According to statistics released today by the Monetary Authority of Macao, new approvals of both residential mortgage loans (RMLs) and commercial real estate loans (CRELs) increased in June 2015. With regard to outstanding balance, RMLs and CRELs also witnessed increases.

New lending approved

In June 2015, new RMLs approved by Macao banks increased 5.7% month-to-month to MOP3.9 billion; of which, 96.8% was extended to residents. In terms of value, new RMLs to residents increased 6.2% whereas those to non-residents decreased 8.2%. When compared with the same period of 2014, new approvals of RMLs witnessed a decrease of 57.1%.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased by 14.7% month-to-month to MOP282 million. The equitable mortgage extended to residents, which accounted for 96.8% of the total, decreased 11.3%. When compared with the same period of 2014, new RMLs collateralised by uncompleted units decreased by 89.7%.

New CRELs grew by 51.8% month-to-month to MOP6.2 billion; of which, 95.8% was granted to residents. In terms of value, new CRELs to residents increased 64.6% whereas those to non-residents decreased 45.4%. On an annual basis, new approvals of CRELs dropped by 42.7%.

Outstanding balances

As at end-June 2015, the outstanding value of RMLs reached MOP165.5 billion, an increase of 1.4% from one month earlier or 20.1% from a year ago. The resident component made up 94.1% of the total. Compared to end-May 2015, outstanding RMLs to residents and non-residents rose 1.5% and 0.7% respectively.

Concurrently, the outstanding value of CRELs increased 1.1% from end-May 2015 and was up 34.0% from end-June 2014 to MOP140.8 billion. Residents accounted for 89.2% of the loans. Compared with one month earlier, outstanding CRELs to residents grew 1.3% whereas those to non-residents dropped 0.9%.

Delinquency ratios

At the end of June 2015, the delinquency ratio for RMLs was 0.07, down 0.01 percentage point from a month ago or up 0.01 percentage point from a year ago. The ratio for CRELs reached 0.07, up 0.03 percentage points from a month ago or remained virtually unchanged from end-June 2014.