Bank upbeat on card risk
Wing Hang Bank expects the loan-loss ratio for its credit-card receivables portfolio to remain steady at 4 per cent this year as it expects Hong Kong's economy to start turning around in the second half.
Senior manager for the bank's credit-card centre, Arthur Chan Cheuk-yu, said the bank was adopting a more active approach to managing credit risk through its risk-management department.
The 4 per cent target delinquency ratio for the bank and the sector is virtually unchanged from last year. Mr Chan said he did not see any decline in credit quality in the first two months.
Wing Hang expects its credit-card receivables portfolio to grow 40 per cent this year, after a staggering increase of about 60 per cent last year.
The bank yesterday launched an affinity card programme with a medical services company, MediNet Services.
The company expects about 30,000 out of its 80,000 members to apply for the card in the first year.