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Hong Kong Banks' Bad-Loan Ratio Falls in Q1 2026

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The bad-loan ratio across Hong Kong banks declined in the first quarter of 2026, according to a quarterly update released by the Hong Kong Monetary Authority on Monday.

The classified loan ratio of the banking sector decreased to 1.87% at the end of March from 2.01% at the end of December 2025, the HKMA said.

The classified loan ratio for mainland-related lending also shrank to 1.79% from 1.94% a quarter earlier.

The delinquency ratio of residential mortgages edged down to 0.13% from 0.14% in the prior quarter, while the delinquency ratio of credit card lending increased to 0.39% from 0.35%, figures showed.

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