credit trends in cambodia financial sector
TRANSCRIPT
Recent Trends of Credit in Cambodia Financial Sector
Pascal LyChief Executive Officer
11th July 2016
Credit Bureau Cambodia
2
Overview of Credit Market Trend
3
Number of microfinance operator have 40% increase in 2015
InstitutionNumber of Operator
FY 2014 FY 2015 Mar 2016
Bank 43 44 44
Microfinance 38 53 59
Leasing 5 8 9
NGO 1 5 6
Total Operators 87 110 118
Number of operator as of March 2016
Bank37%
MFI50%
Leasing8%
NGO5%
4
More than 50% of total loan enquiry in Cambodia is requested up to $500
377 391
512
436
505 458
561
418
541
234
170 172 200
256 204 221 213
290
80 70 83 103
125 101
127 120 162
-
100
200
300
400
500
600
Q1, 14 Q2, 14 Q3, 14 Q4, 14 Q1, 15 Q2, 15 Q3, 15 Q4, 15 Q1, 16
THO
USA
ND
S
<= $500
]$500 - $3,000]
> $3,000
Number of loan enquiry capture in CBC’s database
5
Majority of account holders were between the age group of 30-39 year old dominated by female consumers
0.4%
18.6%
33.0%
23.9%
16.5%
6.8%
0.8%
0.6%
17%
30%
25%
19%
7%
0.3%
40% 30% 20% 10% 0.0% 10.0% 20.0% 30.0% 40.0%
<= 19
20 - 29
30 - 39
40 - 49
50 - 59
60 - 69
>= 70
Women (1,411,611)Men (647,998)
6
Loan size
Number of account and it growth rate by year
FY 2014 FY 2015 Mar. 2016
N GR(%) N GR(%) N GR(%)
<= $500 1,124 K 4% 1,088 K -3% 1,055 K -3.0%
]$500 - $1,000] 224 K 12% 292 K 31% 303 K 3.7%
]$1,000 - $3,000] 546 K 31% 672 K 23% 703 K 4.7%
]$3,000 - $5,000] 138 K 46% 185 K 34% 203 K 10.1%
]$5,000 - $10,000] 108 K 56% 164 K 52% 178 K 8.6%
]$10,000 - $30,000] 71 K 53% 112 K 59% 121 K 7.4%
>$30,000 37 K 44% 54 K 44% 58 K 7.5%
Overall 2,250 K 16% 2,569 K 14% 2,624 K 2.1%
Number of loan account as of Mar.2016
Account with loan category from ]$10K-$30K] has the highest growth rate of 59% in 2015
40%
11%
27%
8%7%5%2%
<= $500 ]$500 - $1,000]]$1,000 - $3,000] ]$3,000 - $5,000]]$5,000 - $10,000] ]$10,000 - $30,000]>$30,000
7
Business Loan is the most utilized product type used across all loan range shared between 38% to 75% of the entire account
53%
20%
38%
51%
63% 70% 76% 78% 75%
9%
25%32% 22%
18% 12%9%
6% 4% 9%16%
0%
20%
40%
60%
80%
100%
<=$500 ]$500 - $1,000] ]$1,000 - $3,000] ]$3,000 - $5,000] ]$5,000 - $10,000] ]$10,000 - $30,000] >$30,000
Mortgage Credit Card Personal Finance Business Loan Social Loan
8
Loan sizeAccount (in Thousand)
Coastal Plain Plateau Tonle Sap
<= $500 75,940 564,443 72,940 330,139
]$500 - $1,000] 18,879 143,142 24,980 98,455
]$1,000 - $3,000] 43,839 379,564 44,309 193,121
]$3,000 - $5,000] 11,226 117,703 11,031 54,132
]$5,000 - $10,000] 9,474 97,196 9,978 46,142
]$10,000 - $30,000] 5,948 67,109 5,613 29,556
>$30,000 2,838 39,197 2,092 10,536
Overall 68,144 408,354 170,943 762,081
Phnom Penh,Kampong Cham, Kandal and Prey Veng are the four main provinces with highest loan utilization in Cambodia
