The Hong Kong Monetary Authority (HKMA) announced today (Wednesday) the results of its survey on credit card lending for the first quarter of 2005.
The charge-off amount continued to decline in the first quarter, down to HK$0.46 billion or 0.80% of average receivables, compared with HK$0.53 billion or 0.94% in the previous quarter. The annualised1 charge-off ratio declined further to 3.18% from 3.76% in the previous quarter, the lowest level since the third quarter of 1998.
There was a slight rise in the delinquency ratio to 0.45%, up from 0.44% at end-December. However, this was due, not to an increase in the value of accounts that were delinquent, but rather to a contraction in total card receivables. Similarly, the delinquent and rescheduled ratio increased to 0.57% at end-March from 0.55% at end-December, although the amount of rescheduled receivables declined further to HK$68 million from HK$70 million in the previous quarter. Rescheduled receivables remained constant as a percentage of total receivables at 0.12%.
The decrease in total card receivables reflected seasonal factors, including the receding effect of the payment of salary taxes by credit card. Total card receivables decreased by 4.1% (or HK$2 billion), having risen 9.2% in the previous quarter. In addition, HK$79.6 million of rescheduled receivables (representing 0.1% of average receivables) was transferred outside the credit card portfolio during the quarter. The total number of credit card accounts rose further by 1.3%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased to HK$24.8 billion from HK$24.4 billion as at end-December 2004.
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Kevin Ip, Manager (Press), at 2878 1687
Hong Kong Monetary Authority
18 May 2005
1 This assumes the quarterly rate of charge-off is maintained for the next three quarters.
Annex
Survey on Credit Card Lending
Q1 04 | Q2 04 | Q3 04 | Q4 04 | Q1 05 | |
Total number of accounts at period-end ('000) | 8,805 | 8,933 | 9,119 | 9,276 | 9,396 |
Quarterly change (%) | +0.2 | +1.5 | +2.1 | +1.7 | +1.3 |
Yearly change (%) | +0.0 | +2.3 | +4.3 | +5.6 | +6.7 |
Total receivables at period-end (HK$ Mn) | 53,639 | 53,707 | 54,249 | 59,256 | 56,803 |
Quarterly change (%) | -4.7 | +0.1 | +1.0 | +9.2 | -4.1 |
Yearly change (%) | -1.7 | -0.5 | +0.5 | +5.2 | +5.9 |
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Average total receivables (HK$ Mn) 1 ( a ) | 54,972 | 53,673 | 53,978 | 56,753 | 58,029 |
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Delinquent amount > 90 days (HK$ Mn) | 421 | 343 | 300 | 259 | 253 |
Rescheduled card receivables (HK$ Mn)( b ) | 178 | 73 | 73 | 70 | 68 |
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Delinquency ratio (%) | 0.78 | 0.64 | 0.55 | 0.44 | 0.45 |
Rescheduled ratio (%) ( c = b / a ) | 0.33 | 0.14 | 0.14 | 0.12 | 0.12 |
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Charge-off amount (HK$ Mn)2 ( d ) | 871 | 721 | 608 | 534 | 461 |
Charge-off ratios3 | |||||
- quarterly % ( e = d / a ) | 1.58 | 1.34 | 1.13 | 0.94 | 0.80 |
- quarterly %, annualised | 6.34 | 5.37 | 4.51 | 3.76 | 3.18 |
- year-to-date %, annualised | 6.34 | 5.79 | 5.31 | 4.73 | 3.18 |
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Rollover amount (HK$ Mn) | 26,996 | 26,027 | 24,980 | 24,385 | 24,767 |
Rollover ratio (%) | 50.3 | 48.5 | 46.0 | 41.2 | 43.6 |
Note:
Notes to Press Release