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 April 2020. With regard to the outstanding balances, RMLs remained virtually unchanged whereas CRELs witnessed an increase.

New lending approved

In April 2020, new RMLs approved by Macao banks dropped by 35.1% month-to-month to MOP2.01 billion. Of which, new RMLs to residents, representing 99.7% of the total, fell by 34.7% to MOP2.01 billion; the non-resident component also decreased to MOP5.2 million. The monthly average of new RMLs approved between February and April 2020 was MOP2.2 billion, down by 13.1% from the previous period (January to March 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) fell by 53.0% month-to-month to MOP234.1 million. On an annual basis, new equitable mortgage approved also dropped by 61.5%.

New CRELs dropped by 56.5% month-to-month to MOP2.39 billion. Within this total, new CRELs to residents, which occupied 99.0% of the total, decreased by 49.0% to MOP2.37 billion; new CRELs to non-residents also fell to MOP25.0 million. The monthly average of new CRELs approved between February and April 2020 was MOP3.8 billion, down by 0.5% as compared with the previous period (January to March 2020). 

Outstanding balances

As at end-April 2020, the outstanding value of RMLs was MOP231.4 billion, which remained virtually unchanged from the preceding month but up by 5.4% from a year ago. Of which, the resident component made up 93.9% of the loans. When compared with the previous month, outstanding RMLs to residents stayed virtually unchanged whereas those to non-residents dropped by 0.1%.

The outstanding value of CRELs was MOP181.7 billion, which grew by 0.3% from a month earlier but fell by 7.5% from a year ago. Residents accounted for 93.6% of the loans. Compared with a month earlier, outstanding CRELs to residents increased by 0.4% whereas those to non-residents fell by 1.8%.

Delinquency ratios

At the end of April 2020, the delinquency ratio for RMLs stood at 0.26%, up by 0.01 percentage point from the preceding month or 0.02 percentage points over a year earlier. The ratio for CRELs was 0.46%, up by 0.01 percentage point from a month ago or 0.22 percentage points from end-April 2019.