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					    Report on Credit Card Statistics, 1st Half of 2008


                         Research and Statistics Department
                           Monetary Authority of Macao




1. Composition of Credit Cards in Circulation

The total number of credit cards in circulation reached 348,928 at the end of June
2008, up 2.6% from the previous quarter or 9.1% from a year earlier. By currency,
Pataca (MOP) cards remained the dominant type. The number of MOP cards reached
274,922 at end-June 2008, accounting for 78.8% of the total number of cards in
circulation. Meanwhile, the numbers of Hong Kong Dollar (HKD) cards and
Renminbi (CNY) cards were 66,012 and 7,991 (Chart 1).


CNY cards registered the fastest year-on-year growth of 14.5% in the first half of
2008, while MOP cards and HKD cards also rose 10.3% and 3.6% respectively (Table
1). As illustrated in Table 1, CNY cards registered the fastest growth of 4.3% in the
second quarter of 2008. MOP cards increased 2.8% while HKD cards went up by
1.6%.




                                        - 35 -
 Report on Credit Card Statistics, 1st Half of 2008



                         Chart 1: Number of Credit Cards in Circulation,
                                        End-June 2008


  274,922




                                                                                                                                     66,012



                                                                                                     3   7,991


                      MOP Cards                  HKD Cards                      CNY Cards                         Other Currency
                                                                                                                  Cards




                          Table 1: Number of Credit Cards in Circulation
                                                                                           Percentage    Percentage   Percentage   Percentage
                        End-March   End-June   End-Sept   End-Dec   End-March   End-June
                                                                                            Change        Change       Change       Change
                         2007 (1)    2007(2)    2007(3)   2007(4)    2008(5)    2008 (6)
                                                                                           (%)(2)/(1)    (%)(5)/(4)   (%)(6)/(5)   (%)(6)/(2)

 (a) Primary Cards       284,012    293,938    299,416    305,490    312,361     320,449      3.5            2.2          2.6          9.0
    -MOP Cards           221,785    230,575    235,484    240,676    247,288     254,153      4.0            2.7          2.8         10.2
    -HKD Cards            55,674     56,518    56,892      57,717     57,602      58,549      1.5           -0.2          1.6          3.6
    -RMB Cards             6,551     6,843      7,038      7,095      7,469       7,745       4.5            5.3          3.7         13.2
    -OFC Cards               2         2          2          2          2           2         0.0            0.0         0.0          0.0
 (b) Supplementary        25,232     25,897    26,500      27,066     27,682      28,479      2.6            2.3          2.9         10.0
    -MOP Cards            18,010     18,567    19,090      19,603     20,142      20,769      3.1            2.7          3.1         11.9
    -HKD Cards             7,112     7,192      7,255      7,298      7,347       7,463       1.1            0.7          1.6          3.8
    -RMB Cards              109       137        154        164        192         246        25.7          17.1         28.1         79.6
    -OFC Cards               1         1          1          1          1           1         0.0            0.0         0.0          0.0
  (c)=(a)+(b) Total
                         309,244    319,835    325,916    332,556    340,043     348,928      3.4           2.3          2.6          9.1
  Number of Cards
    -MOP Cards           239,795    249,142    254,574    260,279    267,430     274,922      3.9            2.7         2.8          10.3
    -HKD Cards            62,786     63,710    64,147      65,015     64,949      66,012      1.5           -0.1         1.6           3.6
    -RMB Cards             6,660     6,980      7,192      7,259      7,661       7,991       4.8            5.5         4.3          14.5
    -OFC Cards               3         3          3          3          3           3         0.0            0.0         0.0          0.0




As at the end of June 2008, the number of primary cards amounted to 320,449,
representing an increase of 9.0% year-on-year. Within this total, MOP primary cards
increased 10.2% while HKD and CNY primary cards registered respective growth of
3.6% and 13.2%.                    Their absolute numbers reached 254,153, 58,549 and 7,745
respectively. Compared with a quarter earlier, MOP, HKD and CNY primary cards
rose 2.8%, 1.6% and 3.7% respectively.




                                                              - 36 -
                                                                     Report on Credit Card Statistics, 1st Half of 2008


Primary cards made up 91.8% of all credit cards circulating in Macao at the end of
June 2008. The remainder was supplementary cards, which reached 28,479 in number
at end-June 2008.




