Key Information

Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Guidelines and Circulars

Press Releases

Credit Card Lending Survey Results For Fourth Quarter 2004

The Hong Kong Monetary Authority (HKMA) announced today (Thursday) the results of its survey on credit card lending for the fourth quarter of 2004.

The charge-off amount continued its declining trend in the fourth quarter, declining to HK$0.53 billion or 0.94% of average receivables, from HK$0.61 billion or 1.13% in the previous quarter. The "annualised"1 ratio further declined, from 4.51% to 3.76%, which was the lowest level since the second quarter of 2001.

The delinquency ratio fell to its lowest level since the start of the survey in 1996, reaching 0.44% at end-December 2004. The amount of rescheduled receivables decreased to HK$70 million or 0.12% of total receivables, from HK$73 million or 0.14% in the previous quarter. Together, the delinquent and rescheduled ratio declined further to 0.55% at end-December from 0.68% at end-September.

The total number of credit card accounts rose further by 1.7%. Despite the transfer of some HK$96.4 million of rescheduled receivables (representing 0.2% of average receivables) outside the credit card portfolio during the quarter, total receivables rose by 9.2% (or HK$5 billion), having risen 1.0% in the third quarter.

The rollover amount, which reflects the amount of "borrowing" by customers using their credit cards, declined further to HK$24.4 billion from HK$25.0 billion as at end-September 2004.

For further enquiries, please contact:
Kevin Ip, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
17 February 2005

1 This assumes the quarterly rate of charge-off is maintained for the next three quarters.


Survey on Credit Card Lending

  Q4 03Q1 04Q2 04Q3 04Q4 04
Total number of accounts at period-end ('000) 8,784 8,805 8,933 9,119 9,276
Quarterly change (%) +0.4 +0.2 +1.5 +2.1 +1.7
Yearly change (%) -0.9 +0.0 +2.3 +4.3 +5.6
Total receivables at period-end (HK$ Mn) 56,305 53,639 53,707 54,249 59,256
Quarterly change (%) +4.3 -4.7 +0.1 +1.0 +9.2
Yearly change (%) -5.0 -1.7 -0.5 +0.5 +5.2


Average total receivables (HK$ Mn) 1 ( a ) 55,140 54,972 53,673 53,978 56,753


Delinquent amount > 90 days (HK$ Mn) 519 421 343 300 259
Rescheduled card receivables (HK$ Mn)( b ) 166 178 73 73 70


Delinquency ratio (%) 0.92 0.78 0.64 0.55 0.44
Rescheduled ratio (%) ( c = b / a ) 0.29 0.33 0.14 0.14 0.12


Charge-off amount (HK$ Mn)2 ( d ) 1,129 871 721 608 534
Charge-off ratios3
- quarterly % ( e = d / a ) 2.05 1.58 1.34 1.13 0.94
- quarterly %, annualised 8.19 6.34 5.37 4.51 3.76
- year-to-date %, annualised 10.02 6.34 5.79 5.31 4.73


Rollover amount (HK$ Mn) 27,759 26,996 26,027 24,980 24,385
Rollover ratio (%) 49.3 50.3 48.5 46.0 41.2



  1. Average during period (calculated as [opening stock + closing stock]/2 )
  2. Flow during period
  3. Calculated as flow during period as percentage of average receivables during period


Survey on the Banking Sector's Credit Card Lending

Notes to Press Release

  1. This survey covers authorized institutions (AIs) and some subsidiaries of AIs that are engaged in credit card business. It does not cover card issuers that are not AI-related.
  2. Credit card receivables in the survey refer to credit card receivables from individual credit cardholders.
  3. The  delinquency ratio is measured by the total amount of credit card receivables overdue for more than 90 days and remaining unpaid at the last day of the reporting month as a percentage of total credit card receivables. Credit card receivables are classified as overdue when a payment is past due on the last day of the reporting month (see also Note 7 below). The delinquency ratio provides an early indication of the quality of the credit card portfolio.
  4. Charge-off amount refers to the total amount of credit card receivables written off the loan book during a period (irrespective of when a charge is made to the profit and loss account, which may be earlier if it is the institution's policy to create provisions at an earlier time than the amount is written off). Charge-off policies vary from institution to institution. Normally, an account will be written off when the receivable has been overdue for more than 180 days or when the ultimate repayment of the receivable is unlikely (e.g. the cardholder is bankrupt or cannot be located).

    The quarterly annualised ratio foreshadows the extent of charge-offs that would be experienced if the current quarter's charge-off ratio were to be sustained for the next three quarters. The year-to-date ratio tracks the actual charge-offs to date and is annualised for purposes of comparison.
  5. The delinquency and the charge-off ratios are complementary to each other. The former takes into account those credit card receivables that at the reporting date had been overdue for more than 90 days but had not yet been written off. It is therefore an indicator of future charge-offs. The latter captures those receivables that were written off during the specified period because they were seriously overdue (e.g. for more than 180 days) plus those written off earlier than 180 days because they were considered irrecoverable (e.g. because the borrower has gone into bankruptcy).
  6. The rescheduled ratio is measured by the amount of rescheduled receivables retained in the card portfolio which are not captured as delinquent at period-end as a percentage of total receivables. This ratio provides supplementary information on the quality of the credit card receivables.
  7. Rollover amount, representing "borrowing", is the amount within total receivables in respect of which the cardholder has not fully repaid the statement balance but has at least made the minimum amount of payment required by the authorized institution. It does not include amounts that are overdue. An account is overdue when the minimum payment is not made upon the due date.
  8. Rollover ratio refers to the percentage of total rollover amounts to total credit card receivables. While total receivables relate to the month-end position, total rollover amounts are based on balances recorded at the statement date.
Last revision date: 1 August 2011
Tender Invitations
Legislative Council Issues
The HKMA Information Centre
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
Press Releases
Guidelines & Circulars
Forthcoming Events
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery