The Hong Kong Mortgage Corporation Limited (HKMC) announced highlights of its 2025 annual results, including an audited consolidated loss after tax of HKD 109 million (2024: HKD 418 million) and an adjusted profit after tax of HKD 1,497 million (2024: HKD 787 million) after excluding the accounting results of HKMC Annuity Limited, certain property price impacts on the reverse mortgage business, and consolidation adjustments linked to HKMC Insurance Limited. The change in reported results was attributed mainly to increased income from placements with the Exchange Fund, higher net interest income, a recovery in the local property market benefiting the reverse mortgage business, and revaluation gains on USD exposures, partly offset by a higher accounting loss in the annuity business and the impact of lower discount rates on insurance liabilities. Operationally, HKMC acquired HKD 6.9 billion of loan assets and purchased HKD 158 million of loans under the Dedicated 100% Loan Guarantee Schemes, while the outstanding loan portfolio fell to HKD 78.6 billion at 31 December 2025 (2024: HKD 95.5 billion). It completed a third infrastructure loan-backed securities issuance totalling about USD 450.5 million, and issued corporate debts of HKD 70.5 billion, remaining the most active issuer in the domestic HKD corporate bond market. A four-tranche multi-currency benchmark transaction totalled HKD 25.3 billion, including a 30-year HKD social bond tranche to support the Reverse Mortgage Programme, and outstanding debt securities reached HKD 155.2 billion at year-end; credit ratings were AA+ (S&P Global Ratings) and Aa3 (Moody’s). The SME Financing Guarantee Scheme update confirmed the 80% Guarantee Product application period has been extended to end-March 2028, while the 90% Guarantee Product expired at end-March 2026 and the Special 100% Loan Guarantee expired at end-March 2024. HKMC reported a capital adequacy ratio of 18.1% at 31 December 2025 (minimum requirement: 8%), and disclosed solvency ratios of about 2 times for HKMC Annuity Limited and 3.9 times for HKMC Insurance Limited under the risk-based capital regime. The 2025 annual report is due to be published on HKMC’s website in due course.
Hong Kong Monetary Authority 2026-04-21
Hong Kong Monetary Authority highlights Hong Kong Mortgage Corporation 2025 results with HKD 109 million loss and HKD 25.3 billion record bond issuance
The Hong Kong Mortgage Corporation Limited reported an audited consolidated loss after tax of HKD 109 million for 2025 (2024: HKD 418 million) and an adjusted profit after tax of HKD 1,497 million (2024: HKD 787 million), driven by higher income from placements with the Exchange Fund, increased net interest income, a recovering local property market and revaluation gains on USD exposures. HKMC remained the most active issuer in the domestic HKD corporate bond market, issuing HKD 70.5 billion of corporate debt and a multi-currency benchmark transaction totalling HKD 25.3 billion, while maintaining a capital adequacy ratio of 18.1% and strong solvency ratios at its annuity and insurance subsidiaries.