Banker projects bad loans will gradually decline over next 12 months

Stanley Au

Nonperforming loans in Macau climbed to 5.0% of total gross loans in the first quarter of 2025, rising from 3.9% a year earlier, according to the Monetary Authority of Macao (AMCM).

This rise represents an increase of nearly 28% over the past year.

The quarterly data indicates a steady upward trend in nonperforming loans through 2024, starting at 3.9% in Q1 2024, rising to 4.2% in Q2, 4.8% in Q3, and 5.2% in Q4, before easing slightly to 5.0% in the first quarter of 2025.

Stanley Au, chairman of Delta Asia Financial Group and founder and chairman of the Macau Small & Medium Enterprises Association, expressed guarded optimism about the situation while speaking to TDM yesterday, predicting that the nonperforming loan ratio would decline gradually over the next six to 12 months.

Au pointed to the positive impact of a series of domestic economic stimulus measures launched by mainland China, which are intended to invigorate the local economy.

“Our country is currently making great efforts to introduce many measures to stimulate the domestic economy. If the domestic economy can thrive, there will be some changes in Hong Kong’s economy, helping to stabilize prices at least,” he said.

Despite these developments, Au cautioned that external pressures are likely to slow Macau’s economy in the second half of the year.

He emphasized the need for further policies to boost domestic demand and consumption, as well as greater efforts to attract high-spending tourists. NS