HKMC's Annual Results Highlights for 2024
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Mortgage Corporation Limited (HKMC) today (May 26) announced the highlights of its annual results for 2024.
Business Highlights
In 2024, the HKMC and its subsidiaries continued to fulfil their core missions and social objectives, contributing to the steady growth of Hong Kong's economy amid an increasingly complex and evolving environment. The missions of the HKMC are to promote: the stability of the banking sector, wider home ownership, the development of the local debt market, and the development of the retirement planning market.
Asset Purchase and Securitisation
Acquired HK$3.9 billion of loan assets (2023: HK$2.8 billion)
Purchased HK$5.1 billion of loans (2023: HK$24.5 billion) from the Special 100% Loan Guarantee under the SME Financing Guarantee Scheme (SFGS) and HK$52 million of loans (2023: HK$189 million) from the Dedicated 100% Loan Guarantee Schemes (DLGS)
Completed the second issuance of infrastructure loan-backed securities. The issuance consists of multiple classes of US dollar-denominated secured notes backed by the cash flows from a diversified portfolio of project and infrastructure loans across different geographies and sectors, with a total size of US$423.3 million
Outstanding balance of loan portfolio was HK$95.5 billion as at December 31, 2024 (December 31, 2023: HK$109.5 billion)
Debt Issuance
Issued corporate debts of HK$103.5 billion for 2024 (2023: HK$98.3 billion), being the most active issuer in the domestic market of Hong Kong dollar (HKD) corporate bonds
Successfully completed the issuance of multi-tenor HKD benchmark bonds of HK$12 billion, being the largest-ever HKD senior unsecured public bond transaction at the time of issuance
Successfully completed the third social bond issuance of approximately HK$23.8 billion equivalent in triple-currency of HKD, Renminbi and US dollar, being the largest social bond issuance in Asia Pacific
Outstanding balance of debt securities issued was HK$148.3 billion as at December 31,2024 (December 31, 2023: HK$161.7 billion)
Credit ratings of AA+ from S&P Global Ratings and Aa3 from Moody's, same as those of the Hong Kong Special Administrative Region Government
Mortgage Insurance Programme (MIP)
New MIP loans drawn down amounted to HK$47.9 billion (2023: HK$83.1 billion), of which 56per cent were secured on properties in the secondary market
It had facilitated home purchase for about 235 000 families in total since its launch in 1999, with an aggregate loan drawdown of HK$869.8 billion
SME Financing Guarantee Scheme
For the 80% Guarantee Product, more than 27 400 applications were approved with a total loan amount of approximately HK$118.4 billion since its launch in 2012.For the 90% Guarantee Product, over 14 700 applications were approved with a total loan amount of approximately HK$26.5 billion since its launch in 2019.The application periods for both 80% and 90% Guarantee Products have been extended for two years until end-March 2026
In respect of the Special 100% Loan Guarantee, more than 67 000 applications were approved with a total loan amount of approximately HK$143.7 billion since its launch in 2020, of which HK$143.6 billion of loan assets were purchased by the HKMC.The application period expired at end-March 2024
Since the inception of each Guarantee Product, the 80% and 90% Guarantee Products had benefitted over 22 400 local small and medium-sized enterprises (SMEs) and 374 400 related employees. The Special 100% Loan Guarantee had benefitted more than 40 000 local SMEs and around 400 000 related employees
Dedicated 100% Loan Guarantee Schemes
Under the DLGS for Travel Sector and the DLGS for Cross-boundary Passenger Transport Trade, 227 applications were approved with a total loan amount of approximately HK$0.22 billion since the launch of the DLGS in 2023.Their application periods expired in October 2024
In respect of the DLGS for Battery Electric Taxis, more than 100 applications were approved with a total loan amount of approximately HK$36.3 million since its launch in 2023
Annuity Business
Taking a total of 10 830 policies (2023: 2 205 policies), with total premiums of HK$4.4 billion (2023: HK$1.6 billion)
Since its launch in 2018, it had helped about 22 000 senior citizens to convert their savings into lifelong stable income
Reverse Mortgage Programme (RMP)
1 033 applications were approved (2023: 797 applications), with an average property value of HK$4.7 million and an average monthly payout of HK$11,300
Since its launch in 2011, 7 924 applications were approved
Financial Highlights
The audited consolidated loss after tax of the HKMC for 2024 was HK$418 million (2023: consolidated loss after tax of HK$260 million). The increase in accounting loss was largely due to the negative impact of property price drop on fast-growing reverse mortgage business which was partly mitigated by the increase in net interest income together with the return from the placements with the Exchange Fund.
