Consumer Credit Index Quarter 1, 2017: Mortgage pushed the credit application’s growth, Outstanding balance kept increasing, non-performing loans remain stable

Phnom Penh, May 2nd, 2017


According to the CBC’s latest Consumer Credit Index report, credit application has kept increasing in Q1 2017, which is the same trend as Q1 last year, though Credit card application dropped down compared to last quarter. Non-performing loans kept their low at stable level.

Consumer Credit Application: represents the intention of consumers to acquire credit in terms of personal finance, credit card or mortgage

The first quarter of this year, credit application is back to its normal trend, which kept increasing (+29% in number, +30% in value). This growth was mainly contributed by the mortgage (+47%) and personal finance (+28%), while credit cards saw a decline by -11%. The Coastal region had a sharp increase in mortgage application (Q1, 2017: +83% Vs. Q4, 2016: +19%), following by the Plain region (Q1, 2017: +49% Vs. Q4, 2016: +9%). However, credit card application dropped down in all regions, especially in Coastal region (-61%) and (-48%), which is due to the low base.

Consumer Credit Performance: indicates the situation of actual consumer loans as of the reporting quarter

The number of accounts has significantly increased up to 10.87% (Q4, 2016: 1.80%), almost reached the peak of 2016 (+11.44%). This increase made the total number of consumer loan accounts to 753K, composed by 82.92% of personal finance and almost 10% of mortgage. Credit card accounts still contributed small number of 5.64%.

Similarly, the outstanding balance saw a significant rise from 3.97% in Q4, 2016 to almost 15% this quarter, which made the outstanding balance increase to $3.63B. 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 slightly increased by 1.62% this quarter vs. 1.52% in Q4, 2016. It is similar to previous quarter, almost 80% of Cambodians are still committed to a single financial institution, which minimizes the risk of default payment. Consumers who have one accounts represented almost 70% while the consumers who have 2 accounts and more were only 30%.

 “Not different from previous year trend, the first quarter of the year usually saw a significant growth of credit applications, though credit cards seem to slowdown compared to previous quarter.”, says Mr Sothearoath Oeur, Interim Chief Executive Officer at the CBC.


For more information, please contact:

Credit Bureau Cambodia
PHAY Sophal, Product Development Manager
Tel: +855 86 999 310

Note to editors

1) The full report is attached to this message
2) For the purpose of this report, Cambodia has been separated in 4 regions: Tonle Sap, Coastal, Plain and Plateau
3) About Credit Bureau Cambodia (CBC)

Credit Bureau Cambodia is the leading provider of credit information, analytical solutions and credit reporting services to banks, microfinance institutions, lending companies, credit operators and consumers in the Kingdom of Cambodia.

The CBC has been created in March 2012, with a strong support from the National Bank of Cambodia (NBC), the Association of Banks of Cambodia (ABC), the Cambodian Microfinance Association (CMA) and the International Finance Corporation (IFC).

The CBC promotes greater financial stability by providing accurate real time data to consumers and industry that helps  them  control  the  financial  aspects  of  their  businesses.   It allows

businesses to manage credit risk, prevent fraud and automate decision-making. The CBC also helps individuals to check their credit report to ensure they have access to loans and finance and to protect themselves against identity theft.

The CBC is a joint venture between Credit Bureau Holding Cambodia (represented by the ABC and CMA) and Equifax Cambodia Holding​​ Pte. Limited (ECH) who has significant global footprint operating leading credit bureaus.  ECH is a Singapore incorporated company  established  as  a  joint venture between Asia Credit Bureau Holdings Pte Ltd (ACB), a Singapore-based company and Equifax company.

Find attachement here : Consumer Credit Index Quarter 1, 2017