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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 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 the end of 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 annualised* 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 the end of June 2010.
* This assumes the quarterly rate of charge-off is maintained for the next three quarters.
Ends/Monday, November 15, 2010
Issued at HKT 17:16
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