The HKMC 2024 Financial Results: A Year of Challenges and Strategic Resilience

By Darius Baruo
Publication Date: May 26, 2025

As the global economy fluctuates, the Hong Kong Mortgage Corporation Limited (HKMC) stands as a beacon of stability in the financial landscape. Their recently released 2024 financial results reveal a compelling narrative of growth amid adversity. At Extreme Investor Network, we delve deeper into these results to extract valuable insights you won’t find elsewhere.

Business Highlights: Growth Amid Complexity

In 2024, the HKMC demonstrated its commitment to economic stability by acquiring HK$3.9 billion in loan assets—a significant leap from HK$2.8 billion in the previous year. This growth shows their strategic agility in navigating a complex economic environment. The corporation’s commitments under the SME Financing Guarantee Scheme (SFGS) also saw expansion, with purchases totaling HK$5.1 billion. Furthermore, the Dedicated 100% Loan Guarantee Schemes (DLGS) represented a modest yet crucial acquisition of HK$52 million. Notably, the HKMC issued US$423.3 million in infrastructure loan-backed securities, showcasing a diversified approach that can attract a variety of investors.

Key Takeaway:

For investors looking at asset allocation, the HKMC offers a model of adaptability. Their diverse portfolio mitigates risks while providing opportunities for both stability and growth.

Debt Issuance and Credit Ratings: Cementing Authority

In an impressive display of market confidence, the HKMC issued HK$103.5 billion in corporate debts in 2024—slightly up from HK$98.3 billion the year before. Included in this were HK$12 billion in multi-tenor HKD benchmark bonds, establishing a record for the largest HKD senior unsecured public bond transaction during the issuance. The corporation’s credit ratings remain robust, with an AA+ from S&P Global Ratings and Aa3 from Moody’s. These ratings align closely with the Hong Kong SAR Government’s, further emphasizing HKMC’s stature as a safe investment choice.

Unique Insight:

Understanding the bond market is crucial for investors, and the HKMC’s successful issuance is indicative of broader market health. This is a strong signal for potential investors to remain engaged, particularly in the current economic climate.

Mortgage and Loan Programs: Fostering Home Ownership

The HKMC’s Mortgage Insurance Programme (MIP) was pivotal in facilitating HK$47.9 billion in new loans, with an impressive 56% secured on secondary market properties. Since its inception in 1999, the MIP has supported approximately 235,000 families with a total loan drawdown of HK$869.8 billion. Additionally, more than 27,400 applications were approved under the SME Financing Guarantee Scheme, amounting to HK$118.4 billion in loans.

Why This Matters:

For potential homeowners and small business owners, programs like these not only foster economic resilience but also represent avenues for individual empowerment through home ownership and enterprise support.

Financial Performance: Navigating Loss to Profit

Despite a consolidated loss after tax of HK$418 million, up from a HK$260 million loss the previous year, the corporation recorded an adjusted profit after tax of HK$787 million. This figure excludes impacts from the annuity business and market volatility in reverse mortgages. Notably, the HKMC’s capital adequacy ratio remains strong at 19.9%, significantly above the minimum requirement of 8%.

Key Insight:

This financial resilience is critical for investors who prioritize long-term stability over short-term fluctuations. HKMC’s ability to adjust and recover illustrates a strong foundational strategy in financial management.

Strategic Outlook: Prepared to Navigate Challenges

Looking ahead, the HKMC emphasizes prudent prefunding strategies and strong communication with investment communities. Their focus on developing retirement planning markets aligns with core social objectives, showcasing their commitment to supporting Hong Kong’s economic fabric.

Final Thoughts:

For investors keen on stability in turbulent times, the HKMC presents a compelling case. Their ability to adapt and thrive in a complex landscape not only showcases resilience but also reflects a commitment to fostering economic growth and home ownership in Hong Kong.

For a deeper dive into these findings, and to grasp how they could impact your investment strategy, be sure to check out the full 2024 Annual Report available on the HKMC’s official website.

At Extreme Investor Network, we believe in bringing you comprehensive insights that empower your investment choices. Join us as we navigate these intriguing financial waters together!

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