Consumer Credit Index Quarter 3, 2018: Total Consumer Credit Increased in all regions, total accounts and outstanding moderately grew while NPL 30 was stagnant

• Consumer Credit application increased by +22%
  • Personal Finance application decreased by +21%
  • Credit Card application slightly increased by +39%
  • Mortgage application increased by +24%
• Number of loan increased by +6.26%
• Outstanding balance increased by +9.50%
• Total Consumer Credit account (Personal Finance, Credit Card, Mortgage) as of September 2018: 1.01M (35.19% of total industry loan account), total Consumer Credit outstanding balance USD 5.65 billion (29.32% of total industry loan)

Phnom Penh, Nov 7^th, 2018

According to the CBC’s latest Consumer Credit Index Report, credit application saw a pick-up in this quarter after dropping in Q2, 2018, which was double compared to the same quarter last year. Likewise, the total accounts and outstanding of consumer credit moderately grew compared to previous quarter, while non-performing loan 30 days (NPL 30) remained the same as of Q3, 2018.

Consumer Credit Application: represents the intention of consumers to acquire credit in term of Personal Finance, Credit Card, and Mortgage

In Q3, 2018 Consumer Credit application improved to +22% in number and +19% in amount compared to Q2, 2018. This growth of number of credit application was double compared to the same period in 2017, which was +10%. The increase was mainly driven by Credit Card application (+39%), Mortgage application (24%), and Personal finance (21%). Mortgage application was the main contribution in the increase of amount of credit application, contributed by +41%, following by Credit Card (39%), and Personal finance (14%). Interestingly, all products saw growth in all regions. Plain and Plateau regions contributed more than 20% growth in personal finance (previous quarter: -16% and -14% accordingly). Similarly, Mortgage application saw highest increase in Plateau region (+46% Vs. Q2, 2018: -24%), following by more than 20% in the other 3 regions while Coastal and Plain regions were the key contribution to Credit Card Application with the growth of 48% and 42% accordingly.

Consumer Credit Performance: indicates the situation of actual Consumer Credit as of the reporting quarter

As of this quarter, the total number of account grew by +6.26%, slightly increase from previous quarter which was +5.62%. As of this Q3, 2018, total industry loan account reached 2.88 million of which total Consumer Credit account was 1.01M (vs 955K Q2, 2018) represented 35.19% of total industry loan account. This growth saw in all regions where Tonle Sap and Plain contributed more than 6%. Personal Finance still accounted for the largest share in Consumer Credit account of 80.75% followed by Mortgage 11.64%, and Credit Card 7.60%. These proportions remained very similar to previous quarter. Mortgage’s share looked bigger due to the growth of +7.12% in number of account. At the same time, Personal Finance and Credit Card grew at +6.23% and +5.21% respectively.

Reflecting number of account’s performance, the outstanding balance saw an increase of +9.50%, almost twice as the growth in previous quarter (Q2, 2018: +5.08%). This increase made the outstanding balance reached to USD 5.65 billion at the end of the quarter represented 29.32% of total loan in the market. Personal Finance and Mortgage almost shared the same proportion of the total Consumer Credit outstanding which was 50.74% and 48.46% respectively, while Credit Card accounted for the smallest share of 0.80%. Interestingly, this quarter saw the similar contribution of the three products to the outstanding growth which were more than 9%. Phnom Penh represented almost 49% of total Consumer Credit outstanding book that made Plain region shared up to nearly 76% of total book. Kandal shared only 7.22% as the 2^nd largest province followed by Siem Reap & Kampong Speu similarly shared of 6.27% and 5. 68% respectively.

Consumer Credit Quality: reflects the ability of debtors to meet their scheduled payments

Non-performing loans 30 days (NPL 30) remained similar to previous quarter (Q2, 2018: 1.30%) and in region level, the NPL 30 days was below 2%, though the NPL amount changed was almost 10% increase compared to Q2, 2018. Across the 4 regions, Plateau saw the highest changes of NPL 30 amount (+20.4%) compare to previous quarter despite the NPL 30 rate was just 1.88%, slightly increased from last quarter (Q2, 2018: 1.74%). Phnom Penh, whose share almost half of the outstanding, noted the good improvement on its NPL 30 (Q3: 1. 27% Vs. Q2: 1.35% Vs. Q1: 1.57%). Preah Sihanouk’s NPL 30 was the lowest as of this quarter (Q3: 0.50%) while its share of 3% of the total outstanding book.

Multiple Loan Relationship: referring to customers who hold many loan accounts or/and split their loans with more than one financial institutions at the point of reporting time (Consumer Credit only)

No difference from previous quarters where the majority still remained with customers holding one loan account, which was 67.22% as of September 2018; though, slightly dropped compared to last quarter while noticed bigger portions of customers holding two accounts and three accounts which were 24.17% and 6.69% respectively. Total customers who hold at only one institution remained significant in this market of 78.56% of the total Consumer Credit customers, which just slightly decreased similar to last quarter (80.30%).

“after the long holiday in Quarter 2, the consumer credit application saw seasonally growth again this quarter from -15% to 22%. In addition, the total consumer credit account continued to increase moderately to 1.01 million accounts and USD 5.65 Billion in term of outstanding. The NPL 30 was very similar to previous quarter, which was around 1.30%, telling the good health of the consumer credit market.” said Mr. Sothearoath Oeur, Chief Executive Officer of Credit Bureau Cambodia.

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Note to editors

1)  The full report is attached to this message

2)  For the purpose of this report, Cambodia is classified in 4 regions: Tonle Sap, Coastal, Plain and Plateau

3)  About Credit Bureau Cambodia (CBC)

Credit Bureau Cambodia is the leading provider of credit information, analytical solutions, and credit reporting services to banks, microfinance institutions, leasing companies, credit operators and consumers in the Kingdom of Cambodia.

CBC has been operated since March 2012, with a strong support from the National Bank of Cambodia (NBC), the Association of Banks of Cambodia (ABC), the Cambodian Microfinance Association (CMA) and the International Finance Corporation (IFC). CBC promotes greater financial stability by providing accurate real time data to consumers and industry that helps them control the financial aspects of their businesses. It allows businesses to manage credit risk, prevent fraud and automate decision-making. CBC also helps individuals to check their credit report to ensure they have access to loans and finance and to protect themselves against identity theft.

CBC is a joint venture between Credit Bureau Holding Cambodia (represented by the ABC and CMA) and Equifax Cambodia Holding Pte. Limited (ECH) who has significant global footprint operating leading credit bureaus.  ECH is a Singapore incorporated company established as a joint venture between Asia Credit Bureau Holdings Pte Ltd (ACB), a Singapore-based company and Equifax company (United States).