HKMC's financial results highlights for first half of 2019
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The Hong Kong Mortgage Corporation Limited (HKMC) today (October 9) announced the highlights of its unaudited consolidated financial results for the first six months of 2019 (1H 2019) as follows:
2019 Half-Year Financial Results Highlights
- Unaudited consolidated profit after tax was HK$247 million (1H 2018:
HK$256 million); - Annualised return on shareholders' equity was 3.3% (1H 2018: 4.1%);
- Cost-to-income ratio was 48.9% (1H 2018: 41.8%);and
- Capital adequacy ratio was 28.6% as at June 30, 2019 (December 31, 2018: 26.8%).
2019 Half-Year Business Performance Highlights
Asset Purchase
- Purchased HK$955 million loan assets (1H 2018: HK$5 million);and
- Outstanding principal balance of the loan portfolio was HK$6.7 billion as at June 30, 2019 (December 31, 2018: HK$6.4 billion).
- Issued in total HK$14.8 billion corporate debts (note) (1H 2018:
HK$10.4 billion), being the most active corporate debt issuer in Hong Kong. Among them, the HKMC had issued 30-year bonds totalling HK$1 billion to promote the fixed-rate reverse mortgage business and local debt market development; - Outstanding balance of debt securities was HK$39.3 billion as at June 30, 2019 (December 31, 2018: HK$37.3 billion);
- Credit ratings of AA+ from S&P Global Ratings and Aa2 from Moody's, same as those of the HKSAR Government.
Mortgage Insurance Programme (MIP)
- New mortgage loans drawn down amounted to HK$15.7 billion (1H 2018: HK$18.9 billion);
- 78% of loans drawn down (in terms of 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 1,402 applications (1H 2018: 851 applications) under the Special Concessionary Measures (i.e. the 80% guarantee product) with a total loan amount of approximately HK$7.2 billion (1H 2018: approximately HK$3.6 billion). Since the launch of the 80% guarantee product in May 2012, 91% of the benefitted borrowers were small and medium-sized enterprises each with less than 50 employees.
Reverse Mortgage Programme (RMP)
- Approved 223 applications (1H 2018: 323 applications) under the RMP, with an average property value of HK$5.58 million and an average monthly payout of HK$17,610.
HKMC Annuity Plan
- Issued 1,004 policies, with total premiums received at around HK$780 million and an average premium of HK$777,000.
The Policy Reverse Mortgage Programme was launched in May 2019 as another retirement planning solution for retirees.
Further details of the HKMC's unaudited consolidated financial results and financial review for 1H 2019 are set out at the Annex.
Note: For debts with tenor of one year or above
Ends/Wednesday, October 9, 2019
Issued at HKT 16:00
Issued at HKT 16:00
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