**********************************************************
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 second quarter of 2011.
Total card receivables increased by 3.9% to HK$87.0 billion in the second quarter of 2011, after decreasing 4.4% in the first quarter of 2011. The total number of credit card accounts increased by 2.2% to 14.5 million.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, rose by 0.3% during the quarter.
The charge-off amount slightly increased by 0.3% in the second quarter of 2011 to HK$334 million (or around 0.4% of average receivables) at end-June 2011. The quarterly annualised* charge-off ratio remained relatively stable at 1.57% compared with 1.55% in the previous quarter.
The amount of rescheduled receivables transferred outside the surveyed institutions' credit card portfolios decreased to HK$75 million from HK$88 million in the previous quarter.
The delinquent amount rose to HK$176 million at end-June 2011 from HK$162 million at end-March 2011. Correspondingly, the delinquency ratio grew to 0.20% from 0.19% at end-March 2011. 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, August 15, 2011
Issued at HKT 18:20
NNNN