The Hong Kong Mortgage Corporation Limited

Net interest income

454,888

487,726

523,991

Profit/(loss) for the year¹

831,098

(362,124)

317,461

Loan purchases²

46,023,469

38,924,070

1,876,551

Debts issuance³

84,165,144

29,356,467

17,724,508

Net premiums  written

 – General insurance  businesses

2,839,155

1,841,392

466,215

 – Annuity business

3,003,443

2,537,928

1,630,827

 Loan portfolio, net

79,633,967

43,141,592

6,928,045

 Debt securities  issued

115,652,967

61,909,148

39,710,963

 Risk-in-force

 – Mortgage insurance⁴

80,571,512

47,602,099

23,075,987

 – Reverse mortgage  insurance⁵

14,037,405

12,335,756

11,239,454

 Net interest margin⁶

0.4%

0.8%

1.0%

 Capital adequacy ratio

23.4%

37.3%

30.2%

 Cost-to-income  ratio¹

35.3%

640.8%

58.7%

 Return on equity¹

5.1%

(2.4%)

2.1%

Notes:

1. For comparison purposes, after (i) adjusting for amortisation impact of upfront commissions to banks arising from significant surge in the volume of new mortgage insurance underwritten to match with premium income being recognised over the loan life; and (ii) excluding the financial results of annuity business, the adjusted profit for the year, return on equity and cost-to-income ratio for 2021 would be HK$868 million, 7.3% and 25.2% respectively (2020: HK$376 million, 3.5% and 44.8% respectively; and 2019 after excluding the accounting loss of HKMC Annuity Limited: HK$443 million, 4.2% and 41.8% respectively).

2. Including the purchase of loans with the Special 100% Guarantee under the SME Financial Guarantee Scheme amounted to HK$42.9 billion fully guaranteed by the Government for 2021 (2020: HK$37.6 billion and 2019: Nil).

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

4. The risk-in-force excludes exposure that has been covered by quota-share reinsurance arrangement.

5. The risk-in-force includes the outstanding balance and undrawn commitment of a reverse mortgage loan, excluding exposure that has been covered by quota-share reinsurance arrangement. Undrawn commitment refers to the amount of expected future payout to the borrower based on the payment term.

6. For comparison purposes, after excluding the impact of the purchase of loans with the Special 100% Guarantee under the SME Financial Guarantee Scheme under which the Group only recovered the funding costs without any net interest margin earned, the adjusted net interest margin would be 0.8% (2020: 1.0% and 2019: not applicable).