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Cambodia: Consumer credit performance improving
Consumer credit performance is showing consistent improvement as both loan balances and the number of loan accounts issued are undergoing sustained positive growth, according to a report from the Credit Bureau Cambodia (CBC). The CBC, which began operations in 2012, is the leading provider of credit information, analytical solutions and credit reporting services to banks, microfinance institutions, lending companies, credit operators and consumers in Cambodia.
According to its report, the number of consumer credit applications increased in all product groups (personal loans, credit cards and mortgages) in all regions during the fourth quarter of 2020 (Q42020). The number of late repayments net 30 days past due dates (30+ DPD) also reduced across the nation. The highest decline in 30+DPD was in the plateau region.
The report noted that consumer credit applications increased overall by 17 percent. The most significant increase was in mortgage applications, which surged 33 percent from the previous quarter (Q32020). Personal finance applications showed a 16 percent increase with credit card applications rising 2 percent.
“The consumer credit market sustained positive improvement during the last two quarters of 2020”, said Oeur Sothearoath, chief executive officer of CBC. He added that 30+DPD also significantly improved with a 1.91 percent drop measured across all regions in the Kingdom.
As of December 2020, the number of consumer loan accounts marginally increased by 0.63 percent from Q32020, with the total number of loan accounts in the country increasing to 1.28 million.
Personal finance loans accounted for 81.18 percent of that number, with mortgages representing 10.76 percent of the volume and credit cards comprising the remainder at 8.06 percent. Consumer loan balances increased by 7.17 percent as of the end of Q42020 to a total $9.76 billion in outstanding consumer loan balances. Mortgage loans captured more than half of the value of total consumer outstanding loan balances (52 percent) with personal finance loans accounting for 47.4 percent and credit card debt for 0.61 percent. The number of customers holding credit accounts with a single financial institution is currently 73.62 percent. Customers holding credit accounts at multiple financial institutions amount to 26.38 percent, according to the report. Customers holding a single loan account stood at 60.7 percent. Those holding two made up 27.46 percent. Those with three comprised 8.78 percent and customers holding three or more made up 3.05 percent of all the credit customer base.
Source: https://www.khmertimeskh.com/50809008/consumer-credit-performance-improving/