Timothy Morano
Oct 07, 2024 07:25
The Hong Kong Mortgage Company Restricted (HKMC) broadcasts a notable drop in revenue for H1 2024, attributing the decline to hostile property worth impacts on its reverse mortgage enterprise.
The Hong Kong Mortgage Company Restricted (HKMC) has launched its unaudited monetary outcomes for the primary half of 2024, revealing a pointy lower in revenue, as reported by the Hong Kong Financial Authority. The HKMC’s revenue after tax for this era was HK$9 million, a considerable decline from HK$1,175 million within the first half of 2023. This downturn is primarily attributed to a drop in property costs, which adversely affected the reverse mortgage enterprise, contrasting with the earlier 12 months’s favorable circumstances.
Monetary Efficiency and Changes
Excluding sure variables, such because the outcomes of HKMC Annuity Restricted and the impression of property worth adjustments, the adjusted revenue after tax was HK$468 million, with an annualized return on fairness of 6.2% and a cost-to-income ratio of twenty-two.4%. These figures present an enchancment in comparison with the earlier 12 months’s adjusted revenue of HK$365 million, a 5.2% return on fairness, and a 26.6% cost-to-income ratio.
Regardless of reporting an accounting loss, the annuity enterprise’s embedded worth stood at roughly HK$14 billion as of June 30, 2024, indicating a sturdy monetary place. The Capital Adequacy Ratio (CAR) of the HKMC was a stable 20.7%, exceeding the minimal requirement of 8% set by the Monetary Secretary. The solvency ratios for HKMC Insurance coverage Restricted and HKMC Annuity Restricted had been additionally nicely above regulatory necessities.
Enterprise Actions and Market Engagement
Within the first half of 2024, HKMC acquired HK$2.1 billion in mortgage belongings and bought HK$4.6 billion in loans beneath the SME Financing Assure Scheme. The excellent stability of the mortgage portfolio was HK$107.1 billion as of June 30, 2024.
HKMC was probably the most energetic issuer within the Hong Kong greenback company bond market, issuing HK$57.1 billion in company money owed, together with a record-breaking HK$12 billion in triple-tranche HKD bonds. The establishment maintained sturdy credit score scores of AA+ and Aa3 from S&P World Scores and Moody’s, respectively.
Mortgage and Mortgage Assure Applications
The Mortgage Insurance coverage Programme drew down HK$28.3 billion in new loans, with a good portion secured on secondary market properties. The SME Financing Assure Scheme noticed over 66,900 functions permitted, totaling roughly HK$143.2 billion in loans since its inception.
The Devoted 100% Mortgage Assure Schemes, launched in 2023, permitted 220 functions with a complete mortgage quantity of HK$218.2 million by mid-2024. The Reverse Mortgage Programme additionally noticed elevated exercise, with 546 functions permitted, up from 277 within the first half of 2023.
HKMC continues to reveal resilience in its core operations amid market uncertainties, supported by a prudent prefunding technique and proactive communication with funding communities. For extra detailed data, the complete monetary report is obtainable on the Hong Kong Financial Authority web site.
Picture supply: Shutterstock
