlights

• Unaudited consolidated profit after tax was HK$338 million (1H 2014: HK$374 million)
• Annualised return on shareholders’ equity was 7.6% (1H 2014: 8.3%)
• Cost-to-income ratio was 25.4% (1H 2014: 22.9%)
• Capital adequacy ratio was 22.6% as at 30 June 2015 (31 December 2014: 23.5%)

2015 Half-Year Business Performance Highlights

Asset Purchase

• Purchased HK$71 million loan assets (1H 2014: HK$74 million)
• Outstanding principal balance of the loan portfolio was HK$12.5 billion  as at 30 June 2015 (31 December 2014: HK$15.6 billion)

Debt Issuance

• Issued HK$12.1 billion corporate debts¹(1H 2014: HK$8.5 billion), being one of the most active issuers in Hong Kong
• Outstanding balance of debt securities was HK$36.2 billion as at 30 June 2015 (31 December 2014: HK$33.3 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$8.2 billion (1H 2014: HK$6.2  billion)
• 85% 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 580 applications for the 80% guarantee products under the Special Concessionary Measures with a total loan amount of approximately HK$2.0 billion  

Reverse Mortgage Programme

• Approved 147 applications, with an average property value of about HK$5.3 million and average monthly payout of HK$15,200

Microfinance Scheme

• Approved 11 applications with a total loan amount of HK$2.13 million

Further details of the HKMC’s consolidated financial results and financial review for 1H 2015 are set out at Annex.

The Hong Kong Mortgage Corporation Limited
29 October 2015