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 increased in June 2020. With regard to the outstanding balances, RMLs increased whereas CRELs witnessed a decline.

New lending approved

In June 2020, new RMLs approved by Macao banks rose by 70.5% month-to-month to MOP4.63 billion. Of which, new RMLs to residents, representing 68.5% of the total, grew by 17.1% to MOP3.17 billion whereas those to non-residents rose to MOP1.46 billion. The monthly average of new RMLs approved between April and June 2020 was MOP3.1 billion, up by 19.4% from the previous period (March to May 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) fell by 9.0% month-to-month to MOP266.8 million. On an annual basis, new equitable mortgage approved dropped by 42.5%.

New CRELs rose by 32.9% month-to-month to MOP2.42 billion. Within this total, new CRELs to residents, which occupied 97.8% of the total, increased by 34.9% to MOP2.37 billion whereas those to non-residents decreased by 20.7% to MOP52.1 million. The monthly average of new CRELs approved between April and June 2020 was MOP2.2 billion, down by 31.7% as compared with the previous period (March to May 2020). 

Outstanding balances

As at end-June 2020, the outstanding value of RMLs was MOP232.3 billion, which grew by 0.1% from a month earlier or 3.6% from a year ago. Of which, the resident component made up 94.0% of the total. When compared with the previous month, outstanding RMLs to residents rose by 0.2% whereas those to non-residents dropped by 0.3%.

The outstanding value of CRELs decreased by 0.4% month-to-month or 6.2% from a year earlier to MOP179.5 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 and non-residents dropped by 0.4% and 0.3% respectively.

Delinquency ratios

At the end of June 2020, the delinquency ratio for RMLs remained virtually unchanged from the previous month at 0.26%, but up by 0.04 percentage points over a year earlier. The ratio for CRELs stood at 0.44%, down by 0.02 percentage points from a month ago but up by 0.16 percentage points over a year earlier.