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Consumer Credit Index Report: Quarter 2, 2019

Released August 05, 2019

Credit Bureau Cambodia
August 9, 2019
Consumer Credit Index Report: Quarter 2, 2019

Consumer Credit Performance continued to grow across all regions in the country, with both the number of consumer loan accounts being opened and the total balance of these accounts rising at a steady upwards trajectory. This was despite a slump in consumer credit applications, a typical trend in Q2 over the past years, and, in fact, the percentage change in the amount of quarter-on-quarter Consumer Credit Application fell less steeply than at the same time last year. The percentage of 30+DPD decreased slightly overall, while the change of 30+DPD in Coastal region was down compared to previous quarter.

  • Consumer Credit Applications
    • Consumer Credit applications decreased overall, by -19.29% 
    •  The steepest decrease is in mortgage applications, down -36% from the previous quarter
    • Credit card applications also dropped by -9%, a slow-down from Q1 of this year when applications fell by -20%
  • Consumer Credit Performance
    • The total number of credit accounts grew by +5.03%, to reach 1.19 million accounts
    • Balance grew by +6.80% to reach $7.16 billion by the end of the quarter
  • Consumer Credit Quality
    • 30+DPD slightly decreased to 1.19% 
    • The majority of credit customers remain committed to a single financial institute and hold a single account

Consumer Credit Applications:

This metric represents an intention of customers to acquire credit in the form of Personal Finance, Credit Card, or Mortgage.

In the second quarter of 2019, the number of customers attempting to acquire credit in the three different forms — personal finance, credit card and mortgage — all dropped. This overall dip of -19.29% was in keeping with previous years where the amount of applications decreased in Q2. 

The biggest drop off was in mortgage applications, which fell by -36%. This held true for the whole country, with the Coastal region seeing the sharpest fall at -49%. The smallest decrease was in applications for credit cards, which fell by -9%, significantly lower than the decrease of -20% in Q1.

The percentage change in the amount of money sought through credit also dropped by -9%, lower than same period last year (2018 Q2: -14%). This was due to the drop in personal finance (-10%) and mortgage (-5%). However, amount of credit card application saw a rise of 2% compared to last quarter.

Consumer Credit Performance:

This metric indicates the actual situation of consumer loans as of the reporting quarter.

As of June 2019, the number of consumer loan accounts continued its steady increase, growing at +5.03% from the previous quarter. This brought the total number of consumer loan accounts around the country up to 1.19 million equal to 37.67% of the total individual accounts in the market. Of this number, 81.68% were personal finance loans, while a much smaller 11.04% were mortgage loans and about 7.29% were credit card loans. This growth was seen across all four geographic regions of the Kingdom, with the Plain leading the growth with a +5.8% increase in loan accounts. 

Consumer loan balance also continued its steady rise, increasing at +6.80% as June 2019, accounted for 30.22% of the total outstanding balance of individual loans in the market. By the end of the quarter, there was a total of $7.16 billion outstanding in consumer loan balance.

Personal finance loans continue to account for slightly more than half (51.46%) of all consumer credit outstanding loans, while mortgage loans account for 47.79%. Credit card loans continued to maintain a low 0.75% of the total balance. Overall, the Kingdom saw positive growth in loan balance across all regions, with the Plain leading at +7.5%, followed by the Tonle Sap and the Coastal areas which equally grew at +4.7% and the Plateau area at a slightly slower +2%. 

Consumer Credit Quality:

This metric is measured using the ratio of 30 days plus past due (30+DPD). It reflects the performance of loans within the reporting quarter.

The instance of non-performing loans after 30 days (30+DPD) slightly decreased to 1.19% this quarter from 1.24% in Q1. Of all the three products, credit card’s 30+DPD ratio slightly increased to 2.63% from previous quarter 1.42%.

The percentage change of 30+DPD’s amount overall increase about +2.76% across the region. The change in 30+DPD’s amount increased across three of the regions but dropped in the Coastal area, by 5.1%. 

The number of customers who hold credit accounts with one singular financial institution remained high, at 76.95% of all customers, while the number of customers holding multiple loan remained far lower at 23.05%. The number of customers holding one account stood at 66.39%; those holding two accounts made up 26.56%; those holding three accounts made up only 7.70%; and those with three or more accounts were around 2.35% of the entire credit customer base.

“This quarter was not really different from past years, which the credit application dropped in 2ndquarter. However, compared to the same period in 2018, this quarter the number of application increased by 9.03%, while the request amount increased almost double.” Said Mr. Oeur Sothearoath, CEO of CBC. 

He added that, “the consumer credit accounts grew steadily since 2018 between 5%-7% each quarter, while the outstanding balance grew between 6%-8%. This quarter, the overall credit quality of the three products was still good as the 30+DPD remained low at 1.19%.”

Download the full Consumer Credit Index Report at here



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