According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) increased while commercial real estate loans (CRELs) declined in May 2014. With regard to outstanding balance, RMLs and CRELs both witnessed increases.

New Lending Approved

In May 2014, new RMLs approved by Macao banks rose 72.9% month-to-month to MOP6.0 billion; of which, 98.4% was extended to residents. In terms of value, new RML to residents increased 75.3% whereas those to non-residents decreased 7.1%. When compared with the same period of 2013, new approvals of RMLs witnessed increase of 46.2%.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 135.8% month-to-month to MOP869.2 million. The equitable mortgage extended to residents, which accounted for 96.5% of the total, increased 132.1%. When compared with the same period of 2013, new RMLs collateralised by uncompleted units expanded 128.4%.

New CRELs dropped by 19.7% month-to-month to MOP5.6 billion; of which, 98.1% was granted to residents. In terms of value, new CRELs to residents and to non-residents decreased 19.7% and 16.1% respectively. On an annual basis, new approvals of CRELs grew by 111.7%.

Outstanding Balances

As at end-May 2014, the outstanding value of RMLs reached MOP130.6 billion, an increase of 3.0% from one month earlier or 25.0% from a year ago. The resident component made up 95.3% of the total. Compared to end-April 2014, outstanding RMLs to residents and non-residents grew 3.1% and 0.7% respectively.

Concurrently, the outstanding value of CRELs increased 2.5% from end-April 2014 and was up 33.0% from end-May 2013 to MOP102.3 billion. Residents accounted for 92.0% of the loans. Compared with one month earlier, outstanding CRELs to residents and to non-residents grew 2.7% and 0.4% respectively.

Delinquency Ratios

At the end of May 2014, the delinquency ratio for RMLs remained unchanged at 0.07% or increased by 0.01 percentage point from a year ago. The ratio for CRELs stayed the same at 0.07% or down 0.01 percentage point from end-May 2013.