2. Financial Analysis of Credit Card Lending


The financial status of credit card lending by banks in Macao is depicted in Table 2.


                                            Table 2: Credit Card Lending

                                                                                                   Percentage   Percentage   Percentage
                    2007 Q1     2007 Q2     2007 H1     2008 Q1            2008 Q2     2008 H1      Change       Change       Change
                       (1)         (2)         (3)         (4)               (5)          (6)         (%)          (%)          (%)
                                                                                                     (2)/(1)      (5)/(4)      (5)/(2)
(a) Credit limit
                    5,394,977   5,579,886   5,579,886   6,028,288          6,294,373   6,294,373       3.4          4.4         12.8
    granted*


(b) Credit card
                    798,643     839,005     839,005      900,019            922,887    922,887         5.1          2.5         10.0
 receivables*


   (c)=(b)/(a)
Utilisation rate*     14.8        15.0        15.0        14.9               14.7        14.7          0.2+        -0.3+        -0.3+
       (%)
  (d) Rollover
                    368,856     369,098     369,098      402,992            406,954    406,954         0.1          1.0         10.3
    amount*
   (e)=(d)/(b)
Rollover ratio*       46.2        44.0        44.0        44.8               44.1        44.1         -2.2+        -0.7+         0.1+
       (%)
(f) Credit card
                    1,140,467   1,143,291   2,283,758   1,453,723          1,440,297   2,894,020       0.2         -0.9         26.0
    turnover
    (g) Cash
    advance          96,217     106,368     202,585      118,774            126,906    245,680        10.6          6.8         19.3
    turnover
(h)=(g)/(f) Cash
   advance to
   credit card         8.4         9.3        8.9          8.2                8.8        8.5           0.9+         0.6+        -0.5+
 turnover ratio
       (%)

(i) Repayments      1,215,721   1,162,525   2,378,246   1,552,440          1,436,282   2,988,722      -4.4         -7.5         23.5

 (j) Delinquent
                      3,687       3,112       3,112       3,050              2,715       2,715        -15.6        -11.0       -12.8
     amount*
    (k)=(j)/(b)
  Delinquency         0.46        0.37        0.37        0.34               0.29        0.29        -0.09+       -0.04+       -0.08+
    ratio* (%)




Notes: (i) *Period end figures.
       (ii) Unit in thousand patacas except for ratios.
      (iii) +Change in percentage point.


At the end of June 2008, credit card credit limit granted by banks in Macao reached
MOP6.3 billion, equivalent to an increase of 12.8% year-on-year or 4.4% quarter-to-
quarter. Meanwhile, credit card receivables (including purchases and cash advances)




                                                                  - 37 -
 Report on Credit Card Statistics, 1st Half of 2008


amounted to MOP0.9 billion, 10.0% up from last year. An utilisation rate of 14.7%
was recorded, down 0.3 percentage points from the same period last year.


For the first half of 2008, the credit card turnover reached MOP2.9 billion; of which
cash advance turnover accounted for 8.5%. Credit card repayments moved in line
with credit card turnover, amounting to MOP3.0 billion in the first six months of 2008.
In the second quarter of 2008, the credit card turnover exceeded MOP1.4 billion, up
26.0% compared with the same period last year. The cash advance turnover, an
indicator of cardholders’ financial stress, occupied 8.8% of the total credit card
turnover, 0.6 percentage points higher than the 8.2% registered in the previous quarter.
In the meantime, credit card repayments decreased 7.5% from the previous quarter to
MOP1.4 billion.


The rollover amount, which represents borrowing by cardholders and a significant
source of interest income for banks from credit card lending, reached MOP0.4 billion
at the end of June 2008. The rollover amount edged up by 1.0% from three months
ago and made up 44.1% of credit card receivables.


As at the end of June 2008, the delinquent amount totaled MOP2.7 million.
Compared with the same period last year, the delinquency ratio slid slightly by 0.08
percentage points to 0.29%, revealing that about 0.29% of credit card loans were
granted to cardholders who did not make their minimum repayments for 90 days or
more.




