In the final quarter of 2024, the financial landscape in Hong Kong witnessed a significant rebound in credit card lending activities. After experiencing a modest decline in the third quarter, receivables surged by 7.9%, reaching HK$162.2 billion. This uptick marks a reversal from the previous quarter's downturn and underscores a growing confidence among consumers towards the end of the year. Despite the higher volume of transactions, the stability in the delinquent and rescheduled ratio at 0.40% suggests that credit quality remained robust, only marginally increasing from the second quarter.

Further analysis reveals consistent performance across key metrics. The charge-off ratio maintained its steady pace at 0.57%, reflecting stable levels of write-offs throughout the year. Interestingly, the rollover ratio, which tracks borrowing behavior where cardholders make minimum payments, saw a slight decrease to 16.9% in Q4, down from 17.7% in the preceding quarter. Although the amount rolled over increased to HK$27.35 billion, this trend indicates a more cautious approach by consumers in managing their debts.

The recovery in credit card usage signifies a positive shift in consumer spending habits and financial health. As economic conditions improve, it is essential for financial institutions to continue promoting responsible borrowing practices. By fostering an environment of transparency and education, stakeholders can ensure sustainable growth and resilience in the credit market. This period of stability and growth presents an opportunity for businesses to strengthen their partnerships and drive forward innovative solutions for both consumers and the broader economy.