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 increased in December 2020.  With regard to the outstanding balances, RMLs remained virtually unchanged whereas CRELs witnessed a decline.

New lending approved

In December 2020, new RMLs approved by Macao banks rose by 19.0% month-to-month to MOP3.47 billion. Of which, new RMLs to residents, representing 98.7% of the total, grew by 18.4% to MOP3.43 billion; the non-resident component also increased by 79.9% from a relatively low base to MOP45.1 million. The monthly average of new RMLs approved between October and December 2020 was MOP3.0 billion, a drop of 26.7% from the previous period (September to November 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased month-to-month by 56.7% to MOP493.1 million. On an annual basis, new equitable mortgage approved rose by 3.0%.

New CRELs expanded by 5.9% month-to-month to MOP1.96 billion. Within this total, new CRELs to residents, which occupied 99.3% of the total, increased by 6.1% to MOP1.94 billion whereas those to non-residents decreased by 17.3% to MOP14.2 million. The monthly average of new CRELs approved between October and December 2020 was MOP2.3 billion, down by 38.1% as compared with the previous period (September to November 2020). 

Outstanding balances

As at end-December 2020, the outstanding value of RMLs broadly stabilised at MOP234.9 billion from a month earlier but up by 1.8% from a year ago. Of which, the resident component made up 94.4% of the loans. When compared with the previous month, outstanding RMLs to residents increased by 0.1% whereas those to non-residents decreased by 1.3%.

The outstanding value of CRELs fell by 2.8% month-to-month or 5.6% from a year earlier to MOP168.6 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.3% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents dropped by 2.9% and 1.7% respectively.

Delinquency ratios

At the end of December 2020, the delinquency ratio for RMLs remained virtually unchanged from the previous month at 0.25%, but up by 0.02 percentage points over a year earlier. The ratio for CRELs was 0.50%, up by 0.01 percentage point from a month ago or 0.12 percentage points from end-December 2019.