The Hong Kong Monetary Authority (HKMA) announced today (Wednesday) the results of its survey on credit card lending for the second quarter of 2006.
Total card receivables increased by 2.5% (or HK$1.6 billion) in the second quarter, having fallen by 9.9% in the previous quarter. The increase occurred notwithstanding the transfer of some HK$87 million of rescheduled receivables (representing 0.1% of average receivables) outside the credit card portfolio during the quarter. The total number of credit card accounts rose further by 4.0%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, was stable at HK$24.9 billion as at end-June 2006.
The charge-off amount increased further in the second quarter to HK$0.51 billion or 0.82% of average receivables, compared with HK$0.47 billion or 0.72% in the previous quarter. The increase was largely due to write-offs in relation to bankruptcy petitions during the quarter. As a result, the annualised1 charge-off ratio increased to 3.28% from 2.89% in the previous quarter.
Although the delinquent amount increased to HK$251 million at the end of June, the delinquency ratio was broadly unchanged at 0.40% due to the increase in total card receivables. The level of rescheduled receivables retained in the card portfolio was stable, amounting to HK$56 million or 0.09% of total receivables. The combined delinquent and rescheduled ratio edged down to 0.49% at end-June from 0.50 at end-March.
For further enquiries, please contact:
Ying-ying Cheng, Manager (Press), at 2878 1687 or
Hing-Fung Wong, Officer (Press), at 2878 1802
Hong Kong Monetary Authority
16 August 2006
1 This assumes the quarterly rate of charge-off is maintained for the next three quarters.