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HKMC's financial results highlights for 2016
The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Mortgage Corporation Limited (HKMC) today (April 10) announced the highlights of its audited financial results for 2016 as follows:
2016 Financial Results Highlights
  • Consolidated profit after tax was HK$604 million (2015: HK$725 million)
  • Return on shareholders' equity was 6.8% (2015: 8.1%)
  • Cost-to-income ratio was 30.8% (2015: 25.7%)
  • Capital adequacy ratio was 21.3% as at December 31, 2016 (December 31, 2015: 21.9%)
  • No dividend was declared (2015: HK$725 million)

2016 Business Performance Highlights
Asset Purchase
  • Purchased HK$206 million loan assets (2015: HK$337 million)
  • Outstanding principal balance of the loan portfolio was HK$9.5 billion at the end of 2016 (2015: HK$11.5 billion)
Debt Issuance
  • Issued in total HK$16.2 billion corporate debts* (2015: HK$14 billion), being a major and active corporate debt issuer in Hong Kong
  • Outstanding balance of debt securities was HK$34.2 billion at the end of 2016 (2015: HK$33.5 billion)
  • Credit ratings of AAA from Standard & Poor's and Aa1 from Moody's, same as the ratings of the Hong Kong Special Administrative Region Government
Mortgage Insurance Programme (MIP)
  • New mortgage loans drawn down amounted to HK$24.6 billion (2015: HK$17.2 billion)
  • 79% of the loans drawn down (in terms of the loan amount) were secured on properties in the secondary market, demonstrating the importance of the MIP to homebuyers in the secondary market

SME Financing Guarantee Scheme
  • Approved 750 applications under the Special Concessionary Measures (i.e. 80% guarantee products) with a total loan amount of approximately HK$2.4 billion in 2016 (91% of the benefited borrowers since launch of the 80% guarantee product were small enterprises with less than 50 employees)
Reverse Mortgage Programme/Premium Loan Insurance Scheme
  • Approved 429 applications under the Reverse Mortgage Programme, with an average property value of HK$5.1 million and average monthly payout of HK$15,300
  • Approved 8 applications under the Premium Loan Insurance Scheme, with an average property value of HK$3.6 million and average lump-sum payout of HK$0.72 million
Microfinance Scheme
  • Approved 19 applications with a total loan amount of HK$4.6 million
     Further details of the HKMC's consolidated financial results and financial review for 2016 are set out at Annex.
* For debts with tenor of one year or above.
Ends/Monday, April 10, 2017
Issued at HKT 18:15
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