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

New lending approved

In October 2020, new RMLs approved by Macao banks dropped by 59.8% month-to-month to MOP2.74 billion. Of which, new RMLs to residents, representing 98.7% of the total, fell by 47.2% to MOP2.70 billion; the non-resident component also decreased to MOP34.9 million. The monthly average of new RMLs approved between August and October 2020 was MOP4.8 billion, down by 27.9% from the previous period (July to September 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased month-to-month by 33.8% to MOP349.4 million. On an annual basis, new equitable mortgage approved rose by 40.8%.

New CRELs dropped by 50.7% month-to-month to MOP3.05 billion. Within this total, new CRELs to residents, which occupied 98.8% of the total, decreased by 50.4% to MOP3.01 billion; new CRELs to non-residents also fell by 66.9% to MOP35.8 million. The monthly average of new CRELs approved between August and October 2020 was MOP4.5 billion, up by 13.2% as compared with the previous period (July to September 2020). 

Outstanding balances

As at end-October 2020, the outstanding value of RMLs was MOP234.7 billion, which rose by 0.3% month-to-month or 2.5% from a year ago. Of which, the resident component made up 94.4% of the loans. When compared with the previous month, outstanding RMLs to residents and non-residents increased by 0.3% and 0.7% respectively.

The outstanding value of CRELs decreased by 0.6% month-to-month or 4.9% from a year earlier to MOP173.0 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.3% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents dropped by 0.5% and 1.2% respectively.

Delinquency ratios

At the end of October 2020, the delinquency ratio for RMLs remained virtually unchanged from the previous month at 0.27%, but up by 0.03 percentage points over a year earlier. The ratio for CRELs stood at 0.42%, down by 0.03 percentage points from a month ago but up by 0.03 percentage points from end-October 2019.