Consumer credit remains strong in Q4, rising to $11.89B: CBC

Harrison White

Cambodia’s consumer credit growth has remained relatively strong in the fourth quarter of 2021 with data highlighting strong improvement in both number of loan accounts and total loan balance recording positive growth.

In addition, loan quality as measured by 30+ DPD ratio improved significantly as the ratio dropped across the regions. In total consumer credit hit Outstanding balance grew by +4.58% to reach $11.89 billion by the end of the quarter.

Consumer credit is defined as personal debt taken and split into three sectors personal finance, mortgage loans and credit cards.

Consumer Credit Cambodia

As of December 2021, the number of consumer loan accounts moderately increased by +2.20% from previous quarter, resulting in 1.35 million total number of loan accounts throughout the country.

Out of this number, 79.77% comprised of personal finance loans while a much smaller share was recorded for mortgage loans (11.82%) and credit card loans (8.41%).

Oeur Sothearoath, CEO of CBC said: “The demand for consumer credit was slower in terms of the number of applications. However, consumer credit performance remained strong with an increase in both number of loan account and loan balance in this quarter, compared to the previous ones.”

He added loan quality improved with a moderate decline in 30+ DPD ratio​ from 2.56% in previous quarter to 2. 03% in this last quarter of 2021.

Cambodia Investment Review had previously reported that Consumer credit applications had fallen by 34% in the second quarter as loans 30 days past their due date hit 2.57% an increase of 18% quarter-on-quarter.

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