The Mortgage Corporation achieved a record profit after tax of $682.7 million last year, with the return on shareholder's equity strong at 13.9% and a cost-to-income ratio of 13.5%.

In its annual report, Chairman of the Board of Directors Henry Tang said this year will be pivotal for the corporation as it seeks to expand new lines of business.

"The long-term strategy for the corporation will help to maintain the viability and ability of the corporation to provide liquidity to the banks when necessary and also position the corporation as a market leader that can share its expertise and contribute to market development in the region, thereby reinforcing Hong Kong's position as an international financial centre."

Performance highlights

Last year, its capital-to-assets ratio remained at 11.2%, well above the minimum requirement of 5%. For the third consecutive year, the corporation declared a dividend of $250 million or 12.5 cents per share, representing 36.6% of the profit after tax.

It purchased $6.4-billion worth of financial assets, including $1 billion in residential mortgage loans, $4 billion in non-residential mortgage loans and $1.4 billion in non-mortgage assets.

The corporation provided mortgage insurance coverage for newly originated mortgage loans totalling $9.2 billion, achieving a market penetration of 13.3%.