Hong Kong Q1 2026 Credit Card Receivables Down 3.8%, HKMA Reports

The Hong Kong Monetary Authority (HKMA) released its credit card lending survey results for Q1 2026, revealing a 3.8% decline in total card receivables to HK$158.0 billion as of March 31. This marks a reversal from the 8.7% surge recorded in Q4 2025, which was driven by festive spending and salaries tax payments.

Delinquency and rescheduling rates ticked up slightly, with the combined ratio rising to 0.45% at the end of March, compared to 0.40% in the prior quarter. However, asset quality showed resilience, as the charge-off ratio improved to 0.56% from 0.62% in Q4 2025, signaling fewer write-offs during the period.

Seasonal Volatility in Focus

The decline in receivables aligns with historical patterns, where balances typically contract after the spending-heavy fourth quarter. A similar trend was observed in Q1 2025, when receivables fell 5.8% quarter-on-quarter to HK$152.8 billion. Seasonal factors, including post-holiday spending slowdowns and reduced consumer activity, remain a dominant influence on credit card debt levels in Hong Kong.

Despite the quarterly drop, the Q1 2026 credit card receivable figure of HK$158.0 billion still represents year-over-year growth from HK$152.8 billion at the same point in 2025. This signals a steady expansion in consumer credit usage, underpinned by an increase in the number of active cards and higher transaction volumes reported in prior quarters.

Consumer Credit Health Remains Stable

Asset quality metrics indicate continued stability in Hong Kong's credit card lending market. The combined delinquent and rescheduled ratio of 0.45% remains near historical lows, while the charge-off ratio has trended downward over the last two quarters, reflecting better recovery or repayment conditions.

By comparison, the delinquency ratio was also 0.45% at the end of Q2 and Q3 2025 but dipped to 0.40% in Q4 2025 amid improved seasonal repayment behavior. The charge-off ratio, which peaked at 0.64% in mid-2025, has since moderated, suggesting lenders are navigating credit risk effectively despite a volatile macroeconomic environment.

What to Watch Next

Looking ahead, the HKMA's next credit card lending survey for Q2 2026 will shed light on whether the market rebounds in line with historical patterns, as Q2 often captures a recovery in spending momentum. Additionally, broader economic conditions, including interest rate trends and consumer confidence, will play a critical role in shaping credit dynamics for the remainder of the year.