According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) dropped whereas commercial real estate loans (CRELs) grew in October 2012. With regard to outstanding balance, both RMLs and CRELs continued to grow.

New Lending Approved

In October 2012, new RMLs approved by Macao banks dropped 9.1% month-to-month to MOP4.2 billion; of which, 91.6% was extended to residents. In terms of value, new RMLs to residents and non-residents decreased 6.4% and 30.7% respectively.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) rose 15.0% month-to-month to MOP81.2 million. The equitable mortgage extended to residents, which accounted for 95.8% of the total, rose 22.7% whereas the amount to non-residents went down by 53.0%.

New CRELs expanded 63.0% month-to-month to MOP5.1 billion; of which, 99.1% was granted to residents. In terms of value, new CRELs to residents advanced 67.3% whereas the amount to non-residents dropped 59.1% compared with the previous month.

Outstanding Balances

As at end-October 2012, the outstanding value of RMLs reached MOP94.0 billion, an increase of 2.6% from one month earlier. The resident component made up 92.4% of the total. Outstanding RMLs to residents and non-residents grew by 2.6% and 2.4% respectively.

Concurrently, the outstanding value of CRELs edged up 0.1% from end-September to MOP65.6 billion. Residents accounted for 91.2% of the loans. Compared with one month earlier, outstanding CRELs to residents grew by 0.2% whereas those to non-residents slid 0.8%.

Delinquency Ratios

At the end of October 2012, the delinquency ratio for RMLs stood at 0.05%, down 0.01 percentage point from one month earlier. The ratio for CRELs went up 0.05 percentage points from end-September to 0.14%.