HKMC’s Financial Results Highlights for 2023

The Hong Kong Mortgage Corporation Limited (HKMC) announced its audited consolidated financial results for 2023. The company reported a loss after tax of HK$260 million, primarily due to increased insurance contract liabilities for the annuity business driven by lower market interest rates, as well as the negative impact of property price drops on the reverse mortgage insurance business. However, excluding the annuity business and property price impacts, the HKMC’s adjusted profit after tax was HK$724 million, with a return on equity of 5.3% and a cost-to-income ratio of 28.1%. The HKMC remained in a strong financial position, with a capital adequacy ratio of 21.6% and solvency ratios for its insurance subsidiaries well above regulatory requirements. The company continued its prudent debt issuance strategy and maintained a resilient core operation, facilitating loan purchases, mortgage insurance, SME financing guarantees, reverse mortgages, and annuity products despite uncertain market conditions. Key business highlights included infrastructure loan securitization, record debt issuance, and steady performance across various financing schemes. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/06/20240603-3/