Phnom Penh, February 14th, 2017
According to the CBC’s latest Consumer Credit Index report, credit has kept increasing in Q4 2016, contrary to trends which generally show a slowdown in Q4. Credit cards applications came back to a normal growth after a sharp increase in Q3, and non-performing loans kept their low and stable level.
Consumer Credit Application: represents the intention of consumers to acquire credit in terms of personal finance, credit card or mortgage
When seen from a yearly perspective, quarters 2 and 4 usually observe a decrease in credit applications. This year, applications kept increasing (+13% in number, +1% in value), with an equal growth between all three types of credit applications: personal finance, credit cards and mortgage. The Plateau region seems to have singular behaviors: the area went through a high rise in mortgage applications (+84% in Q4, +109% in Q3), and is the only region with a slowdown in credit card applications (-22% in Q4 vs. +96% in Q3).
Consumer Credit Performance: indicates the situation of actual consumer loans as of the reporting quarter
The number of accounts has increased every quarter since the beginning of the year, but at a slower pace: from an evolution of 11.44% during Q1 and 7.86% during Q2, it has now only increased by 1.8% compared to the previous quarter. The total number of consumer loan accounts remains stable: 679K, composed by 85% of personal finance.
The outstanding balance ($3.16B) – that has had a very quick growth in Q3 – remains stable, with a 4% increase. It is still divided between Personal Finance (51%) and Mortgage (48%), while credit cards still represent a very small share.
Consumer Credit Quality: reflects the ability of debtors to meet their scheduled payments
The Cambodian landscape 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).
It has increased by 1.52% in Q4 vs. 1.48% in Q3. Almost 80% of Cambodians are still committed to a single financial institution, which minimizes the risk of default payment.
“When we look at the latest results from a yearly perspective, we can see that credit applications have increased both in number (22%) and in value (31%) in 2016, compared to 2015. December 2016’s outstanding balance has also increased by 32% compared to last year”, says Mr Sothearoath Oeur, Interim Chief Executive Officer at the CBC, analyzing the big picture.
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