According to statistics released today by the Monetary Authority of Macao, the outstanding balance of small and medium-sized enterprise (SME) loans recorded growth in the first half of 2018, with the share of SME loans to major industries remained broadly stable. On the other hand, newly-approved SME credit retreated.

New lending approved

In the first half of 2018, new SME credit limit approved by Macao banks totalled MOP10.6 billion, down 18.4% from the second half of 2017 or 16.1% from the same period of 2017.  The collateralised ratio, which indicates the proportion of credit limit with tangible assets pledged, was 77.4%, up 4.2 percentage points when compared with the last survey period, but down 8.8 percentage points when compared with the same period of 2017.

Credit utilisation

As at end-June 2018, the outstanding balance of total SME loans increased 5.7% from end-2017 or 12.6% from a year earlier to MOP81.9 billion.  Compared to the last survey period, SME loans to “restaurants, hotels and similar activities”, “construction and public works” and “information technology” increased at respective rates of 64.1%, 10.9% and 10.3% whereas those to “transport, warehouse and communications” dropped 0.4%.

The utilisation rate, defined as the proportion of outstanding credit balance to the credit limit granted, increased 5.8 percentage points from six months ago or 8.6 percentage points from a year earlier to 77.1%. 

Delinquent loans

At end-June 2018, the outstanding balance of delinquent SME loans rose 10.8% from six months ago or 12.5% from the preceding year to MOP578.5 million.  The delinquency ratio, a ratio of delinquent loans outstanding balance to total SME loans outstanding, rose 0.03 percentage points from end-December 2017 to 0.71%.  Meanwhile, the ratio kept virtually stable when compared with the same period of 2017.