Credit Card Lending Survey Results for Second Quarter 2011

The Hong Kong Monetary Authority announced the results of the survey on credit card lending for the second quarter of 2011.

Total card receivables increased by 3.9% to HK$87.0 billion in the second quarter of 2011, after decreasing 4.4% in the first quarter of 2011. The total number of credit card accounts increased by 2.2% to 14.5 million.

The rollover amount, which reflects the amount of borrowing by customers using their credit cards, rose by 0.3% during the quarter.

The charge-off amount slightly increased by 0.3% in the second quarter of 2011 to HK$334 million (or around 0.4% of average receivables) at end-June 2011. The quarterly annualised1 charge-off ratio remained relatively stable at 1.57% compared with 1.55% in the previous quarter.

The amount of rescheduled receivables transferred outside the surveyed institutions’ credit card portfolios decreased to HK$75 million from HK$88 million in the previous quarter.

The delinquent amount rose to HK$176 million at end-June 2011 from HK$162 million at end-March 2011. Correspondingly, the delinquency ratio grew to 0.20% from 0.19% at end-March 2011. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) remained at 0.28%.

Annex

Hong Kong Monetary Authority
15 August 2011

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