HKMC’s Financial Results Highlights for 2016

The Hong Kong Mortgage Corporation Limited (HKMC) today (Monday) announced the highlights of its audited financial results for 2016 as follows:

2016 Financial Results Highlights

• Consolidated profit after tax was HK$604 million (2015: HK$725 million)
• Return on shareholders’ equity was 6.8% (2015: 8.1%)
• Cost-to-income ratio was 30.8% (2015: 25.7%)
• Capital adequacy ratio was 21.3% as at 31 December 2016 (31 December 2015: 21.9%)
• No dividend was declared (2015: HK$725 million)


2016 Business Performance Highlights

Asset Purchase

• Purchased HK$206 million loan assets (2015: HK$337 million)
• Outstanding principal balance of the loan portfolio was HK$9.5 billion at the end of 2016 (2015: HK$11.5 billion)

Debt Issuance

• Issued in total HK$16.2 billion corporate debts¹  (2015: HK$14 billion), being a major and active corporate debt issuer in Hong Kong
• Outstanding balance of debt securities was HK$34.2 billion at the end of 2016 (2015: HK$33.5 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$24.6 billion (2015: HK$17.2  billion)
• 79% 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 750 applications under the Special Concessionary Measures (i.e. 80% guarantee products) with a total loan amount of approximately HK$2.4 billion in 2016 (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 429 applications under the Reverse Mortgage Programme, with an average property value of HK$5.1 million and average monthly payout of HK$15,300
• Approved 8 applications under the Premium Loan Insurance Scheme, with an average property value of HK$3.6 million and average lump-sum payout of HK$0.72 million

Microfinance Scheme

• Approved 19 applications with a total loan amount of HK$4.6 million

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

The Hong Kong Mortgage Corporation Limited
10 April 2017