The Hong Kong Mortgage Corporation Limited

Net interest income

617,961

396,909

355,891

(Loss)/ profit for the year²

(418,040)

(259,502)

2,162,750

Loan purchases³

9,047,668

27,561,675

37,710,170

Debts issuance⁴

88,418,112

89,876,034

71,765,425

Net premiums  written

 – General insurance  businesses

892,202

1,663,021

2,211,270

 – Annuity business

4,358,642

1,606,402

2,528,733

 Loan portfolio, net

95,496,673

109,499,818

102,186,811

 Debt securities issued

148,299,636

161,718,497

131,075,272

 Risk-in-force

 – Mortgage insurance⁵

103,300,086

108,112,016

99,117,659

 – Reverse mortgage  insurance⁶

21,389,135

18,594,126

16,276,063

Net interest margin⁷

0.4%

0.2%

0.2%

Cost-to-income  ratio²

(232.9)%

(471.0)%

9.7%

Return on equity²

(1.5)%

(1.0)%

10.0%

Capital adequacy ratio

19.9%

21.6%

27.9%

Notes:

1. From 1 January 2023, the Group has adopted Hong Kong Financial Reporting Standard 17 “Insurance Contracts” (HKFRS 17). As required by the accounting standard, the Group applied the requirements retrospectively with comparative figures previously published under Hong Kong Financial Reporting Standard 4 “Insurance Contracts” restated from 1 January 2022, the transition date

2. For comparison purposes, after adjustments to exclude (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 consolidation adjustments after adoption of HKFRS 17 in respect of the Group’s loan portfolio with insurance cover provided by the HKMC Insurance Limited, the adjusted profit for the year, return on equity and cost-to-income ratio for 2024 would be HK$787 million, 4.8% and 27.6% respectively (2023: HK$724 million, 5.3% and 28.1% respectively; and 2022 restated: HK$445 million, 3.2% and 34.5% respectively).

3. Including the purchase of loans with the Special 100% Loan Guarantee under the SME Financial Guarantee Scheme and the Dedicated 100% Loan Guarantee Scheme amounted to HK$5.2 billion fully guaranteed by the Government for 2024 (2023: HK$24.7 billion and 2022: HK$33.4 billion).

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

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

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

7. For comparison purposes, after excluding the impact of the purchase of loans with the Special 100% Guarantee under the SME Financial 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, the adjusted net interest margin would be 0.8% (2023: 0.5% and 2022: 0.5%).