HKMC records $362m loss in 2020
This was a drop from the $317m profit in 2019.
The Hong Kong Mortgage Corporation Limited (HKMC) has reported its audited loss after tax amounted to $362m in 2020, down from a profit of $317m in the previous year.
This was linked to increases in commission expenses under the Mortgage Insurance Program (MIP), an increase in accounting loss of the HKMC Annuity Limited, and the unfavourable impact of investment revaluation.
New loans under the MIP increased to $98b from $33.3b in 2019. Net MIP earned was $398m, up from $334m.
“The net upfront commission expenses surged to $666 million (2019: HK$138 million) amid the significant increase in new loans underwritten,” the HKMC reported.
Net interest income over the same period declined to $488m from $524m in the previous year.
Total expenses, meanwhile, rose by $35m to $515m as the HKMC directed more resources in developing and implementing new business and policy initiatives, such as the Special 100% loan guarantee scheme.
“The HKMC continues to maintain stringent controls on operating expenses,” the report read.
As of December 2020, more than 25,000 applications under the Special 100% Loan Guarantee scheme have been approved. It has a total loan amount of $39.7b, of which $37.6b were purchased by the HKMC.