The Hong Kong Monetary Authority published highlights of The Hong Kong Mortgage Corporation Limited’s interim results for the first half of 2025, covering loan purchases, debt issuance and performance of mortgage insurance, SME guarantees and retirement planning products. The HKMC reported unaudited consolidated profit after tax of HKD 53.3 million (first half of 2024: HKD 9 million), alongside HKD 2.7 billion of loan-asset acquisitions and HKD 23.3 billion of corporate debt issuance. Higher profitability was attributed mainly to increased income from placements with the Exchange Fund, foreign exchange gains, higher net interest income, and a smaller negative impact from property price movements on the reverse mortgage business, partly offset by larger annuity insurance accounting losses linked to higher new policy volumes. At 30 June 2025, the loan portfolio was HKD 85.6 billion and debt securities outstanding were HKD 135.6 billion; credit ratings remained AA+ (S&P Global Ratings) and Aa3 (Moody’s), matching those of the Hong Kong Special Administrative Region Government. Debt issuance for the half included HKD 500 million of 30-year bonds intended to support the fixed-rate reverse mortgage business and local debt market development. New Mortgage Insurance Programme loans drawn down totalled HKD 17.5 billion, while cumulative approvals under the SME Financing Guarantee Scheme exceeded 28,500 (80% guarantee), 16,800 (90% guarantee) and 67,100 (special 100% loan guarantee), with the special 100% guarantee application period having expired at end-March 2024; the travel and cross-boundary passenger transport Dedicated 100% Loan Guarantee Schemes expired in October 2024. The annuity business wrote 11,531 policies for total premiums of HKD 5.4 billion and reported embedded value of about HKD 21.6 billion, and 488 reverse mortgage applications were approved with an average monthly payout of HKD 9,800; the HKMC reported an adjusted profit after tax of HKD 874 million, a capital adequacy ratio of 18.7% and annuity and general insurance solvency ratios of about 2.2x and 3.7x.
Hong Kong Monetary Authority 2025-09-26
Hong Kong Monetary Authority publishes Hong Kong Mortgage Corporation interim 2025 results showing HKD 53.3 million profit after tax and HKD 23.3 billion debt issuance
The Hong Kong Monetary Authority released highlights of The Hong Kong Mortgage Corporation Limited’s interim results for H1 2025, noting a significant increase in unaudited consolidated profit after tax to HKD 53.3 million from HKD 9 million in H1 2024. Key drivers included increased income from placements with the Exchange Fund, foreign exchange gains, and higher net interest income. The HKMC's loan portfolio was HKD 85.6 billion, with debt securities at HKD 135.6 billion, maintaining credit ratings of AA+ and Aa3.