According to statistics released today by the Monetary Authority of Macao, broad money supply continued to grow in December.  As total deposits increased whereas total loans declined, the overall loan-to-deposit ratio of the banking sector dropped from a month earlier. Concurrently, the non-performing loan ratio, an indicator for bank asset quality, kept virtually stable.

Money supply

Currency in circulation grew 1.0% whereas demand deposits dropped 8.0%. M1 thus decreased 6.2% from one month earlier.  On the other hand, quasi-monetary liabilities rose 3.8%.  The sum of these two items, i.e. M2, increased 2.5% to MOP532.4 billion. On an annual basis, M1 and M2 grew 3.3% and 12.6% respectively.  The shares of Pataca (MOP), Hong Kong Dollar (HKD), Renminbi (RMB) and United States Dollar (USD) in M2 were 30.6%, 54.3%, 4.2% and 8.6% respectively.

Deposits

Resident deposits increased 2.6% from the preceding month to MOP518.9 billion whereas non-resident deposits dropped 6.2% to MOP248.3 billion. In addition, public sector deposits with the banking sector increased 6.2% to MOP174.8 billion.  As a result, total deposits with the banking sector increased 0.7% from a month earlier to MOP942.1 billion. The shares of MOP, HKD, RMB and USD in total deposits were 21.7%, 47.4%, 4.5% and 23.2% respectively.

Loans

Domestic loans to the private sector increased 1.8% from a month ago to MOP422.7 billion. Among which, MOP123.9 billion was MOP-denominated, MOP277.3 billion was denominated in HKD, MOP3.3 billion was denominated in RMB and MOP17.0 billion was denominated in USD, representing 29.3%, 65.6%, 0.8% and 4.0% of the total respectively.  Analysed by economic sector, “gaming” and “electricity, gas and water” increased at respective rates of 1.3% and 0.7% compared with a quarter ago, whereas “information technology”, “manufacturing industries” and “restaurants, hotels and similar” dropped 9.1%, 8.4% and 5.7% respectively.

External loans dropped 2.6% to MOP361.7 billion; of which, loans denominated in MOP, HKD, RMB and USD accounted for 1.9% (MOP6.8 billion), 27.6% (MOP99.8 billion), 10.8% (MOP39.0 billion) and 53.4% (MOP193.1 billion)  respectively.

Operating ratios

At end-December, the loan-to-deposit ratio for the resident sector dropped 1.0 percentage point from the previous month to 60.9%.  The ratio for both the resident and non-resident sectors also dropped 0.8 percentage points to 83.3%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels of 57.4% and 55.6% respectively.  Furthermore, the non-performing loan ratio was 0.2%, virtually unchanged from one month earlier but up slightly by 0.1 percentage point from one year ago.