HKMC’s Financial Results Highlights for the First Half of 2016

Press Releases

19 Sep 2016

HKMC’s Financial Results Highlights for the First Half of 2016

The Hong Kong Mortgage Corporation Limited (HKMC) today (Monday) announced the highlights of its unaudited financial results for the first six months of 2016 (“1H 2016”) as follows:

2016 Half-Year Financial Results Highlights

  • Unaudited consolidated profit after tax was HK$296 million (1H 2015: HK$338 million)
  • Annualised return on shareholders’ equity was 6.6% (1H 2015: 7.6%)
  • Cost-to-income ratio was 29.3% (1H 2015: 25.4%)
  • Capital adequacy ratio was 20.2% as at 30 June 2016 (31 December 2015: 21.9%)

 

2016 Half-Year Business Performance Highlights

Asset Purchase

  • Purchased HK$19 million loan assets (1H 2015: HK$71 million)
  • Outstanding principal balance of the loan portfolio was HK$10.5 billion as at 30 June 2016 (31 December 2015: HK$11.5 billion)

 

Debt Issuance

  • Issued in total HK$15.4 billion corporate debts1 (1H 2015: HK$12.1 billion), being a major and active corporate debt issuer in Hong Kong
  • Outstanding balance of debt securities was HK$40 billion as at 30 June 2016 (31 December 2015: HK$33.5 billion)
  • Credit ratings of AAA from Standard & Poor’s and Aa1 from  Moody’s, same as those of the HKSAR Government

 

Mortgage Insurance Programme (MIP)

  • New mortgage loans drawn down amounted to HK$7.8 billion (1H 2015: HK$8.2  billion)
  • 78% of loans drawn down  (in terms of 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  

  • Approved 346 applications under the Special Concessionary Measures (i.e. the 80% guarantee product) with a total loan amount of approximately HK$1.2 billion (91% of the benefitted borrowers since launch of the 80% guarantee product were small enterprises with less than 50 employees)

 

Reverse Mortgage Programme

  • Approved 168 applications, with an average property value of HK$6 million and average monthly payout of HK$17,600

 

Microfinance Scheme

  • Approved 7 applications with a total loan amount of HK$1.69 million

 

Premium Loan Insurance Scheme

  • Approved 5 applications, with an average property value of HK$4.1 million and average lump-sum payout of HK$0.53 million

 

Further details of the HKMC’s unaudited consolidated financial results and financial review for 1H 2016 are set out at Annex.

 

The Hong Kong Mortgage Corporation Limited
19 September 2016


1 Debts with tenor of one year or above.

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Last revision date : 19 September 2016