Ted Hisokawa
Sep 26, 2025 17:37
The Hong Kong Mortgage Corporation Limited (HKMC) announced robust interim results for 2025, highlighting significant growth in profit after tax and strategic financial initiatives.
The Hong Kong Mortgage Corporation Limited (HKMC) has revealed its interim financial results for the first half of 2025, showcasing a significant increase in profit after tax (PAT) and highlighting strategic initiatives that bolster its market position. According to the Hong Kong Monetary Authority, the unaudited consolidated PAT for this period reached HK$53.3 million, a notable rise from HK$9 million in the first half of 2024.
Business Highlights
The HKMC’s core missions remain the promotion of banking sector stability, wider home ownership, local debt market development, and retirement planning market growth. Despite a challenging economic environment, the HKMC continues to contribute significantly to Hong Kong’s economy.
Asset Purchase and Debt Issuance
In the first half of 2025, the HKMC acquired HK$2.7 billion in loan assets, a decrease from HK$6.7 billion in the same period last year. Additionally, it purchased HK$46 million in loans under the Dedicated 100% Loan Guarantee Schemes. The outstanding balance of the loan portfolio was HK$85.6 billion by June 2025.
The HKMC also remained active in the debt market, issuing HK$23.3 billion in corporate debts, including a significant issuance of 30-year bonds worth HK$500 million to enhance the fixed-rate reverse mortgage business. The outstanding balance of debt securities was HK$135.6 billion at the end of June 2025.
Mortgage Insurance and SME Financing
The Mortgage Insurance Programme facilitated HK$17.5 billion in new loans, aiding approximately 239,000 families in home purchases since its inception. The SME Financing Guarantee Scheme approved over 28,500 and 16,800 applications for its 80% and 90% Guarantee Products, respectively, supporting numerous local SMEs and their employees.
Financial Performance and Strategy
The HKMC’s financial strategies have yielded favorable outcomes, with increased income from Exchange Fund placements and foreign exchange gains. However, these were somewhat offset by accounting losses in the annuity business due to an increase in new policy issuances. Excluding specific accounting adjustments, the adjusted PAT was HK$874 million, with an annualized return on equity of 6.2%.
The corporation maintained a solid Capital Adequacy Ratio of 18.7%, surpassing the 8% minimum requirement, demonstrating its robust financial health and capability to navigate market uncertainties. The solvency ratios of its subsidiaries also exceeded regulatory requirements, attesting to the strength of its annuity and insurance operations.
The HKMC’s strategic financial management and proactive engagement with investment communities underpin its resilience and readiness to fulfill its strategic and social objectives amid potential market challenges.
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