Financial Health of Hong Kong Mortgage Corporation in 2023
The Hong Kong Mortgage Corporation Limited (HKMC) reported a loss of HK$260 million for 2023, a significant change from the profit in 2022. Despite this, the corporation’s financial metrics and business performance have shown resilience.
Adjusted Profit and Metrics
Excluding specific adjustments, HKMC’s adjusted profit after tax for 2023 was HK$724 million, with a return on equity of 5.3% and a cost-to-income ratio of 28.1%. This marks an improvement from the previous year.
Capital Position and Solvency
The HKMC maintained a strong Capital Adequacy Ratio (CAR) of 21.6% in 2023, well above the regulatory requirement. The solvency ratios of its subsidiaries exceeded the regulatory standards.
Business Highlights
Asset Purchase and Securitisation
- Acquired HK$2.8 billion in loan assets.
- Purchased HK$24.5 billion in loans under various schemes.
- Issued US$404.8 million in infrastructure loan-backed securities.
- Outstanding loan portfolio stood at HK$109.5 billion.
Debt Issuance
- Issued HK$98.3 billion in corporate debts.
- Second largest social bond issuance in Asia.
- Maintained credit ratings from top agencies.
- Outstanding debt securities balance of HK$161.7 billion.
Mortgage Insurance Programme (MIP)
- New MIP loans drawn down amounted to HK$83.1 billion.
- 71% of loans were secured on properties in the secondary market.
SME Financing Guarantee Scheme
- Approved over 25,400 applications with a total loan amount of HK$111.1 billion.
- Approved over 10,800 applications with a total loan amount of HK$20.3 billion.
- Approved over 65,600 applications with a total loan amount of HK$139.1 billion for the Special 100% Loan Guarantee.
Dedicated 100% Loan Guarantee Schemes
- Approved 204 applications for a total loan amount of about HK$0.2 billion.
- Two applications approved for the Battery Electric Taxis scheme.
Reverse Mortgage Programme
- 797 applications approved, with an average property value of HK$5.4 million.
Annuity Business
- Issued 2,205 policies with total premiums of HK$1.6 billion.
100% Personal Loan Guarantee Scheme (PLGS)
- Around 67,000 applications approved with a total loan amount of about HK$4.7 billion since its launch in 2021.
Despite challenges, HKMC’s financial stability and strategic approach have supported its policy roles and social objectives. For more details, visit the Hong Kong Monetary Authority website.
Hot Take: Closing Thoughts for Crypto Enthusiasts
The financial results of Hong Kong Mortgage Corporation in 2023 reflect a mix of challenges and successes. By adapting to market conditions and maintaining a solid capital position, HKMC has navigated through difficulties to continue fulfilling its strategic objectives. As a crypto enthusiast, observing the financial resilience of traditional financial institutions can provide valuable insights into the broader economic landscape. Stay informed about such developments to enhance your understanding of the financial ecosystem!
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