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Cambodia: Consumer credit performance improves in first quarter
Consumer credit performance showed strong improvement as the number of loan accounts and loan balance recorded positive growth across the regions. Consumer credit applications increased in the first quarter of this year, compared to the same period last year, according to the data from the Credit Bureau of Cambodia (CBC).
CBC said that the total number of loan accounts saw a moderate increase of 2.68 percent, bringing it to around 1.39 million accounts. The outstanding balance grew by 5.08 percent to reach $12.50 billion by the end of the quarter. Meanwhile, consumer credit applications increased overall by 17 percent. The rise was reported in personal finance applications which increased 16 percent from the previous quarter. Credit card and mortgage applications increased by 0.2 percent and 24 percent, respectively
The majority of credit customers remained committed to a single financial institution and held only a single account.
In the first quarter of 2022, the number of consumers attempting to acquire credit in three different forms – personal finance, credit card, or mortgage increased by 17 percent. The mortgage application rose by 24 percent with the largest rise of more than 46 percent in the Tonle Sap region.
“The demand for consumer credit was higher in terms of the number of applications. Consumer credit performance remained strong with an increase in both number of loan accounts and loan balance in this quarter, compared to the previous ones,” said Oeur Sothearoath, CEO of CBC.
He added that loan quality reduced with a moderate increase in 30+ DPD ratios from 2.03 percent in last quarter 2021 to 2.35 percent in the first quarter of 2022.
Tongngy Kaing, the spokesperson for the Cambodia Microfinance Association, said, “In this year, loan restructures have been restricted and the increase is expected to remain at manageable levels.”
Source: https://www.khmertimeskh.com/501071305/consumer-credit-performance-improves-in-first-quarter/