The Hong Kong Mortgage Corporation Limited

 Net interest income

487,726

523,991

536,209

(Loss)/profit for the year

(362,124)⁴

317,461⁴

126,558⁴

 Loan purchases

38,924,070⁵

1,876,551

287,705

 Debts issuance¹

29,356,467

17,724,508

12,424,465

 Net premiums  written

 – General insurance  businesses

1,841,392

466,215

565,739

 – Annuity business

2,537,928

1,630,827

2,780,240

 Loan portfolio, net

43,141,592

6,928,045

6,442,064

 Debt securities  issued

61,909,148

39,710,963

37,292,877

 Risk-in-force

 – Mortgage insurance²

47,602,099

23,075,987

19,723,956

 – Reverse mortgage  insurance³

12,335,756

11,239,454

9,644,152

 Net interest margin

0.8%

1.0%

1.1%

 Capital adequacy ratio

37.3%

30.2%

26.8%

 Cost-to-income  ratio

640.8%⁴

58.7%⁴

86.0%⁴

 Return on equity

(2.4%)⁴

2.1%⁴

0.9%

Notes:

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

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

3. 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.

4. 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 in 2020 to match with premium income being recognised over the loan life; and (ii) excluding an accounting loss for maintaining prudent statutory reserves based on actuarial assumptions for annuity business made by the HKMC Annuity Limited, a wholly-owned subsidiary of the HKMC, the adjusted profit for the year, return on equity and cost-to-income ratio for 2020 would be HK$376 million, 3.5% and 44.8% respectively (2019: HK$443 million, 4.2% and 41.8% respectively; and 2018: HK$515 million, 5.1% and 36.7% respectively, after excluding an accounting loss of HKMC Annuity Limited).

5. Including the purchase of loans with the Special 100% Loan Guarantee under the SME Financial Guarantee Scheme amounted to HK$37.6 billion fully guaranteed by the Government.