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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority announced the results of the survey on credit card lending for the second quarter of 2010.
Total card receivables stood at HK$74.5 billion at the end of June 2010, representing a quarterly increase of 4.1% (or HK$2.9 billion). The total number of credit card accounts increased by 2.9% to 13.1 million.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, fell by 3.5% to HK$19.6 billion at the end of June 2010.
The charge-off amount declined to HK$422 million, or around 0.6% of average receivables, in the second quarter of 2010 from HK$439 million in the previous quarter. The quarterly annualised (Note) charge-off ratio also declined to 2.31% from 2.39% in the previous quarter. The transfer of rescheduled receivables outside the surveyed institutions' credit card portfolios decreased to HK$165 million from HK$209 million in the previous quarter.
The delinquent amount decreased to HK$189 million at end-June 2010 compared with HK$232 million at end-March 2010. The delinquency ratio correspondingly dropped to 0.25% from 0.32% at end-March 2010. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) declined to 0.38% at end-June 2010 from 0.45% at end-March 2010.
Note: This assumes the quarterly rate of charge-off is maintained for the next three quarters.
Ends/Monday, August 16, 2010
Issued at HKT 16:48
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