Since the HKMC is mandated to promote the development of the retirement planning market in Hong Kong, it is dedicated to advancing the annuity and reverse mortgage businesses which are subject to the increasing sensitivity and volatility of mark-to-market accounting effects. For better assessment of the financial performance, after excluding (i) the accounting results of the HKMC Annuity Limited (HKMCA), a wholly-owned subsidiary of the HKMC operating annuity business; (ii) the impact of property price changes on the reverse mortgage business given its long-term nature; and (iii) the consolidation adjustments in respect of loan portfolios with insurance cover provided by the HKMC Insurance Limited (HKMCI), another wholly-owned subsidiary of the HKMC operating general insurance business, the adjusted profit after tax, return on equity and cost-to-income ratio for 2024 would be HK$787 million, 4.8per cent and 27.6per cent respectively (2023: HK$724 million, 5.3per cent and 28.1per cent respectively).
At the end of 2024, the embedded value of the annuity business was about HK$12.4 billion on the basis of the Insurance Ordinance, which comprised HK$11.2 billion of total equity and HK$1.2 billion of present value of future profits. This indicates a solid financial position of the HKMCA to develop the annuity business in the long term.
In accordance with the Guidelines on Capital Adequacy Ratio (CAR), the calculation of capital ratio follows the basis of consolidation for financial reporting with the exclusion of regulated subsidiaries which are subject to separate requirements on the maintenance of adequate capital (i.e. the HKMCA and the HKMCI, both being regulated by the Insurance Authority). Excluding the investment cost of such unconsolidated regulated subsidiaries, the HKMC's CAR remained solid at 19.9per cent as at December 31, 2024 (December 31, 2023: 21.6 per cent), well above the minimum requirement of 8per cent stipulated by the Financial Secretary.
The solvency ratios of the HKMCA and the HKMCI as at December 31, 2024, calculated in accordance with Insurance (Valuation and Capital) Rules (Cap. 41R) under the new Risk-based Capital regime effective on July 1, 2024, were about 1.7 times and 4 times respectively, each well above the minimum regulatory requirements stipulated by the Insurance Authority.
Amid uncertain market conditions, the HKMC adopted prudent prefunding strategy and proactively communicated with local and international investment communities for debt issuance to support its sizable loan purchase and fulfil its refinancing needs. With strong financing capability and liquidity position, the HKMC's core operations remain resilient and stand ready to cope with any financial turbulence ahead in performing its strategic policy roles and attaining its social objectives.
The 2024 Annual Report of the HKMC containing detailed information of the financial results will be published on the HKMC's website in due course.
CHP reminds public to take precautions against cold weather
The Centre for Health Protection (CHP) of the Department of Health (DH) today (January 3) reminded the public, particularly the elderly, people with chronic illnesses, outdoor workers, pregnant women, infants and children, to adopt appropriate measures to protect their health in view of the cold weather.
Photo source: reference image
Elderly and people with chronic illnesses
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A spokesman for the CHP said that in general, elderly people have less insulating fat, and their body temperature control mechanisms would be weaker. Their body may not respond appropriately to the cold weather. In addition, some senior persons may have decreased mobility, which can impair their ability to generate and conserve body heat.
Chronic illnesses, such as hypertension, diabetes or hypothyroidism, would lower their metabolic rate, subsequently causing their body to generate less heat. Besides, persons with chronic illnesses, such as chronic respiratory illnesses or cardiovascular and cerebrovascular diseases, are vulnerable to disease aggravation due to cold weather.
The spokesman reminded the public, in particular the elderly and persons with chronic illnesses, to adopt the following preventive measures:
- Take note of the weather forecast. Wear warm clothing, including hats, scarves, gloves and socks, accordingly;
- Consume sufficient food to ensure adequate calorie intake;
- Perform regular exercise to facilitate blood circulation and heat production;
- Stay in a warm environment. Avoid going out in the morning and at night when the temperature is lower, and avoid prolonged outdoor exposure;
- Use heaters with care and maintain adequate indoor ventilation;
- Avoid alcoholic beverages. Drinking alcohol cannot keep you warm. Alcohol accelerates the loss of body heat through dilated blood vessels, resulting in chilling instead; and
- Seek medical advice if feeling unwell.
