Improving economic and labour market conditions have upgraded the asset quality of Hong Kong's credit card portfolio, with the amount charged off in January to March falling for the sixth consecutive quarter to $870 million or 1.58% of average receivables.

Announcing results of its credit card lending survey today, the Monetary Authority said the annualised ratio was 6.34% compared with 8.19% in the previous quarter, the lowest level since the third quarter of 2001. The delinquency ratio also fell to a three-year low of 0.78%.

The authority's Deputy Chief Executive William Ryback said banks' efforts in helping their customers reschedule card receivables continued to be steady and appears to be paying off.

Outstanding rescheduled card receivables within the card portfolio surged to $178 million, representing 0.33% of total receivables. Together, the delinquent and rescheduled ratio stood at 1.12%, down from 1.22% at end of last year.

The total number of credit card accounts went up by 0.2%. Total receivables, however, fell 4.7% after rising 4.3% in the previous quarter. The fall reflects the receding effect of the payment of salary tax using credit cards as well as the transfer of some $168 million rescheduled receivables representing 0.3% of average receivables outside the credit card portfolio during the quarter.

The rollover amount, which reflects the amount of borrowing customers using their credit cards, fell for the eighth consecutive quarter to $27 billion.