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The Hong Kong Monetary Authority (HKMA) announced today (May 16) the results of its survey on credit card lending for the first quarter of 2006.
Total card receivables decreased by 9.9% (or HK$6.7 billion) in the first quarter after rising by 14.6% in the previous quarter. The decrease reflects the receding effect of the payment of salary taxes by credit card as well as the transfer of some HK$77 million of rescheduled receivables (representing 0.1% of average receivables) outside the credit card portfolio during the quarter. Meanwhile, the total number of credit card accounts rose further by 1.2%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, rose for the second consecutive quarter to HK$24.9 billion from HK$24.6 billion as at end-December 2005.
The charge-off amount increased in the first quarter to HK$0.47 billion or 0.72% of average receivables, compared with HK$0.43 billion or 0.68% in the previous quarter. The increase was mainly attributable to an increase in bankruptcy petitions during the quarter, particularly in March. As a result, the annualised* charge-off ratio increased to 2.89% from 2.72% in the previous quarter.
Despite a decrease in the delinquent amount to HK$248 million, the delinquency ratio increased to 0.40% from 0.37% at the end of December due to the contraction in total card receivables. Similarly, the combined delinquent and rescheduled ratio increased to 0.50% at end-March from 0.45% at end-December, although the amount of rescheduled receivables declined further to HK$56 million from HK$60 million. Rescheduled receivables as a percentage of total receivables remained unchanged at 0.09%.
* 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
Thomas Chan, Senior Manager (Press), at 2878 1480
Ends/Tuesday, May 16, 2006
Issued at HKT 16:32
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