Personal finance and mortgage experience a slowdown, credit cards continue to grow

Published Date: Friday March 31st, 2017

Phnom Penh, Cambodia, Wednesday, 31 August 2016

Credit Bureau Cambodia has just announced the release of its Consumer Credit Index for Q2 2016. The report shows a drop of 25% in consumer credit applications, while total consumer credit performance grew by 7.86%. It is the first time that this report is published, allowing all potential credit acquirers to have access to the right information for their future financial decisions.


Credit Bureau Cambodia (CBC) is the leading provider of credit information, analytical solutions and credit reporting services in Cambodia. The index, published quarterly, measures the evolution of credit application, credit performance, and credit quality for personal finance, credit cards, and mortgage.

Consumer Credit Application: Consumer credit application represents the intention of consumers to acquire credit in form of personal finance, credit cards, or mortgage.

In overall, consumer credit applications have decreased both in number (-25% compared to Q1 2016) and in value (-23%).

The fall is mostly due to a decrease in personal finance applications (-26% in number,          -27% in value), in all regions of Cambodia. Mortgage applications have also experienced a slight drop in the number of applications (-10%) but the value seems to remains stable (-1% compared to Q1 2016).

By contrast, the number of credit card applications keeps increasing (+69% throughout the country), mostly driven by the very high increase in the Plateau region (+1,200%). The Tonle Sap region still remains a little behind (-20%).

Consumer Credit Performance:  Consumer credit performance indicates the situation of actual consumer loans as of the reporting quarter.

During Q2 2016, the number of consumer loans account has followed the Q1 trend, and increased by 7.86% across the country, reaching 631K ongoing accounts in total in Cambodia. The outstanding balance also continues to grow and is now of $2.73 billion (+6.75% compared to Q1 2016).

Personal finance loans are the most common, representing almost 86% of total accounts, and over $150 million. The other loans consist of 9.30% mortgage loans and 5% credit cards.

Consumer Credit Quality: consumer credit quality reflects the ability of debtors to meet their schedule payments.

The total amount of non-performing loans (loans for which the debtor has not been able to meet its schedule payments for more than 30 days, NPL 30) now represents 1.46% of the total outstanding balance. This number has slightly increased at it was only 1.21% during Q1 2016. Credit cards have the biggest share of NPL 30 (2.57% of total credit card outstanding balance), followed by personal finance (1.76%) and mortgage loans (1.07%).

Nearly a third of debtors hold multiple accounts on two products or more. Most people enroll with only one financial institution, however, 19% of borrowers have signed loans in several institutions (vs. 18.5% in Q1 2016).

Mr. LY Pascal, Chief Executive Officer of CBC, highlights that this is the first time that CBC releases a Consumer Credit Index to the public. He adds:

“CBC plans to release the Consumer Credit Index every quarter from now on. The market can expect other Indexes of this kind to be distributed in the coming months. Our goal is to help and support the financial industry by providing useful information.”

For detail information about the report, please visit our website as below Link: