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 the third quarter. On outstanding balance, increases were observed in both RMLs and CRELs.

New Lending Approved

For the third quarter of 2010, new RMLs approved by Macao banks decreased by 22.3% quarter-to-quarter to MOP6.6 billion; of which, 92.8% was extended to residents. In terms of approved value, new RMLs to residents and to non-residents dropped 22.2% and 23.5% respectively. When compared with the same period last year, new approvals of RMLs increased by 5.8%.

After rising notably in the previous quarter, new CRELs approved decreased by 12.4% quarter-to-quarter to MOP10.1 billion in the third quarter of 2010; of which, 98.3% was granted to residents. In terms of approved value, new CRELs to residents and to non-residents dropped by 4.1% and 85.7% respectively. On an annual basis, new approvals of CRELs surged by 198.4%.

Outstanding Balances

As at end-September 2010, the outstanding value of RMLs reached MOP55.1 billion, an increase of 1.8% from three months earlier or 35.3% from a year ago. The resident component made up 89.0% of the total. Outstanding RMLs to residents grew by 3.0% whereas outstanding RMLs to non-residents went down by 6.9% during the third quarter of 2010.

Concurrently, the outstanding value of CRELs rose 8.5% from end-June 2010 or 20.8% from end-September 2009 to MOP44.1 billion. Residents accounted for 89.2% of the loans. Outstanding CRELs to residents rose 12.3% whereas those to non-residents fell 15.0% in the third quarter of 2010.

Delinquency Ratios

At the end of September 2010, the delinquency ratio for RMLs stood at 0.11%, down 0.02 percentage points from three months earlier or 0.13 percentage points from a year ago. The ratio for CRELs went down 0.19 percentage points from end-June 2010 or 0.13 percentage points from end-September 2009, to 0.19%.