Hong Kong banks log larger loan sizes but card limits slashed

Stronger domestic demand will support growth of credit cards and personal loans, TransUnion said.

Hong Kong’s consumer credit market is expected to report continued improvement in lender and consumer confidence in Q2 2026, according to TransUnion.

This follows after the market recorded loan sizes rising whilst capping card limits lower in the first quarter of the year.

Average loan sizes rose by 9.1% YoY in the first quarter of 2026, with TransUnion observing greater appetite from larger lenders and a growing share of prime plus and super prime borrowers. Credit card origination volumes rose 6.7% year-on-year (YoY) in Q1 2026 period.

However, average credit limits on new cards issued declined by 6.3% YoY over the quarter, which TransUnion said reflected lenders continued underwriting discipline.

For the Q2 period, stronger domestic demand will support balanced growth across credit cards and personal loans, the consumer credit information company said in its “Hong Kong Industry Insights Report for Q2 2026.”

“New activity reflected a disciplined approach from lenders, with originations increasingly concentrated among lower-risk borrowers, while portfolio performance remained broadly stable to improve,” TransUnion wrote in an announcement on 26 August 2026.

Outstanding credit card balances grew by 4.3% YoY in Q2 2026, thanks to sustained consumer spending activity in line with broader retail trends, it said.

Average balance per customer rose 3.4% during the quarter, with consumers continuing to leverage their cards to support consumption needs, TransUnion said.

“Lenders continue to meet demand selectively, prioritising lower-risk consumers while maintaining prudent underwriting standards,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion.

“As consumer confidence improves, capturing and defending share of wallet among prime and above cardholders will be a key opportunity for lenders in the months ahead,” Sun said.