According to statistics released today by the Monetary Authority of Macao, on an annual basis, new approvals of mortgage lending continued to increase notably in the second quarter. On outstanding balance, residential mortgage loans (RMLs) rose at a faster pace than commercial real estate loans (CRELs).

New Lending Approved

For the second quarter of 2010, new RMLs approved by Macao banks increased by 21.7% quarter-to-quarter to MOP8.5 billion; of which, 92.7% was extended to residents. In terms of approved value, new RMLs to residents and to non-residents rose 21.3% and 26.5% respectively. When compared with the same period last year, new approvals of RMLs increased markedly by 115.2%.

After falling 16.0% in the previous quarter, new CRELs approved increased by 55.3% quarter-to-quarter to MOP8.3 billion; of which, 85.9% was granted to residents. In terms of approved value, new CRELs to residents and to non-residents rose by 40.4% and 337.2% respectively. On an annual basis, new approvals of CRELs surged by 231.4%.

Outstanding Balances

As at end-June 2010, the outstanding value of RMLs reached MOP54.2 billion, an increase of 11.9% from three months earlier or 47.3% from a year ago. The resident component made up 88.9% of the total. Outstanding RMLs to residents and to non-residents grew by 13.5% and 0.3% respectively during the second quarter of 2010.

Concurrently, the outstanding value of CRELs rose 3.6% from end-March 2010 or 14.6% from end-June 2009 to MOP40.7 billion. Residents accounted for 86.2% of the loans. Outstanding CRELs to residents rose 5.5% whereas those to non-residents fell 6.9% in the second quarter of 2010.

Delinquency Ratios

At the end of June 2010, the delinquency ratio for RMLs stood at 0.13%, down 0.02 percentage points from three months earlier or 0.10 percentage points from a year ago. The ratio for CRELs went up 0.05 percentage points from end-March 2010 but down 0.12 percentage points from end-June 2009, to 0.39%.