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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 first quarter of 2011.
Total card receivables decreased by 4.4% to HK$83.7 billion in the first quarter of 2011, after increasing 12.0% in the fourth quarter of 2010. The decrease was largely due to the receding effect of festive spending around the year end and the payment of salaries tax using credit cards. The total number of credit card accounts increased by 2.5% to 14.1 million.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, rose by 0.2% at end-March 2011.
The charge-off amount increased by 2.8% in the first quarter of 2011 to HK$333 million (or around 0.4% of average receivables) at end-March 2011. The quarterly annualised* charge-off ratio remained relatively stable at 1.55% compared with 1.56% in the previous quarter.
The amount of rescheduled receivables transferred outside the surveyed institutions' credit card portfolios decreased to HK$88 million from HK$104 million in the previous quarter.
The delinquent amount fell to HK$162 million at end-March 2011 from HK$173 million at end-December 2010. Correspondingly, the delinquency ratio declined to 0.19% from 0.20% at end-December 2010. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) remained at 0.28%.
* This assumes the quarterly rate of charge-off is maintained for the next three quarters.
Ends/Monday, May 16, 2011
Issued at HKT 16:34
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