3. Household Consumption and Credit


As shown in Table 3, the proportion of credit card turnover to household final
consumption expenditure stood at 15.4% in the first half of 2008. In the second
quarter of 2008, the credit card turnover to household final consumption expenditure
ratio dropped 1.3 percentage points from the previous quarter to 14.8% attributed to a
1.6% decrease in credit card turnover but a gain of 6.8% in household final
consumption expenditure.




                                                 - 38 -
                                                                                      Report on Credit Card Statistics, 1st Half of 2008




            Table 3: Private Consumption versus Consumption by Credit Card

                                                                                                                 Percentage   Percentage       Percentage   Percentage
                  2007 Q1       2007 Q2     2007H1           2008 Q1        2008 Q2            2008H1
                                                                                                                 Change (%)   Change (%)       Change (%)   Change (%)
                    (1)           (2)         (3)              (4)            (5)                (6)
                                                                                                                   (4)/(1)      (5)/(2)          (6)/(3)      (5)/(4)


(a) Household
     final                                                                              **                  **
                  7,113,620     7,647,974   14,761,594       8,293,388      8,853,527          17,146,915           16.6         15.8             16.2          6.8
 consumption
  expenditure

(b) Credit card
                  1,044,250     1,036,923   2,081,173        1,334,949      1,313,391          2,648,340            27.8         26.7             27.3         -1.6
   turnover*

   (c)=(b)/(a)
  Credit card
  turnover to
   household
                    14.7          13.6         14.1            16.1           14.8                15.4              1.4+         1.2+             1.3+         -1.3+
      final
 consumption
  expenditure
    ratio (%)



Notes: (i) * Excluding cash advances; ** Preliminary figure.
       (ii) Unit in thousand patacas except for ratios.
       (iii) Data of household consumption expenditure at current prices are from Statistics and
            Census Service (DSEC).
      (iv) +Change in percentage point.


        Table 4: Domestic Credit to Individuals for Purposes Other Than House
                                      Purchases
                                                                                                                 Percentage      Percentage              Percentage
                              End-March        End-June               End-March              End-June
                                                                                                                 Change (%)      Change (%)              Change (%)
                               2007 (1)         2007 (2)               2008 (3)               2008 (4)
                                                                                                                   (2)/(1)         (4)/(3)                 (4)/(2)



(a) Domestic credit
 to individuals for
                              5,411,256         5,777,785                6,331,982           7,360,493               6.8                16.2                27.4
purposes other than
 house purchases

   (b) Credit card
                               798,643           839,005                 900,019              922,887                5.1                 2.5                10.0
     receivables

  (c)=(b)/(a) Credit
card receivables as a
    percentage of
 domestic credit to              14.8                 14.5                 14.2                12.5                 -0.3+               -1.7+               -2.0+
   individuals for
purposes other than
house purchases (%)



Notes: (i)Unit in thousand patacas except for ratios.
       (ii) +Change in percentage point.


As indicated in Table 4, the credit card lending as a percentage of the domestic credit
to individuals for purposes other than house purchases was 12.5% at end-June 2008.
It was 2.0 percentage points lower than the comparable ratio a year ago. The credit
card lending saw a year-on-year growth of 10.0%, compared with a considerable



                                                                              - 39 -
 Report on Credit Card Statistics, 1st Half of 2008


27.4% increase for the domestic credit to individuals for purposes other than house
purchases.



4. Credit Card Transactions in Macao

The number of Macao merchants accepting credit card payments totalled 5,718 at
end-June 2008, representing a year-on-year increase of 25.8%. Compared with end-
March 2008, it went up by 3.8%. Credit card is a well-accepted means of payments
worldwide. The local merchant turnover, including purchases with local and foreign
credit cards, amounted to MOP9.7 billion in the second quarter of 2008, up 4.9%
quarter-to-quarter. For the first half of 2008, the local merchant turnover totaled
MOP19.0 billion.


In the second quarter of 2008, the average turnover per merchant surged 1.0% from
the previous quarter to MOP1.7 million. For the first six months of 2008, the local
merchant turnover and average turnover per merchant grew 57.6% and 25.3%
respectively compared with the same period last year.

