**********************************************************
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Mortgage Corporation Limited (HKMC) today (September 15) announced the highlights of its unaudited financial results for the first six months of 2014 (1H 2014).
2014 Half-Year Financial Results Highlights
* Unaudited consolidated profit after tax was
HK$374 million (1H 2013: HK$508 million)
* Annualised return on shareholders' equity was 8.3%
(1H 2013: 10.7%)
* Cost-to-income ratio was 22.9% (1H 2013: 16%)
* Capital adequacy ratio was 23.1% as at
June 30, 2014 (December 31, 2013: 21%)
2014 Half-Year Business Performance Highlights
Asset Purchase
* Purchased HK$74 million loan assets
(1H 2013: HK$82 million)
* Outstanding principal balance of the loan portfolio
was HK$17.9 billion as at June 30, 2014
(December 31, 2013: HK$22.3 billion)
Debt Issuance
* Issued HK$8.5 billion corporate debts (note)
(1H 2013: HK$5.5 billion), being one of the most
active issuers in Hong Kong
* Outstanding balance of debt securities issued was
HK$37.4 billion as at 30 June 2014
(December 31, 2013: HK$31.4 billion)
* Credit ratings of AAA from Standard & Poor's and
Aa1 from Moody's, same as the ratings of the
HKSAR Government
Mortgage Insurance Programme (MIP)
* New mortgage loans drawn down under the MIP
amounted to HK$6.2 billion (1H 2013: HK$7 billion)
* MIP usage rate was 7.1 % (the amount of MIP loans
drawn down as a percentage of the total new
mortgage loans drawn down in the local market)
(1H 2013: 7.9%)
* 85% of the MIP loans drawn down (in terms of the
loan amount) were secured on properties in the
secondary market
SME Financing Guarantee Scheme (SFGS)
* Approved more than 1,000 applications for the 80%
guarantee products under the Special Concessionary
Measures with a total loan amount of approximately
HK$4.2 billion in 1H 2014
Reverse Mortgage Programme
* Approved 101 applications, with an average property
value of about HK$5.4 million and average monthly
payout of HK$15,200
Microfinance Scheme
* Approved 26 loans with a total loan amount of
HK$6 million
Further details of the HKMC's consolidated financial results and financial review for 1H 2014 are set out at Annex.
Note: For debts with tenor of one year or above.
Ends/Monday, September 15, 2014
Issued at HKT 17:21
NNNN
