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 April 2014. With regard to outstanding balance, RMLs and CRELs both witnessed increases.

New Lending Approved

In April 2014, new RMLs approved by Macao banks dropped 0.3% month-to-month to MOP3.5 billion; of which, 97.1% was extended to residents. In terms of value, new RML to residents decreased 1.4% whereas those to non-residents increased 52.2%. When compared with the same period of 2013, new approvals of RMLs witnessed increase of 7.5%.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 218.3% month-to-month to MOP368.7 million. The equitable mortgage extended to residents, which accounted for 98.0% of the total, increased 211.9%. When compared with the same period of 2013, new RMLs collateralised by uncompleted units expanded 180.5%.

New CRELs dropped by 26.0% month-to-month to MOP7.0 billion; of which, 98.2% was granted to residents. In terms of value, new CRELs to residents increased 0.4% whereas those to non-residents decreased 95.1%. On an annual basis, new approvals of CRELs grew by 246.8%.

Outstanding Balances

As at end-April 2014, the outstanding value of RMLs reached MOP126.9 billion, an increase of 1.5% from one month earlier or 24.1% from a year ago. The resident component made up 95.2% of the total. Compared to end-March 2014, outstanding RMLs to residents and non-residents grew 1.3% and 4.6% respectively.

Concurrently, the outstanding value of CRELs increased 4.4% from end-March 2014 and was up 32.6% from end-April 2013 to MOP99.8 billion. Residents accounted for 91.8% of the loans. Compared with one month earlier, outstanding CRELs to residents grew 4.8% whereas those to non-residents slid 0.7%.

Delinquency Ratios

At the end of April 2014, the delinquency ratio for RMLs remained unchanged at 0.07% or increased by 0.02 percentage points from a year ago. The ratio for CRELs increased to 0.07%, up 0.03 percentage points from a month ago or down 0.02 percentage points from end-April 2013.