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The Hong Kong Monetary Authority (HKMA) announced today (February 15) the results of its survey on credit card lending for the fourth quarter of 2006.
Total card receivables rose by 11.8% (or HK$7.6 billion) in the fourth quarter, despite a transfer of HK$110 million of rescheduled receivables (representing 0.2% of average receivables) outside the credit card portfolio during the quarter. The increase was largely due to the payment of salary tax using credit cards and festive spending in December. The total number of credit card accounts rose further by 0.8%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased to HK$25.0 billion from HK$24.9 billion as at the end of September 2006.
The charge-off amount increased in the fourth quarter to HK$0.54 billion or 0.78% of average receivables from HK$0.53 billion in the previous quarter. The increase was mainly attributable to an increase in bankruptcy related charge-offs during the quarter, particularly in November. However, the annualised* charge-off ratio dropped to 3.13% from 3.30% in the previous quarter due to the strong growth in total card receivables.
Notwithstanding an increase in the delinquent amount to HK$269 million at the end of December, the delinquency ratio declined to 0.37% due to the increase in total card receivables. The amount of rescheduled receivables retained in the card portfolio decreased to HK$52 million or 0.07% of total receivables, from HK$55 million or 0.08% in the third quarter. The combined delinquent and rescheduled ratio declined to 0.44% from 0.49% at the end of September.
* This assumes the quarterly rate of charge-off is maintained for the next three quarters.
For further enquiries, please contact:
Ying-ying Cheng, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Ends/Thursday, February 15, 2007
Issued at HKT 16:48
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