*********************************************************
The Hong Kong Monetary Authority (HKMA) announced today (November 15) the results of its survey on credit card lending for the third quarter of 2005.
The charge-off amount decreased in the third quarter to HK$0.43 billion or 0.74% of average receivables, compared with HK$0.47 billion or 0.82% in the previous quarter. Accordingly, the annualised* charge-off ratio declined to 2.95% from 3.27% in the previous quarter, the lowest level since the third quarter of 1998.
The delinquency ratio also declined, to a new low of 0.39% at the end of September. The amount of rescheduled receivables was stable at HK$66 million or 0.11% of total receivables at end-September. The combined delinquent and rescheduled ratio declined to 0.50% at end-September from 0.52% at end-June.
Total card receivables rose for the second consecutive quarter by 4.2% (or HK$2.4 billion) in the third quarter, despite a transfer of HK$68.6 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 also rose further, by 3.0%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, decreased to HK$24.2 billion from HK$24.3 billion as at end-June 2005.
* This assumes the quarterly rate of charge-off is maintained for the next three quarters.
For further enquiries, please contact:
Hing-Fung Wong, Resource Co-ordinator, at 2878 1802 or
Kevin Ip, Manager (Press), at 2878 1687
Ends/Tuesday, November 15, 2005
Issued at HKT 16:31
NNNN
