Timothy Morano
Aug 17, 2026 10:31
HKMA’s Q2 2026 bank card lending information reveals a 2.1% decline in receivables to HK$154.6B, with charge-off and delinquency ratios remaining steady.
The Hong Kong Financial Authority (HKMA) launched its bank card lending survey for the second quarter of 2026, revealing that whole bank card receivables fell by 2.1% to HK$154.6 billion as of end-June. This marks a moderation in comparison with the three.8% decline recorded within the first quarter, when receivables dropped to HK$158.0 billion at end-March 2026.
Credit score high quality metrics confirmed marginal adjustments. The mixed delinquent and rescheduled mortgage ratio improved barely to 0.42%, down from 0.45% in Q1. Nevertheless, the charge-off ratio—a measure of unhealthy money owed written off—elevated to 0.61% from 0.56% within the earlier quarter, signaling some stress in client compensation capability.
This decline in whole receivables comes after a pointy 8.7% improve in This autumn 2025, which the HKMA attributed to seasonal spending throughout the holidays and year-end tax funds. Over the next quarters, the information suggests client credit score exercise has softened, alongside incremental deterioration in credit score high quality.
Regardless of the dip in receivables, broader bank card utilization in Hong Kong stays strong. As of Q1 2026, there have been 29.18 million bank cards in circulation, a 7.0% improve from the earlier quarter and 33.4% larger year-on-year. Whole transaction quantity reached HK$311.3 billion throughout the first quarter, indicating continued reliance on bank card funds for each discretionary and important spending.
The Q2 lending report underscores a cautious pattern in client credit score. Whereas the drop in receivables displays decrease borrowing demand, the uptick in charge-off ratios highlights challenges in sustaining credit score high quality. For banks working in Hong Kong, the soundness of delinquency charges offers some reassurance, however the modest rise in unhealthy money owed might warrant nearer monitoring.
Wanting forward, the third quarter’s information will probably be crucial to assessing whether or not this decline in receivables stabilizes or deepens. Seasonal components, akin to mid-year gross sales or tourism traits, can also affect bank card spending and compensation habits.
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