According to the CBC’s latest Consumer Credit Index Report, credit application seasonally dropped in the Q2 2017, but better performance than the same period last year. Despite the drop, coastal region saw an increase both credit card and mortgage application. However, the new loan disbursement increased at +4.19% in term of accounts and +6.59% in term of outstanding balance.
Consumer Credit Application: represents the intention of consumers to acquire credit in terms of personal finance, credit card or mortgage
The second quarter of this year, credit application saw a moderate drop of -15% compared to the first quarter (+29%), but better than the same quarter last year (-25%). The drop saw in all the 3 categories: credit card application (-18%), personal finance application (-15%), and mortgage application (-8%). Despite the drop in most regions, costal region is the only area which had an increase in credit card application (+100%) and mortgage (+3%).
Consumer Credit Performance: indicates the situation of actual consumer loans as of the reporting quarter
The number of accounts has slow down its increase by 4.19% while it went up to almost 11% last quarter. The total number of accounts reached 785K as of June 2017, in which personal finance still accounted for the largest share (82.42%) following by mortgage (+10.53%), and credit card (7.06%).
Similarly, the outstanding balance saw a slightly increase of 6.59% after the significant growth in Q1 (+14.97%), which made the balance reach to USD 3.87 billion this quarter. The total outstanding balance was almost shared equally by personal finance (50.24%) and mortgage (48.89%), while credit cards still represent a very small share, less than 1%.
Consumer Credit Quality: reflects the ability of debtors to meet their scheduled payments
The Cambodian landscape still remains stable regarding non-performing loans, loans for which the debtor has not been able to meet its scheduled payments for more than 30 days (NPL 30). The NPL 30 continued to very little increase from 1.62% in Q1 to 1.70% this quarter.
Regarding multiple relationship loan, it is not different from last quarter, where almost 80% of customers has relation with only one institution, while the rest has relationship with more than one institution. In addition, almost 70% of the customers has only 1 accounts and about 30% has 2 or more than two accounts.
“Although this trend is seasonal, in this quarter, there was an increase in the new account opening at +4.19% in consistent with +6.59% increase in total outstanding balance. In addition, although the non-performing loan 30 days has started little increase, it is still low and manageable, but it can be a sign for all players to be cautious on their loan quality.” said Mr Sothearoath Oeur, Chief Executive Officer at the CBC.
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