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The Hong Kong Monetary Authority announced today (May 15) the results of its survey on credit card lending for the first quarter of 2007.
Due to the receding effect of the payment of salary taxes by credit card, total card receivables decreased by 6.3% (or HK$4.5 billion) in the first quarter after rising by 11.8% in the previous quarter. The transfer of some HK$126 million of rescheduled receivables (representing 0.2% of average receivables) outside the credit card portfolio during the quarter also contributed to the decline in total receivables. The total number of credit card accounts rose further by 1.1%.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased to HK$25.1 billion from HK$25.0 billion as at end-December 2006.
The charge-off amount increased further in the first quarter to HK$0.55 billion or 0.79% of average receivables from HK$0.54 billion in the previous quarter. The annualised* charge-off ratio rose to 3.17% from 3.13% in the previous quarter.
The delinquent amount decreased to HK$262 million at the end of March compared with HK$269 million at the end of the previous quarter. However, the delinquency ratio increased to 0.39% from 0.37% at the end of December due to a faster contraction in total card receivables. Similarly, the combined delinquent and rescheduled ratio increased to 0.46%** at end-March from 0.44% at end-December, although the amount of rescheduled receivables declined to HK$51 million from HK$52 million.
* This assumes the quarterly rate of charge-off is maintained for the next three quarters.
** Not the sum of the two ratios, due to rounding.
For further enquiries, please contact:
Sara Yip, Manager (Press), at 2878 8246 or
Peggy Lo, Manager (Press), at 2878 1687
Ends/Tuesday, May 15, 2007
Issued at HKT 18:28
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