HKMC’s Financial Results Highlights for the First Half of 2018

The Hong Kong Mortgage Corporation Limited (HKMC) today (Friday) announced the highlights of its unaudited consolidated financial results for the first six months of 2018 (1H 2018) as follows:

2018 Half-Year Financial Results Highlights

• Unaudited consolidated profit after tax was HK$256 million (1H 2017: HK$578 million)
• Annualised return on shareholders’ equity was 4.1% (1H 2017: 12.6%¹)
• Cost-to-income ratio was 41.8% (1H 2017: 19%¹)
• Capital adequacy ratio was 26.6% as at 30 June 2018 (31 December 2017: 21%)

2018 Half-Year Business Performance Highlights

Asset Purchase

• Purchased HK$5 million loan assets (1H 2017: HK$19 million)
• Outstanding principal balance of the loan portfolio was HK$6.9 billion as at 30 June 2018 (31 December 2017: HK$7.8 billion)

Debt Issuance

• Issued in total HK$10.4 billion corporate debts² (1H 2017: HK$14.3 billion), being a major and active corporate debt issuer in Hong Kong
• Outstanding balance of debt securities was HK$35.9 billion as at 30 June 2018 (31 December 2017: HK$34.8 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$18.9 billion (1H 2017: HK$15.9  billion)
• 90% 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 851 applications under the Special Concessionary Measures (i.e. the 80% guarantee product) with a total loan amount of approximately HK$3.6 billion (91% of the benefitted borrowers since the launch of the 80% guarantee product were small and medium enterprises with less than 50 employees each)

Reverse Mortgage Programme / Premium Loan Insurance Scheme 

• Approved 323 applications under the Reverse Mortgage Programme, with an average property value of HK$5.2 million and an average monthly payout of HK$14,000 

Further details of the HKMC’s unaudited consolidated financial results and financial review for 1H 2018 are set out at the Annex.

The Hong Kong Mortgage Corporation Limited
5 October 2018