Infants, children and pregnant women
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Infants and young children are more susceptible to heat loss during the cold weather. The spokesman reminded parents that they should ensure babies are sufficiently warm, but it is also important to keep babies relatively lightly clothed to avoid overheating them. When children engage in outdoor activities, their clothing should be adjusted accordingly, and changed quickly if soaked. Infants, young children and pregnant women should also try to avoid going out in the morning and at night when the temperature is lower.
Parents should observe the following safety measures when putting their children to bed:
- Keep the room well ventilated and at a comfortable temperature;
- Always place babies on their backs to sleep. Leave their heads, faces and arms uncovered during sleep;
- Babies do not need pillows. Place babies on a firm and well-fitted mattress to sleep. Avoid soft objects, pillows and loose bedding;
- Let babies sleep in a cot placed near their parents' bed; and
- Maintain a smoke-free environment.
Outdoor workers
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Outdoor workers should take heed of the weather report and wear appropriate warm clothing for work. Clothing should be changed as soon as possible if soaked. When the Cold Weather Warning is in force, they should take appropriate precautions. They should take a break immediately and seek help and medical attention if feeling unwell.
General public
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In addition, many respiratory pathogens, including influenza and SARS-CoV-2, may have increasing activity and community transmission during winter. Seasonal influenza vaccination is recommended for all persons aged 6 months or above, except those with known contraindications. Persons at higher risk of getting influenza and its complications, including the elderly and children, should receive seasonal influenza vaccinations early. Please see details of the vaccination schemes on the CHP's website.
A person who gets influenza and COVID-19 at the same time may become more seriously ill and would have a higher risk of death. It is important for elderly persons, especially those residing in residential care homes, to receive both a seasonal influenza vaccination and a COVID-19 vaccination. They should also receive an additional booster against COVID-19 according to recommendations as soon as possible. The public should also maintain good personal and environmental hygiene against respiratory illnesses and note the following:
- Surgical masks can prevent transmission of respiratory viruses from ill persons. It is essential for persons who are symptomatic (even if having mild symptoms) to wear a surgical mask;
- Wear a surgical mask when taking public transport or staying in crowded places. It is important to wear a mask properly, including performing hand hygiene before wearing and after removing a mask;
- Avoid touching one's eyes, mouth and nose;
- Wash hands with liquid soap and water properly whenever possibly contaminated;
- When hands are not visibly soiled, clean them with 70 to 80 per cent alcohol-based handrub;
- Cover the mouth and nose with tissue paper when sneezing or coughing. Dispose of soiled tissue paper properly into a lidded rubbish bin and wash hands thoroughly afterwards;
- Maintain good indoor ventilation;
- When having respiratory symptoms, wear a surgical mask, refrain from work or attending classes at school, avoid going to crowded places and seek medical advice promptly; and
- Maintain a balanced diet, exercise regularly, take adequate rest, do not smoke and avoid overstress.
Food-borne diseases, particularly those linked to hotpot cuisine, are also common in cold weather. The following preventive measures should be taken:
- Wash hands before handling and consuming food;
- Do not patronise unlicensed vendors or those with poor hygienic standards while selecting food;
- Wash and cook all food thoroughly;
- Vegetables should be washed thoroughly in clean running water before cooking and consumption. When appropriate, scrub vegetables with hard surfaces with a clean brush to remove dirt and substances, including pesticide residues and contaminants, from surfaces and crevices;
- Shrimps should be fully cooked until the shells turn red and the flesh turns white and opaque;
- For shellfish such as scallops and geoduck, scrub the shells thoroughly and remove internal organs;
- Do not eat any undercooked freshwater aquatic products. To ensure that the food is thoroughly cooked, the centre of the food should reach a temperature of at least 75 degrees Celsius so as to destroy pathogens;
- Most hotpot ingredients should be stored in a refrigerator at 4 degrees C or below, while frozen food should be stored in a freezer at -18 degrees C or below;
- Never use raw eggs as a dipping sauce for hotpot; and
- Use different sets of chopsticks to handle raw and cooked food to avoid cross-contamination.
In addition, when using fuel-burning appliances, especially in indoor areas, the public should ensure adequate ventilation to avoid harmful exposure to carbon monoxide (CO) and prevent CO poisoning.
Fo more health information, the public may call the DH's Health Education Infoline (2833 0111) or visit the CHP's website and Facebook Fanpage as well as press releases of the Labour Department on precautions against cold weather for outdoor workers and their employers when the Cold Weather Warning is in force.
The public may also call Dial-a-Weather (1878 200) or visit the website of the Hong Kong Observatory for the latest weather information and forecasts, or its page on Weather Information for Senior Citizens.
The Centre for Health Protection (CHP), Photo source: reference image
