Consumer Credit Index Report: Quarter 4, 2020 Released January, 2021

Published Date: Friday January 29th, 2021

Summary of the Q4 report:


Consumer Credit Performance showed consistent improvement as both loan balance and the number of loan accounts sustained positive growth. The number of consumer credit applications increased for all product groups and across all regions in this quarter. The number of loan accounts increased across all regions. The amount of late repayments 30 days past their due date (30+ DPD) reduced across all regions with the highest decline in Plateau region.

  • Consumer Credit Applications

Consumer credit applications increased overall by +17%

The most significant increase was reported in mortgage applications surging +33% from the previous quarter, followed by +16%increase in personal finance applications and +2% rise in credit card application.

  • Consumer Credit Performance

The total number of credit accounts saw a marginal increase by +0.63% bringing it to 1.28 million accounts.

Outstanding balance grew by +7.17% to reach $9.76 billion by the end of the quarter.

  • Consumer Credit Quality

30+DPD as a ratio of the total balance reduced to 1.91%.

The majority of credit customers remained committed to a single financial institution and held only a single account.


Consumer Credit Applications

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


In the last quarter of 2020, the number of consumers attempting to acquire credit in three different forms – Personal Finance, Credit Card, or Mortgage all increased moderately, with an overall rise of +17%.


The largest increase was in mortgage applications which increased by +33% with the highest increase of +37% in the Plateau region. Personal finance applications and credit card applications increased by +16% and +2% respectively.


The percentage change in the loan amount sought through credit application also increased by +25%, greater than the increase in the same period last year (2019 Q4:17%). This was due to the increase in application amounts across personal finance (+26%) and mortgage (+21%) applications compared to last quarter whereas credit card application amount was reduced by -9%.


Consumer Credit Performance:


This metric indicates the volume of consumer loan as of the reporting quarter reflecting an active credit market.


As of December 2020, the number of consumer loan accounts marginally increased by +0.63% from the previous quarter, resulting in the total number of loan accounts throughout the country going up to 1.28 million. Out of this number, 81.18% comprised of personal finance loans while a much smaller share was recorded for mortgage loans (10.76%) and credit card loans (8.06%). This increase was seen in all 4 regions of the Kingdom, +5.6% in Plateau, +1.4% in Coastal, +0.8% in Tonle Sap, and +0.5% in Plain.

Consumer loan balance continued its rise, increasing at +7.17% as of December 2020. By the end of the quarter, there was a total $9.76 billion outstanding consumer loan outstanding balance.


Mortgage loans captured more than half of the total consumer outstanding loan balance with 52% share while personal finance loans accounted for 47.40%. Although the number of mortgage loan accounts accounted for only 10.76 of the total loan accounts, in terms of amount, it took up more than half the total loan balance. Credit card loans continued to maintain low share of outstanding balance at 0.61%. Overall, the kingdom saw a positive growth in all regions – Plain +7.7%, Plateau +7.3%, Coastal +6.6%, and Tonle Sap +4.8%.


Consumer Credit Quality:


This metric is measured by taking the ratio of loan accounts with late repayments 30 days past their due date, indicated as 30+ DPD. It indicates the creditworthiness and risk of default within the reporting quarter.


The instance of 30+DPD significantly reduced to 1.91% this quarter from 2.42% in Q3. Of all the three products, 30+DPD ratio was the highest for credit card with 4.57%.


The 30+ DPD amount recorded an overall reduction of -15% across the regions. The largest improvement in 30+ DPD amount was seen in Plateau and Coastal regions with a drop of -49% and -20% respectively. In addition, Plain and Tonle Sap regions fell by -16% and -8% respectively.



The number of customers who hold credit accounts with only one financial institution remained high at 73.62% of all customers while the share of the number of customers holding relationship with multiple financial institutions remained far lower at 26.38%.


The share of the number of customers holding only one loan account stood at 60.70%; those holding two accounts made up 27.46%; those holding three accounts made up only 8.78%; and those with three or more accounts were 3.05% of the entire credit customer base.


“The consumer credit market sustained positive improvement in the last two quarters of 2020”, said Mr. Oeur Sothearoath, CEO of CBC. He added that “Despite the growth in credit applications and credit performance in consumer credit market, 30+ DPD significantly improved to 1.91% recording drop across all regions in the kingdom.”.