Hong Kong Credit Card Receivables Slightly Decline in Q3 2024

The Hong Kong Monetary Authority (HKMA) has released its credit card lending survey results for the third quarter of 2024, revealing a slight decline in total card receivables. According to the report, credit card receivables decreased by 0.6% during this period, reaching HK$150.3 billion by the end of September 2024. This follows a smaller decrease of 0.2% in the previous quarter.

Delinquency and Charge-off Ratios

The combined delinquent and rescheduled ratio increased slightly, reaching 0.40% at the end of September, compared to 0.39% at the end of the previous quarter. Despite this increase, the quarterly charge-off ratio remained steady at 0.58%, indicating stability in the rate of debt written off as uncollectible.

Market Context

The slight decline in credit card receivables may reflect broader economic conditions, as consumers continue to navigate the post-pandemic financial landscape. The stability in charge-off ratios suggests that while some consumers are struggling, overall credit card debt remains manageable for most.

Implications for the Financial Sector

The findings of the HKMA report hold implications for financial institutions in Hong Kong, potentially influencing lending practices and credit assessments. As the economic environment evolves, banks and financial institutions may need to adjust their strategies to mitigate risks associated with credit card lending.

For more details, visit the Hong Kong Monetary Authority.

Image source: Shutterstock