The Hong Kong Monetary Authority announced today the results of its survey of credit-card lending for the second quarter of 2003.

The amount charged off in the second quarter decreased for the third consecutive quarter to $1.57 billion or 2.9% of average receivables during the quarter. 

Assuming the charge-off rate is maintained for the next three quarters, the annualised ratio would be 11.6% compared with 11.82% in the previous quarter.

The delinquency ratio increased slightly to 1.27% from 1.25%, according to the authority.

"While the quality of the card portfolio will continue to be influenced by the economic situation and bankruptcy trend, the charge-off situation appears to have stabilised," said the authority's Deputy Chief Executive David Carse.

"This partly reflects the precautionary measures taken by the banks, as well as the continuing impact of debt-restructuring arrangements," he added.

The total number of credit-card accounts declined by 0.8%, while the decline in total receivables fell to 1.1%.

Meanwhile, another $198 million or 0.4% of total credit-card receivables was restructured, of which about 68% was transferred outside the credit-card portfolio.

The rollover amount, which reflects the amount of "borrowing" customers using their credit cards, fell for the fifth consecutive quarter to $29 billion from $30.4 billion as of the end of March. It represents 53.8% of total receivables.