HKMC’s Financial Results Highlights for the First Half of 2017

The Hong Kong Mortgage Corporation Limited (HKMC) today (Monday) announced the highlights of its unaudited financial results for the first six months of 2017 (“1H 2017”) as follows:

2017 Half-Year Financial Results Highlights

• Unaudited consolidated profit after tax was HK$578 million (1H 2016: HK$296 million)
• Annualised return on shareholders’ equity was 12.6% (1H 2016: 6.6%)
• Cost-to-income ratio was 19% (1H 2016: 29.3%)
• Capital adequacy ratio was 20.7% as at 30 June 2017 (31 December 2016: 21.3%)

2017 Half-Year Business Performance Highlights

Asset Purchase

• Purchased HK$19 million loan assets (1H 2016: HK$19 million)
• Outstanding principal balance of the loan portfolio was HK$8.5 billion as at 30 June 2017 (31 December 2016: HK$9.5 billion)

Debt Issuance

• Issued in total HK$14.3 billion corporate debts¹ (1H 2016: HK$15.4 billion), being a major and active corporate debt issuer in Hong Kong
• Outstanding balance of debt securities was HK$33.3 billion as at 30 June 2017 (31 December 2016: HK$34.2 billion)
• Credit ratings of AA+ from S&P Global Ratings and Aa2 from  Moody’s, same as those of the HKSAR Government

Mortgage Insurance Programme (MIP)

• New mortgage loans drawn down amounted to HK$15.9 billion (1H 2016: HK$7.8  billion)
• 87% 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 577 applications under the Special Concessionary Measures (i.e. the 80% guarantee product) with a total loan amount of approximately HK$2.2 billion (91% of the benefitted borrowers since launch of the 80% guarantee product were small enterprises with less than 50 employees)

Reverse Mortgage Programme / Premium Loan Insurance Scheme 

• Approved 344 applications under the Reverse Mortgage Programme, with an average property value of HK$5 million and average monthly payout of HK$15,200
• No application was approved under the Premium Loan Insurance Scheme

Microfinance Scheme

• Approved 9 applications with a total loan amount of HK$2.08 million

Further details of the HKMC’s unaudited consolidated financial results and financial review for 1H 2017 are set out at Annex.

The Hong Kong Mortgage Corporation Limited
9 October 2017