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 February 2021. With regard to the outstanding balances, RMLs rose whereas CRELs witnessed a decline.

New lending approved

In February 2021, new RMLs approved by Macao banks fell by 24.9% month-to-month to MOP2.13 billion. Of which, new RMLs to residents, representing 99.7% of the total, dropped by 23.9% to MOP2.13 billion; the non-resident component also decreased by 85.6% to MOP6.2 million. The monthly average of new RMLs approved between December 2020 and February 2021 was MOP2.8 billion, down by 8.5% from the previous period (November 2020 to January 2021). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) declined by 26.6% month-to-month to MOP236.9 million. On an annual basis, new equitable mortgage approved increased by 6.5%.

New CRELs shrank by 54.4% month-to-month to MOP1.64 billion. Within this total, new CRELs to residents, which occupied 93.5% of the total, decreased by 56.8% to MOP1.53 billion; new CRELs to non-residents rose to MOP107.3 million. The monthly average of new CRELs approved between December 2020 and February 2021 was MOP2.4 billion, down by 2.8% as compared with the previous period (November 2020 to January 2021). 

Outstanding balances

As at end-February 2021, the outstanding value of RMLs was MOP235.5 billion, which slightly rose by 0.1% month-to-month or 2.0% from a year ago. Of which, the resident component made up 94.5% of the loans. When compared with the previous month, outstanding RMLs to residents edged up by 0.1% whereas those to non-residents dropped by 1.0%.

The outstanding value of CRELs decreased by 4.3% month-to-month or 11.6% from a year earlier to MOP159.6 billion, attributable to the repayment of loans with large denomination. Residents accounted for 92.9% of the loans. Compared with a month earlier, outstanding CRELs to residents decreased by 4.6% whereas those to non-residents rose by 0.6%.

Delinquency ratios

At the end of February 2021, the delinquency ratio for RMLs remained virtually unchanged from the previous month at 0.25%, but down by 0.01 percentage point from a year earlier. The ratio for CRELs was 0.53%, up by 0.02 percentage points from a month ago or 0.07 percentage points from end-February 2020.