Hong Kong Credit Card Lending Declines in Q1 2025, Says HKMA

The Hong Kong Monetary Authority (HKMA) has released its credit card lending survey results for the first quarter of 2025, revealing a notable decline in credit card lending. According to the HKMA, total card receivables dropped by 5.8% to HK$152.8 billion by the end of March 2025. This downturn follows a significant increase of 7.9% in the previous quarter, driven largely by festive spending and salaries tax payments.

Fluctuating Economic Indicators

The report highlights an increase in the combined delinquent and rescheduled ratio, which rose to 0.42% at the end of March 2025 from 0.40% in the previous quarter. Additionally, the quarterly charge-off ratio saw a slight rise to 0.61% from 0.57% in the last quarter of 2024. Despite these increases, the charge-off ratio remains relatively low, indicating a stable credit environment.

Contextual Economic Factors

This decline in credit card lending could be influenced by various economic factors, including consumer spending patterns and fiscal policies. The previous quarter's growth was attributed to seasonal spending, suggesting that such fluctuations may be typical in the Hong Kong credit market. Furthermore, the slight rise in delinquency and charge-off ratios might reflect cautious consumer behavior amid potential economic uncertainties.

For further details, the HKMA's official announcement can be accessed on their website.