HKMC Reports 2024 Financial Highlights Amid Market Challenges

The Hong Kong Mortgage Company Restricted (HKMC) has launched its 2024 monetary outcomes, showcasing a yr marked by strategic initiatives and market challenges. In line with the Hong Kong Financial Authority, the HKMC continued to assist Hong Kong’s financial stability and promote wider house possession, regardless of an more and more advanced financial setting.

Enterprise Highlights

In 2024, the HKMC acquired HK$3.9 billion in mortgage property, a notable enhance from HK$2.8 billion in 2023. The company additionally bought HK$5.1 billion in loans underneath the SME Financing Assure Scheme (SFGS) and HK$52 million from the Devoted 100% Mortgage Assure Schemes (DLGS). The second issuance of infrastructure loan-backed securities amounted to US$423.3 million, diversifying its portfolio throughout varied sectors.

Debt Issuance and Credit score Rankings

The HKMC issued HK$103.5 billion in company money owed, surpassing the earlier yr’s HK$98.3 billion, cementing its place as a number one issuer of Hong Kong greenback company bonds. The issuance included HK$12 billion in multi-tenor HKD benchmark bonds, marking the most important HKD senior unsecured public bond transaction at issuance. The company maintained sturdy credit score rankings of AA+ from S&P International Rankings and Aa3 from Moody’s, aligning with the Hong Kong SAR Authorities’s rankings.

Mortgage and Mortgage Applications

The Mortgage Insurance coverage Programme (MIP) facilitated HK$47.9 billion in new loans, with 56% secured on secondary market properties. Since 1999, the MIP has supported roughly 235,000 households with a complete mortgage drawdown of HK$869.8 billion. Underneath the SME Financing Assure Scheme, over 27,400 purposes have been accepted for the 80% Assure Product, totaling HK$118.4 billion in loans.

Monetary Efficiency

Regardless of a consolidated loss after tax of HK$418 million, a rise from the earlier yr’s HK$260 million loss, the HKMC’s adjusted revenue after tax was HK$787 million. This adjustment excludes the impacts of the annuity enterprise and market volatility on the reverse mortgage sector. The company’s capital adequacy ratio stood at 19.9%, effectively above the 8% minimal requirement.

Strategic Outlook

With a deal with prudent prefunding methods and strong communication with funding communities, the HKMC stays ready to navigate monetary turbulence. Its strategic initiatives, together with the event of retirement planning markets, proceed to assist its core missions and social goals.

For complete particulars, the 2024 Annual Report will likely be accessible on the HKMC’s official web site.

Picture supply: Shutterstock