The Hong Kong Monetary Authority announced the results of the survey on credit card lending for the third quarter of 2010.
Total card receivables grew by 5.0% to HK$78.2 billion in the third quarter of 2010, after increasing 4.1% in the second quarter. The total number of credit card accounts increased by 2.9% to 13.4 million.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, fell by 1.4% to HK$19.3 billion at end-September 2010.
The charge-off amount declined to HK$366 million, or around 0.5% of average receivables, in the third quarter of 2010 from HK$422 million in the previous quarter. The quarterly annualised1 charge-off ratio correspondingly fell to 1.92% from 2.31% in the previous quarter. The transfer of rescheduled receivables outside the surveyed institutions' credit card portfolios decreased to HK$144 million from HK$165 million in the previous quarter.
The delinquent amount decreased to HK$171 million at end-September 2010 from HK$189 million at end-June 2010, resulting in a decline of the delinquency ratio to 0.22% from 0.25%. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) declined to 0.32% at end-September 2010 from 0.38% at end-June 2010.
For media enquiries, please contact:
Peggy Lo, Manager (Communications), at 2878 1687 or
Natalie Wu, Officer (Communications), at 2878 8246
Hong Kong Monetary Authority
15 November 2010
1 This assumes the quarterly rate of charge-off is maintained for the next three quarters.