The Hong Kong Mortgage Corporation Limited

Net interest income

785,946

617,961

396,909

Loss for the year

(108,892)

(418,040)

(259,502)

Loan purchases¹

7,032,172

9,047,668

27,561,675

Debts issuance²

61,150,799

88,418,112

89,876,034

Net premiums written

 – General insurance  businesses

849,365

892,202

1,663,021

 – Annuity business

8,999,267

4,358,642

1,606,402

Loan portfolio, net

78,614,028

95,496,673

109,499,818

Total assets

252,425,482

221,826,176

219,302,809

Debt securities issued

155,169,330

148,299,636

161,718,497

Insurance contract liabilities, net³

 – General insurance businesses

5,073,163

4,935,503

4,230,925

 – Annuity businesses

30,370,820

19,028,704

14,383,877

Total equity

27,126,956

Net interest margin

0.5%

0.4%

0.2%

Cost-to-income ratio

264.9%

(232.9)%

(471.0)%

Return on equity

(0.2)%

(1.5)%

(1.0)%

Capital adequacy ratio

18.1%

19.9%

21.6%

Solvency Ratio⁴

Notes:

1. Including the purchase of loans with the Special 100% Loan Guarantee under the SME Financing Guarantee Scheme and the Dedicated 100% Loan Guarantee Scheme amounted to HK$381 million fully guaranteed by the Government for 2025 (2024: HK$5.2 billion and 2023: HK$24.7 billion).

2. For debts with tenor of one year or above.

3. Representing insurance liabilities from insurance and reinsurance contracts issued, net of insurance assets from reinsurance contracts held.

4. Solvency ratios are calculated in accordance with Insurance (Valuation and Capital) Rules (Cap. 41R) under the Risk-based Capital regime with effect from 1 July 2024. Solvency ratios for 2023 were prepared in accordance with the requirements of the former Insurance Ordinance.

5. For better assessment and comparison of financial performance,

— Adjusted profit for the year, cost-to-income ratio and return on equity are computed after excluding (a) the accounting results of the annuity business; (b) the impact of property price change on the insurance result of the Reverse Mortgage Programme; and (c) the effects of accounting adjustments in respect of the Group’s loan portfolio with insurance cover provided by the HKMC Insurance Limited at consolidation level.

— Adjusted net interest margin is calculated after excluding the impact of the purchase of loans with the Special 100% Guarantee under the SME Financing Guarantee Scheme and the Dedicated 100% Loan Guarantee Scheme (since April 2023) under which the Group only recovered the funding costs without any net interest margin earned.