HKMC Reports 2024 Financial Highlights Amid Market Challenges

The Hong Kong Mortgage Corporation Limited (HKMC) has released its 2024 financial results, showcasing a year marked by strategic initiatives and market challenges. According to the Hong Kong Monetary Authority, the HKMC continued to support Hong Kong's economic stability and promote wider home ownership, despite an increasingly complex economic environment.

Business Highlights

In 2024, the HKMC acquired HK$3.9 billion in loan assets, a notable increase from HK$2.8 billion in 2023. The corporation also purchased HK$5.1 billion in loans under the SME Financing Guarantee Scheme (SFGS) and HK$52 million from the Dedicated 100% Loan Guarantee Schemes (DLGS). The second issuance of infrastructure loan-backed securities amounted to US$423.3 million, diversifying its portfolio across various sectors.

Debt Issuance and Credit Ratings

The HKMC issued HK$103.5 billion in corporate debts, surpassing the previous year's HK$98.3 billion, cementing its position as a leading issuer of Hong Kong dollar corporate bonds. The issuance included HK$12 billion in multi-tenor HKD benchmark bonds, marking the largest HKD senior unsecured public bond transaction at issuance. The corporation maintained strong credit ratings of AA+ from S&P Global Ratings and Aa3 from Moody’s, aligning with the Hong Kong SAR Government's ratings.

Mortgage and Loan Programs

The Mortgage Insurance Programme (MIP) facilitated HK$47.9 billion in new loans, with 56% secured on secondary market properties. Since 1999, the MIP has supported approximately 235,000 families with a total loan drawdown of HK$869.8 billion. Under the SME Financing Guarantee Scheme, over 27,400 applications were approved for the 80% Guarantee Product, totaling HK$118.4 billion in loans.

Financial Performance

Despite a consolidated loss after tax of HK$418 million, an increase from the previous year's HK$260 million loss, the HKMC's adjusted profit after tax was HK$787 million. This adjustment excludes the impacts of the annuity business and market volatility on the reverse mortgage sector. The corporation's capital adequacy ratio stood at 19.9%, well above the 8% minimum requirement.

Strategic Outlook

With a focus on prudent prefunding strategies and robust communication with investment communities, the HKMC remains prepared to navigate financial turbulence. Its strategic initiatives, including the development of retirement planning markets, continue to support its core missions and social objectives.

For comprehensive details, the 2024 Annual Report will be available on the HKMC’s official website.