Group 1: Monetary Supply and Deposits - The broad money supply in Macau increased in May 2025, with M1 rising by 2.4% and M2 increasing by 1.2% to 815.7 billion MOP [1] - Resident deposits rose by 1.3% to 794.7 billion MOP, while non-resident deposits increased by 0.4% to 351.0 billion MOP [2] - The total deposits in the banking system increased by 1.4% to 1,361.7 billion MOP, with the composition of deposits being 19.2% MOP, 47.0% HKD, 8.7% RMB, and 23.4% USD [2] Group 2: Loans - Local private sector loans decreased by 1.4% to 498.5 billion MOP, and external sector loans fell by 7.6% to 495.2 billion MOP [3] - The total private sector loans declined by 4.6% to 993.7 billion MOP, with the currency composition being 22.3% MOP, 43.8% HKD, 8.8% RMB, and 21.8% USD [3] Group 3: Banking Operations - As of the end of May 2025, the loan-to-deposit ratio for local residents dropped to 49.3%, while the overall loan-to-deposit ratio, including non-residents, decreased to 73.0% [4] - The liquidity ratios for one month and three months stood at 65.7% and 57.9%, respectively [4] - The non-performing loan ratio increased to 5.7% due to a decline in total loans [4]

Core Insights - The Hong Kong banking system remains robust with ample capital and liquidity as of Q1 2025 [1][2] - Retail banking operating profit before tax increased by 15.8% year-on-year, driven by growth in foreign exchange and derivative income, as well as fees and commissions [1] - The net interest margin for retail banking narrowed to 1.51% from 1.53% in the same period last year [1] Loan and Deposit Trends - Total loans in the Hong Kong banking sector increased by 0.6% year-on-year, with loans used in Hong Kong and outside Hong Kong rising by 0.8% and 1.1% respectively [1] - Trade financing saw a decline of 4.7% year-on-year [1] - Total deposits increased by 3.5% year-on-year, with Hong Kong dollar deposits and US dollar deposits rising by 5.1% and 1.7% respectively [1] Asset Quality and Liquidity - The specific classified loan ratio in the Hong Kong banking system slightly increased from 1.96% at the end of Q4 2024 to 1.98% at the end of Q1 2025 [2] - The average liquidity coverage ratio for Class 1 institutions was 182.5%, significantly above the 100% regulatory minimum [2] - The total capital ratio for locally registered authorized institutions was 24.2% as of March 2025, well above the 8% international minimum requirement [2]

Monetary Supply - The broad money supply M2 in Macau increased by 1.3% month-on-month to 810.6 billion MOP as of March 2025, with M1 and quasi-monetary liabilities contributing to this growth [1][2] - M1 decreased by 1.8% in circulation but saw a rise of 10.5% in demand deposits, resulting in a month-on-month increase of 6.8% [2] - Year-on-year comparisons show M1 and M2 rising by 11.3% and 8.8% respectively [2] Deposits - Resident deposits rose by 1.3% to 789 billion MOP, while non-resident deposits increased by 9.1% to 360.1 billion MOP [3] - Total deposits in the banking system increased by 3.1% month-on-month to 1,360.2 billion MOP, with the composition of deposits being 19.1% MOP, 47.2% HKD, 7.8% RMB, and 24.0% USD [3] Loans - Local private sector loans decreased by 0.4% to 511.3 billion MOP, with specific sectors like transportation and hospitality seeing slight increases, while wholesale, retail, and construction sectors experienced declines [4] - Total private sector loans fell by 1.9% month-on-month to 1,024.2 billion MOP, with the currency composition being 21.9% MOP, 43.4% HKD, 11.6% RMB, and 20.3% USD [4] Operating Ratios - As of March 2025, the loan-to-deposit ratio for local residents decreased to 51.1% from 51.9% in February, while the overall loan-to-deposit ratio, including non-residents, fell to 75.3% from 79.1% [5] - The ratio of liquid assets to liabilities stood at 69.5% for one month and 56.6% for three months, with a non-performing loan ratio remaining stable at 5.5% [5]