Credit Card Lending Survey Results For Third Quarter 2008

Press Releases

21 Nov 2008

Credit Card Lending Survey Results For Third Quarter 2008

The Hong Kong Monetary Authority announced today (Friday) the results of its survey on credit card lending for the third quarter of 2008.

Total card receivables increased by 0.8% (or HK$0.6 billion) in the third quarter, after rising 1.6% in the previous quarter. The transfer of rescheduled receivables outside the surveyed institutions' credit card portfolios during the quarter dropped to HK$144 million from HK$153 million in the second quarter. The total number of credit card accounts increased by 1.0%.

The rollover amount, which reflects the amount of borrowing by customers using their credit cards, rose to HK$23.9 billion from HK$23.7 billion as at the end of June.

The charge-off amount declined in the third quarter to HK$505 million, or 0.69% of average receivables, from HK$506 million in the previous quarter. The quarterly annualised1 charge-off ratio dropped to 2.74% from 2.78% in the previous quarter.

The delinquent amount declined to HK$227 million at the end of September compared with HK$232 million at the end of the previous quarter. The delinquency ratio declined to a record low of 0.31%. The combined delinquent and rescheduled ratio (after taking into account the transfer mentioned above) declined to a record low of 0.38%2 at the end of September.

Annex

For further enquiries, please contact:
Thomas Chan, Communications Chief, at 2878 1480 or
Hing-fung Wong, Manager (Communications), at 2878 1802

Hong Kong Monetary Authority
21 November 2008


1 This assumes the quarterly rate of charge-off is maintained for the next three quarters.
2 Not the sum of the delinquency ratio and the rescheduled ratio due to rounding.

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Last revision date : 21 November 2008