According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) decreased while those of commercial real estate loans (CRELs) increased in February 2020. With regard to the outstanding balances, RMLs decreased whereas CRELs witnessed an increase.

New lending approved

In February 2020, new RMLs approved by Macao banks fell by 51.9% month-to-month to MOP1.44 billion. Of which, new RMLs to residents, representing 98.4% of the total, dropped by 52.0% to MOP1.42 billion; the non-resident component also decreased by 50.6% to MOP22.6 million. The monthly average of new RMLs approved between December 2019 and February 2020 was MOP2.5 billion, down by 20.9% from the previous period (November 2019 to January 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) reduced by 55.8% month-to-month to MOP222.4 million. On an annual basis, new equitable mortgage approved dropped by 41.5%.

New CRELs rose by 42.7% month-to-month to MOP3.5 billion. Within this total, new CRELs to residents, which occupied 95.6% of the total, increased by 38.6% to MOP3.3 billion; new CRELs to non-residents also rose by 293.8% from a relatively low base to MOP155.0 million. The monthly average of new CRELs approved between December 2019 and February 2020 was MOP2.8 billion, up by 15.6% as compared with the previous period (November 2019 to January 2020). 

Outstanding balances

As at end-February 2020, the outstanding value of RMLs decreased by 0.2% month-to-month but rose by 5.8% from a year earlier to MOP230.9 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 93.8% of the loans. When compared with the previous month, outstanding RMLs to residents and non-residents dropped by 0.2% and 1.2% respectively.

The outstanding value of CRELs was MOP180.5 billion, which grew by 1.2% from a month earlier but fell by 7.9% from a year ago. Residents accounted for 93.3% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents both increased by 1.2%.

Delinquency ratios

At the end of February 2020, the delinquency ratio for RMLs stood at 0.25%, which edged up 0.01 percentage point from a month ago or 0.08 percentage points over a year earlier. The ratio for CRELs was 0.45%, up by 0.07 percentage points from a month ago or 0.29 percentage points from end-February 2019.