According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) declined in October 2015. With regard to outstanding balance, RMLs and CRELs both witnessed increases.
New lending approved
In October 2015, new RMLs approved by Macao banks decreased 31.8% month-to-month to MOP2.5 billion; of which, 98.5% was extended to residents. In terms of value, new RMLs to residents and non-residents decreased 30.5% and 68.3% respectively. When compared with the same period of 2014, new approvals of RMLs fell by 46.8%.
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) dropped by 69.3% month-to-month to MOP0.3 billion. The equitable mortgage extended to residents, which accounted for 95.4% of the total, fell 68.0%. When compared with the same period of 2014, new RMLs collateralised by uncompleted units decreased by 62.1%.
New CRELs decreased by 3.5% month-to-month to MOP10.1 billion; of which, 95.1% was granted to residents. In terms of value, new CRELs to residents decreased 7.9% while those to non-residents rose 855.7%. On an annual basis, new approvals of CRELs rose by 162.8%.
Outstanding balances
As at end-October 2015, the outstanding value of RMLs reached MOP170.3 billion, an increase of 0.1% from one month earlier or 14.1% from a year ago. The resident component made up 94.1% of the total. Compared to end-September 2015, outstanding RMLs to residents rose 0.1% while those to non-residents dropped 0.3%.
Concurrently, the outstanding value of CRELs increased 3.9% from end-September 2015 and was up 36.4% from end-October 2014 to MOP159.9 billion. Residents accounted for 88.6% of the loans. Compared with one month earlier, outstanding CRELs to residents and non-residents grew 4.1% and 2.7% respectively.
Delinquency ratios
At the end of October 2015, the delinquency ratio for RMLs remained virtually unchanged from a month ago or up 0.02 percentage points from a year ago, at 0.08%. The ratio for CRELs was also unchanged from a month ago or down 0.06 percentage points from end-October 2014, at 0.01%.
