HKMC’s Financial Results Highlights for 2015

The Hong Kong Mortgage Corporation Limited (HKMC) today (Monday) announced the highlights of its audited financial results for 2015 as follows:

2015 Financial Results Highlights

• Consolidated profit after tax was HK$725 million (2014:
  HK$746 million)
• Return on shareholders’ equity was 8.1% (2014: 8.4%)
• Cost-to-income ratio was 25.7% (2014: 24.3%)
• Capital adequacy ratio was 21.9% as at 31 December 2015 (31 December 2014: 23.5%)
• Dividend was HK$725 million (2014: HK$350 million)


2015 Business Performance Highlights

Asset Purchase

• Purchased HK$337 million loan assets (2014: HK$245 million)
• Outstanding principal balance of the loan portfolio was HK$11.5 billion at the end of 2015 (2014: HK$15.6 billion)

Debt Issuance

• Issued in total HK$14 billion corporate debts¹  (2014: HK$13.9 billion), being one of the most active issuers in Hong Kong.  The HKMC issued 30-year bonds totalling HK$1 billion for the first time to support potential new fixed-rate businesses
• Outstanding balance of debt securities was HK$33.5 billion at the end of 2015 (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 amounted to HK$17.2 billion (2014: HK$16  billion)
• 88% of the 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 

• Approved about 1,000 applications under the Special Concessionary Measures (i.e. 80% guarantee products) with a total loan amount of approximately HK$3.4 billion in 2015, of which 92% of the benefitted borrowers were small enterprises with less than 50 employees

Reverse Mortgage Programme

• Approved 363 applications, with an average property value of HK$5.7 million and average monthly payout of HK$16,200

Microfinance Scheme

• Approved 21 applications with a total loan amount of HK$4.53 million

Premium Loan Insurance Scheme

• Launched in mid-September and there were 3 applications approved up to end of the year, with an average property value of HK$4.75 million and average lump-sum payout of HK$1.2 million

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

The Hong Kong Mortgage Corporation Limited
25 April 2016