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

New lending approved

In May 2020, new RMLs approved by Macao banks rose by 34.7% month-to-month to MOP2.71 billion. Of which, new RMLs to residents, representing 99.7% of the total, grew by 34.7% to MOP2.71 billion; the non-resident component also increased by 50.2% to MOP7.9 million. The monthly average of new RMLs approved between March and May 2020 was MOP2.6 billion, up by 19.4% from the previous period (February to April 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) grew by 25.2% month-to-month to MOP293.2 million. On an annual basis, new equitable mortgage approved dropped by 51.1%.

New CRELs fell by 23.9% month-to-month to MOP1.82 billion. Within this total, new CRELs to residents, which occupied 96.4% of the total, decreased by 25.9% to MOP1.76 billion whereas those to non-residents rose by 163.1% from a relatively low base to MOP65.7 million. The monthly average of new CRELs approved between March and May 2020 was MOP3.2 billion, down by 14.7% as compared with the previous period (February to April 2020). 

Outstanding balances

As at end-May 2020, the outstanding value of RMLs was MOP232.0 billion, which grew by 0.2% from a month earlier or 4.8% from a year ago. Of which, the resident component made up 93.9% of the loans. When compared with the previous month, outstanding RMLs to residents rose by 0.2% whereas those to non-residents stayed virtually unchanged.

The outstanding value of CRELs decreased by 0.8% month-to-month or 4.0% from a year earlier to MOP180.1 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.6% of the loans. Compared with a month earlier, outstanding CRELs to residents dropped by 0.9% whereas those to non-residents rose by 0.1%.

Delinquency ratios

At the end of May 2020, the delinquency ratio for RMLs stood at 0.27%, virtually unchanged from a month ago but up by 0.02 percentage points over a year earlier. The ratio for CRELs remained at 0.46% but rose by 0.19 percentage points from end-May 2019.