HKMA Reports 2.1% Drop in Credit Card Receivables for Q2 2026

The Hong Kong Monetary Authority (HKMA) released its credit card lending survey for the second quarter of 2026, revealing that total credit card receivables fell by 2.1% to HK$154.6 billion as of end-June. This marks a moderation compared to the 3.8% decline recorded in the first quarter, when receivables dropped to HK$158.0 billion at end-March 2026.

Credit quality metrics showed marginal changes. The combined delinquent and rescheduled loan ratio improved slightly to 0.42%, down from 0.45% in Q1. However, the charge-off ratio—a measure of bad debts written off—increased to 0.61% from 0.56% in the previous quarter, signaling some stress in consumer repayment capacity.

This decline in total receivables comes after a sharp 8.7% increase in Q4 2025, which the HKMA attributed to seasonal spending during the holidays and year-end tax payments. Over the following quarters, the data suggests consumer credit activity has softened, alongside incremental deterioration in credit quality.

Despite the dip in receivables, broader credit card usage in Hong Kong remains robust. As of Q1 2026, there were 29.18 million credit cards in circulation, a 7.0% increase from the previous quarter and 33.4% higher year-on-year. Total transaction volume reached HK$311.3 billion during the first quarter, indicating continued reliance on credit card payments for both discretionary and essential spending.

The Q2 lending report underscores a cautious trend in consumer credit. While the drop in receivables reflects lower borrowing demand, the uptick in charge-off ratios highlights challenges in maintaining credit quality. For banks operating in Hong Kong, the stability of delinquency rates provides some reassurance, but the modest rise in bad debts could warrant closer monitoring.

Looking ahead, the third quarter’s data will be critical to assessing whether this decline in receivables stabilizes or deepens. Seasonal factors, such as mid-year sales or tourism trends, may also influence credit card spending and repayment behavior.

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