                                       Table 5: Local Merchant Turnovers
                                                                                               Percentage   Percentage   Percentage
                     2007 Q1     2007 Q2     2007 H1      2008 Q1     2008 Q2     2008 H1       Change       Change       Change
                       (1)         (2)          (3)         (4)         (5)         (6)            (%)          (%)          (%)
                                                                                                 (2)/(1)      (5)/(4)      (6)/(3)

  (a) Number of
 local merchants
                      4,691       4,546        4,546       5,510       5,718        5,718         -3.1         3.8          25.8
 accepting credit
      cards*
      #
    (b) Local
     merchant
                     6,013,525   6,043,183   12,056,708   9,278,560   9,728,598   19,007,158      0.5          4.9          57.6
turnover by credit
       cards
      #
  (c) =(b)/(a)
Average turnover      1,282       1,329        2,652       1,684       1,701        3,324         3.7          1.0          25.3
 per merchant




Notes: (i) * Period end figures.
       (ii) # Unit in thousand patacas.




                                                             - 40 -
                                            Report on Credit Card Statistics, 1st Half of 2008


5. Conclusion

Credit cards in circulation grew steadily in the first two quarters of 2008. The local
merchant turnover by credit cards posted significant annual increase while the number
of merchants accepting credit cards also registered steady growth during the survey
period. Meanwhile, the financial status of credit card lending remained favourable as
shown in a lower delinquency ratio. Credit card turnover (excluding cash advances),
however, dropped 1.6% quarter-to-quarter in the second quarter of 2008 while the
utilisation rate and credit card turnover to household final consumption expenditure
ratio also registered respective decreases of 0.3 percentage points and 1.3 percentage
points, revealing lower usage of credit card as a form of debt and of cashless payment.




                                         - 41 -
 Report on Credit Card Statistics, 1st Half of 2008


Annex Notes


METHODOLOGY AND DATA SOURCES

Credit card is defined as a plastic card used to purchase goods and services and to
obtain cash advances on credit for which the cardholder is subsequently billed by the
issuing institution for repayment of the credit extended. Credit card statistics of
Macao cover general-purpose credit cards issued to individuals by reporting
authorised credit institutions or agencies of their subsidiaries, affiliated companies or
off-shore head offices in Macao. The statistics do not cover charge cards, debit cards,
private label cards and corporate cards. The AMCM surveyed all 27 authorised
commercial banks plus the Caixa Económica Postal operating in Macao.


The credit card statistics consist of four parts: (i) the composition of credit cards in
circulation (ii) the financial status of credit card lending (iii) household consumption
and credit, and (iv) credit card transactions in Macao.


GLOSSARY


Cardholder
A person who is authorised to use credit cards for payments of goods and services.


Agent bank
A bank that, by agreement, participates in another bank’s card programme, usually by
turning over its applicants for bank cards to the bank administering the card
programme and by acting as a depository for merchants.


Issuer
An institution (or its agent) that issues credit cards to cardholders, sometimes, referred
to as the issuing bank.


Merchant
A firm agrees to accept credit cards for payments of goods and services.




                                                 - 42 -
                                             Report on Credit Card Statistics, 1st Half of 2008


Credit limit granted
The value of approved credit limits for credit cards, whether used or unused.


Credit card receivables
Total value of outstanding balances owed on credit cards, whether or not incurring
interest charges.


Utilisation rate
The rate of credit card receivables as a percentage of credit limit granted.


Rollover amount
The amount within total receivables in respect of which the cardholder has not fully
repaid the statement balance but has at least made the minimum amount of payment
required by the authorised institution. It does not include amounts that are overdue.


Credit card turnover
Aggregate transaction amount of cardholders, including retail purchases and cash
advances.


Cash advances
Transaction in which cash is received by a cardholder, typically at an ATM, and billed
to a credit card account.


Repayments
All payments for the credit card account balances owed, including payments of retail
purchases, cash advances, revolving interest, annual fee and all other charges billed to
the account.


Delinquent amount
Receivables that have been overdue for over 90 days.


Overdue
A payment is past due, i.e. the cardholder fails to pay the minimum amount at the
payment due date.



                                          - 43 -
 Report on Credit Card Statistics, 1st Half of 2008


General purpose credit card
Credit card issued under the trademark of a credit card association, e.g. Visa, Master,
China Unionpay, and accepted by many merchants.




                                                 - 44 -

				
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