The Hong Kong Mortgage Corporation Limited's unaudited consolidated profit after tax for the first half of the year was HK$3 billion, a significant year-on-year increase.

On 26 October, The Hong Kong Mortgage Corporation Limited (HKMC) announced its 2026 interim results. The financial summary shows that the unaudited consolidated profit after tax for the first half of 2026 was HK$3 billion, a significant increase compared with HK$53.3 million for the first half of 2025. The substantial increase in profit was mainly attributable to: (1) the rebound in the property market in the first half of 2026, which led to a reversal of the accounting losses of the reverse mortgage business; (2) the narrowing of the accounting losses of the annuity business, mainly because the annuity optimisation and premium discount initiatives launched in 2024 brought spillover effects that increased losses in 2025, while the decrease in the number of new policies issued in the first half of 2026 narrowed the losses of the annuity business; and (3) the expansion of the investment scale and the rise in investment return, which increased income from Exchange Fund deposits. To better reflect core financial performance, after excluding the financial results of HKMC Annuity Limited, the impact of property price changes on the long-term reverse mortgage business, and the consolidated financial accounting adjustments made for the loan portfolios provided with insurance protection by HKMC Insurance Limited, the adjusted profit after tax for the first half of 2026 was HK$1.083 billion, compared with HK$874 million for the same period in 2025; the annualised return on equity was 7.2%, compared with 6.2% for the same period in 2025; and the cost-to-income ratio was 11.7%, compared with 14.2% for the same period in 2025. As at 30 June 2026, the embedded value of the annuity business calculated on the basis of the Insurance Ordinance was approximately HK$30.1 billion, comprising total equity of HK$27.7 billion and the present value of expected future profits of HK$2.4 billion. In terms of capital adequacy ratio, after excluding the cost of investments in regulated subsidiaries not consolidated, the capital adequacy ratio of the HKMC as at 30 June 2026 was 18.6%, compared with 18.1% as at 31 December 2025, far above the minimum requirement of 8% stipulated by the Financial Secretary. The solvency ratios of HKMC Annuity Limited and HKMC Insurance Limited as at 30 June 2026, calculated under the risk-based capital regime, were approximately 2.4 times and 4.4 times respectively, compared with 2.0 times and 3.9 times respectively as at 31 December 2025, far above the statutory minimum requirements stipulated by the Insurance Authority. The HKMC said that, given the uncertain market environment, it has adopted a prudent pre-funding strategy and proactively maintained communication with the local and international investment communities on bond issuance to support loan purchases and meet refinancing needs. With its strong financing capability and robust capital and liquidity levels, the company's core business remains flexible and resilient, and it is fully prepared to cope with financial turbulence in order to execute its strategic policy role and achieve social objectives.