Credit card issuance slows in Q1 2025 amidst soft retail demand

Gen Z accounted for 26.9% of total originations.

Credit card issuance slowed in the first quarter of 2025 (Q1 2025) amidst weakening retail spending.

Originations fell 4.5% year-on-year, according to TransUnion's Hong Kong Industry Insights Report.

Gen Z accounted for 26.9% of total originations, overtaking Gen X for the first time. Their credit card originations rose 10.2% YoY.

Some areas of the consumer credit market saw growth in Q1 2025.

Personal loan originations rose 6.6% year-on-year in Q1 2025.

Gen Z drove growth in personal loans, with volume up 35.4% YoY and making up 15.5% of total originations.

Meanwhile, data from the Hong Kong Monetary Authority (HKMA) showed mortgage originations surged 18.7% year-on-year, with average loan value up 9.6% and outstanding accounts rising 22.4%.

TransUnion said non-bank lenders gained market share. Traditional banks accounted for 80.4% of credit card originations, a 2.8% decline from the previous quarter.

In personal loans, money lenders issued 11% more than banks. Digital banks contributed 7.6% of personal loan originations, more than double compared to last year.