The Hong Kong Monetary Authority (HKMA) yesterday reported that total card receivables in the country declined by 6.7 percent to HK$110.1 billion (US$14.2 billion) in the first quarter of this year. The total number of credit card accounts however maintained at around 16.7 million.
The rollover amount, which reflects the amount of borrowing by customers using their credit cards, decreased by 1.2 percent during the quarter to HK$18.4 billion (US$2.4 billion). Due to a sharper decline in total card receivables, the rollover ratio rose by 0.9 percent to 16.7 percent in the same period.
The charge-off amount increased from HK$522 million (US$67.3 million) to HK$528 million (US$68.1 million). However, the quarterly charge-off ratio remained at 0.46 percent.
The amount of rescheduled receivables transferred outside the surveyed institutions' credit card portfolios marginally increased by HK$1 million (US$129,000) to HK$109 million (US$14.6 million).
Even though the delinquent amount was maintained at HK$239 million (US$30.8 million) at end-March 2014, the delinquency ratio rose slightly to 0.22 percent from 0.20 percent at end-December 2013 due to the sharper decline in total card receivables. The combined delinquent and rescheduled ratio, after taking into account the transfer of rescheduled receivables mentioned above, also edged up to 0.28 percent from 0.27 percent at end-December 2013.
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