According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both decreased in October 2018.  With regard to the outstanding balance, RMLs increased from a month earlier whereas CRELs witnessed a monthly decrease.

New lending approved

In October 2018, new RMLs approved by Macao banks dropped by 65.2% from a relatively high base in the previous month to MOP3.4 billion.  Of which, new RMLs to residents, accounting for 98.7% of the total, decreased by 60.1% to MOP3.3 billion; the non-resident component also dropped to MOP43.2 million. The monthly average of new RMLs approved between August and October 2018 was MOP6.8 billion, down by 8.4% from the previous period (July to September 2018). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) rose by 98.8% from a relatively low base in the previous month to MOP341.7 million; of which, the equitable mortgage extended to residents accounted for 99.1% of the total.  On an annual basis, new equitable mortgage approved increased by 81.8%.

New CRELs dropped by 4.8% month to month to MOP3.2 billion. Within this total, new CRELs to residents, which occupied 94.2% of the total, decreased by 10.1% to MOP3.0 billion whereas those to non-residents rose to MOP184.7 million. The monthly average of new CRELs approved between August and October 2018 was MOP5.4 billion, down by 5.3% when compared with the previous period (July to September 2018). 

Outstanding balances

As at end-October 2018, the outstanding value of RMLs was MOP212.0 billion, up by 0.4% from a month earlier or 12.4% from a year ago. The resident component made up 92.6% of the total.  When compared with the previous month, outstanding RMLs to residents rose by 0.5% whereas those to non-residents decreased by 0.2%.

The outstanding value of CRELs was MOP186.6 billion, down by 0.3% month-to-month but up by 5.9% from a year earlier.  Residents accounted for 93.3% of the loans.  Compared with a month earlier, outstanding CRELs to residents and to non-residents dropped by 0.2% and 1.4% respectively.

Delinquency ratios

At the end of October 2018, the delinquency ratio for RMLs was 0.16%, down by 0.01 percentage point from the preceding month or 0.02 percentage points over a year earlier.  The ratio for CRELs was 0.16%, unchanged from a month ago and from end-October 2017.