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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority announced today (August 15) the results of its survey on credit card lending for the second quarter of 2008.
Total card receivables increased by 1.6% (or HK$1.2 billion) in the second quarter, after declining by 6.0% in the previous quarter. The transfer of rescheduled receivables outside the surveyed institutions¡¦ credit card portfolios during the quarter dropped slightly to HK$153 million from HK$155 million in the first quarter. The total number of credit card accounts increased by 2.5%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, declined further to HK$23.7 billion from HK$24.4 billion as at the end of March.
The charge-off amount increased in the second quarter to HK$506 million, or 0.70% of average receivables, from HK$499 million in the previous quarter. The quarterly annualised* charge-off ratio rose to 2.78% from 2.68% in the previous quarter.
The delinquent amount edged slightly lower to HK$232 million at the end of June compared with HK$234 million at the end of the previous quarter. The delinquency ratio remained unchanged at 0.32%. The combined delinquent and rescheduled ratio (after taking into account the transfer mentioned above) declined to a record low of 0.39% at the end of June.
*This assumes the quarterly rate of charge-off is maintained for the next three quarters.
For further enquiries, please contact:
Hing-fung Wong, Manager (Press), at 2878 1802 or
Lilian Goh, Officer (Press), at 2878 8246
Ends/Friday, August 15, 2008
Issued at HKT 16:31
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