The Hong Kong Mortgage Corporation Limited (HKMC) today (Tuesday) announced the highlights of its audited consolidated financial results for 2018 as follows:
2018 Financial Results Highlights
The decrease in profitability mainly reflected the accounting loss due to the annuity business of HKMC Annuity Limited (HKMCA), a wholly-owned subsidiary of the HKMC operating annuity business, for maintaining prudent statutory reserves based on actuarial assumptions, the non-recurrence in 2018 of a one-off investment disposal gain in 2017, the decrease in exchange gains mainly arising from the revaluation of US dollar exposures in cash and debt investments, and resources utilised for supporting certain policy initiatives. Notwithstanding the accounting loss on HKMCA, which is normal for a new insurance company in its initial years of business due to statutory reserving requirement, the annuity business should be sustainable in the long term. With solid capital position and funding capacity, the HKMC will conduct new and existing businesses prudently in furtherance of its core missions and social objectives.
2018 Business Performance Highlights
Asset Purchase
Debt Issuance
Mortgage Insurance Programme (MIP)
SME Financing Guarantee Scheme
Reverse Mortgage Programme (RMP)
HKMC Annuity Plan (Plan)
Further details of the HKMC’s consolidated financial results and financial review for 2018 are set out at the Annex.
The Hong Kong Mortgage Corporation Limited
30 April 2019
1 For comparison purposes, the adjusted profit after tax, return on shareholders’ equity and cost-to-income ratio for 2018 would be HK$515 million, 5.1% and 36.7% respectively after excluding an accounting loss made by the HKMC Annuity Limited, a wholly-owned subsidiary of the HKMC, for maintaining prudent statutory reserves based on actuarial assumptions for the annuity business.
2 For debts with tenor of one year or above