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The Hong Kong Monetary Authority (HKMA) today (February 15) announced the results of its survey on credit card lending for the fourth quarter of 2005.
Total card receivables rose notably by 14.6% (or HK$8.7 billion) in the fourth quarter, despite a transfer of HK$72 million of rescheduled receivables (representing 0.1% of average receivables) outside the credit card portfolio during the quarter. The increase is believed to be attributable to a combination of payment of salary taxes by credit card and increased spending during the festive month in December. The total number of credit card accounts also rose further, by 2.5%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased to HK$24.6 billion from HK$24.2 billion as at end-September 2005.
The charge-off amount was little changed in the fourth quarter at about HK$0.43 billion or 0.68% of average receivables, compared with 0.74% in the previous quarter. The annualised* charge-off ratio declined to 2.72% from 2.95% in the previous quarter.
Notwithstanding an increase in the delinquent amount to HK$250 million, the delinquency ratio declined to a new low of 0.37% at the end of December on the back of the rapid growth in total card receivables. The amount of rescheduled receivables decreased to HK$60 million or 0.09% of total receivables, from HK$66 million or 0.11% in the third quarter. The combined delinquent and rescheduled ratio declined further to 0.45% at end-December from 0.50% at end-September.
* This assumes the quarterly rate of charge-off is maintained for the next three quarters
For further enquiries, please contact:
Kevin Ip, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Ends/Wednesday, February 15, 2006
Issued at HKT 16:31
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