The Hong Kong Monetary Authority announced today (Thursday) the results of its survey on credit card lending for the third quarter of 2007.
Total card receivables increased by 2.2% (or HK$1.5 billion) in the third quarter, after rising by 2.1% in the previous quarter. Rescheduled receivables amounting to HK$139 million were transferred outside the surveyed institutions' credit card portfolio during the quarter, compared with HK$143 million in the second quarter. The total number of credit card accounts rose further by 0.5%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, fell further to HK$24.4 billion from HK$24.9 billion as at end-June 2007.
The charge-off amount decreased in the third quarter to HK$542 million or 0.78% of average receivables from HK$564 million in the previous quarter. The annualised1 charge-off ratio dropped to 3.10% from 3.30% in the previous quarter.
The delinquent amount declined to HK$257 million at the end of September compared with HK$276 million at the end of the previous quarter. The delinquency ratio dropped to 0.36% from 0.40% at the end of June. The combined delinquent and rescheduled ratio (after taking into account the transfer mentioned above) dropped to 0.44%2 at end-September from 0.47% at end-June, although the amount of rescheduled receivables increased to HK$52 million from HK$51 million.
For further enquiries, please contact:
Peggy Lo, Manager (Press), at 2878 1687 or
Hing-fung Wong, Officer (Press), at 2878 1802
Hong Kong Monetary Authority
15 November 2007
1 This assumes the quarterly rate of charge-off is maintained for the next three quarters.