Tony Kim
Could 15, 2026 09:19
HKMA Q1 2026 survey exhibits bank card receivables drop to HK$158B, whereas delinquency ratio edges increased. Seasonal components stay key drivers.
The Hong Kong Financial Authority (HKMA) launched its bank card lending survey outcomes for Q1 2026, revealing a 3.8% decline in complete card receivables to HK$158.0 billion as of March 31. This marks a reversal from the 8.7% surge recorded in This fall 2025, which was pushed by festive spending and salaries tax funds.
Delinquency and rescheduling charges ticked up barely, with the mixed ratio rising to 0.45% on the finish of March, in comparison with 0.40% within the prior quarter. Nevertheless, asset high quality confirmed resilience, because the charge-off ratio improved to 0.56% from 0.62% in This fall 2025, signaling fewer write-offs in the course of the interval.
Seasonal Volatility in Focus
The decline in receivables aligns with historic patterns, the place balances sometimes contract after the spending-heavy fourth quarter. An analogous development was noticed in Q1 2025, when receivables fell 5.8% quarter-on-quarter to HK$152.8 billion. Seasonal components, together with post-holiday spending slowdowns and diminished shopper exercise, stay a dominant affect on bank card debt ranges in Hong Kong.
Regardless of the quarterly drop, the Q1 2026 bank card receivable determine of HK$158.0 billion nonetheless represents year-over-year progress from HK$152.8 billion on the identical level in 2025. This alerts a gentle growth in shopper credit score utilization, underpinned by a rise within the variety of energetic playing cards and better transaction volumes reported in prior quarters.
Client Credit score Well being Stays Steady
Asset high quality metrics point out continued stability in Hong Kong’s bank card lending market. The mixed delinquent and rescheduled ratio of 0.45% stays close to historic lows, whereas the charge-off ratio has trended downward during the last two quarters, reflecting higher restoration or reimbursement circumstances.
By comparability, the delinquency ratio was additionally 0.45% on the finish of Q2 and Q3 2025 however dipped to 0.40% in This fall 2025 amid improved seasonal reimbursement conduct. The charge-off ratio, which peaked at 0.64% in mid-2025, has since moderated, suggesting lenders are navigating credit score danger successfully regardless of a unstable macroeconomic atmosphere.
What to Watch Subsequent
Trying forward, the HKMA’s subsequent bank card lending survey for Q2 2026 will make clear whether or not the market rebounds in step with historic patterns, as Q2 usually captures a restoration in spending momentum. Moreover, broader financial circumstances, together with rate of interest tendencies and shopper confidence, will play a essential function in shaping credit score dynamics for the rest of the yr.
Picture supply: Shutterstock
