HKMC announced 2025 annual results on 21 April 2026, reporting a loss after tax of HK$109 million and adjusted profit of HK$1,497 million, with key business highlights including HK$6.9 billion loan assets acquired and HK$70.5 billion debt issued.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On Tue, 21 Apr, The Hong Kong Mortgage Corporation Limited ("HKMC") announced the highlights of its annual results for 2025.
Business Highlights
In 2025, HKMC and its subsidiaries continued to fulfill core missions and social objectives, contributing to Hong Kong’s economic stability amidst a complex environment. The Corporation’s mandate focuses on promoting banking sector stability, wider home ownership, local debt market development, and the retirement planning market.
Asset Purchase and Securitisation
HKMC acquired HK$6.9 billion of loan assets, alongside HK$158 million under the Dedicated 100% Loan Guarantee Schemes. The Corporation completed the third issuance of infrastructure loan-backed securities, comprising US$450.5 million in US dollar-denominated notes. As of 31 December 2025, the outstanding loan portfolio balance was HK$78.6 billion.
Debt Issuance
Corporate debts totaling HK$70.5 billion were issued, maintaining HKMC’s status as the most active issuer in the domestic HKD corporate bond market. A multi-currency benchmark bond issuance of HK$25.3 billion was completed, including the largest 30-year HKD social bond in Hong Kong, supporting the Reverse Mortgage Programme. Outstanding debt securities balance reached HK$155.2 billion, with credit ratings of AA+ ("S&P") and Aa3 (Moody’s), matching the HKSAR Government.
Mortgage Insurance Programme ("MIP")
New MIP loans drawn down amounted to HK$35.2 billion, with 60% secured on secondary market properties. Since its 1999 launch, the programme has facilitated home purchases for approximately 242,000 families, with an aggregate loan drawdown of HK$905.0 billion.
SME Financing Guarantee Scheme
The 80% Guarantee Product approved over 29,300 applications (HK$125.7 billion), extended to March 2028, while the 90% Guarantee Product approved over 18,600 applications (HK$32.7 billion), expiring March 2026. The Special 100% Loan Guarantee approved over 67,100 applications (HK$143.9 billion), expired March 2024. These products benefited approximately 25,100 SMEs and 409,000 employees (80%/90%) and 40,000 SMEs and 400,000 employees (100%).
Dedicated 100% Loan Guarantee Schemes
Under the DLGS for Travel Sector and Cross-boundary Passenger Transport Trade, 227 applications were approved (HK$0.22 billion), expiring October 2024. For the DLGS for Battery Electric Taxis, over 630 applications were approved (HK$0.21 billion).
Annuity Business
The annuity business accepted over 16,530 policies with premiums of HK$9 billion. Since its 2018 launch, it has assisted approximately 34,000 senior citizens in converting savings into lifelong stable income.
Reverse Mortgage Programme
937 applications were approved with an average property value of HK$4.1 million and an average monthly payout of HK$9,400. Since its 2011 launch, a total of 8,861 applications have been approved.
Financial Highlights
The audited consolidated loss after tax for 2025 was HK$109 million, an improvement from HK$418 million in 2024, driven by increased placement income, annuity premiums, capital injections, and revaluation gains. Adjusted profit after tax was HK$1,497 million, with return on equity at 5.2% and cost-to-income ratio at 19.3%. Embedded value of the annuity business was HK$24.4 billion, comprising HK$21.5 billion equity and HK$2.9 billion present value of future profits.
Capital adequacy remained solid at 18.1% as of 31 December 2025, well above the 8% minimum requirement. Solvency ratios for HKMCA and HKMCI were 2 times and 3.9 times respectively, exceeding regulatory requirements. Shareholder’s equity stood at HK$51.2 billion, cash and short-term funds at HK$64.5 billion, and investment securities at HK$30.1 billion.
Amid uncertain market conditions, HKMC adopted a prudent prefunding strategy and communicated with investment communities to support loan purchases and refinancing. The 2025 Annual Report containing detailed financial results will be published on the HKMC website in due course.
The Hong Kong Mortgage Corporation Limited 21 April 2026 1 A wholly-owned subsidiary of the HKMC that carries on long term insurance business 2 A wholly-owned subsidiary of the HKMC that carries on general insurance business
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