9
The new loan account opening in the market is start slowing down
on the loan size <=$500
34%21% 27% 25% 22% 27%
18% 15% 14%
42%
39%42% 40% 43% 42%
34% 36% 37%
24%40%
31% 35% 35% 31%48% 49% 49%
0%
20%
40%
60%
80%
100%
Q1, 14 Q2, 14 Q3, 14 Q4, 14 Q1, 15 Q2, 15 Q3, 15 Q4, 15 Q1, 16
Percentage of new loan account opening by loan category
<= $500 ]$500 - $3,000] > $3,000
10
Loan size
Outstanding balance and it growth by year
FY 2014 FY 2015 Mar.2016
$ GR (%) $ GR (%) $ %GR (%)
<= $500 $ 284M 17% $ 306M 8% $ 304M -0.8%
]$500 - $1,000] $ 132M 11% $ 167M 26% $ 176M 6%
]$1,000 - $3,000] $ 806 M 37% $ 969M 20% $1062M 10%
]$3,000 - $5,000] $ 445M 49% $ 599M 35% $ 679M 13%
]$5,000 - $10,000] $ 657M 60% $ 988M 50% $ 1,094M 11%
]$10,000 - $30,000] $ 1,026M 55% $1,628M 59% $ 1,747M 7%
>$30,000 $ 3,950M 45% $ 5,616M 42% $ 6,699M 19%
Overall $ 7,299M 45% $ 10,273 41% $ 11,762 14%
Outstanding balance as of Mar 2016
Loan balance with category from ]$10K-$30K] has the highest growth rate of 59% in 2015
3%
2%
9%
6%9%
15%
57%
<= $500 ]$500 - $1,000]]$1,000 - $3,000] ]$3,000 - $5,000]]$5,000 - $10,000] ]$10,000 - $30,000]>$30,000
11
Personal Finance is the second most utilized product type after business loan
7%
26% 31%23% 19% 12% 7%
5%4%
10%13%
37%
53%
65% 71% 77% 77% 81%
56%
19%
0%
20%
40%
60%
80%
100%
<=$500 ]$500 - $1,000] ]$1,000 - $3,000] ]$3,000 - $5,000] ]$5,000 - $10,000] ]$10,000 - $30,000] >$30,000
Percentage of new loan disbursement by product
Personal Finance Credit Card Mortgage Business Loan Social Loan
12
Loan sizeOutstanding Balance by region
Coastal Plain Plateau Tonle Sap
<= $500 $19 M $167 M $21 M $91 M
]$500 - $1,000] $10 M $82 M $15 M $57 M
]$1,000 - $3,000] $63 M $565 M $71 M $298 M
]$3,000 - $5,000] $36 M $386 M $39 M $184 M
]$5,000 - $10,000] $57 M $586 M $65 M $288 M
]$10,000 - $30,000] $84 M $960 M $82 M $421 M
>$30,000 $211 M $5,116 M $135 M $893 M
Overall $484 M $7,865 M $432 M $2,235 M
Phnom Penh city alone share up to 46% of the total loan market
13
Majority of new loan disbursement going to loan size >$30,000
18% 15% 12% 14% 16% 13% 10% 12% 15%
9%7%
6% 8% 9% 7%6% 7%
9%
11%10%
10% 11%12%
11%10% 11%
14%
13%14%
15% 16%16%
16%16%
17%16%
38% 43% 48% 46% 40% 45% 52% 47% 39%
0%
20%
40%
60%
80%
100%
Q1, 14 Q2, 14 Q3, 14 Q4, 14 Q1, 15 Q2, 15 Q3, 15 Q4, 15 Q1, 16
Percentage of new loan disbursement by loan category
<= $500 ]$500 - $1,000] ]$1,000 - $3,000] ]$3,000 - $5,000] ]$5,000 - $10,000] ]$10,000 - $30,000] >$30,000
14
Loan Quality
15
Up to 24% of loan customer holding more than one account within financial institution
Loan size% of customer holding difference number of account
1Account
2 Accounts
3 Accounts
4 Accounts
>=5 Accounts
<= $500 62.82% 25.38% 9.36% 2.06% 0.38%
]$500 - $1,000] 61.07% 25.71% 10.02% 2.56% 0.65%
]$1,000 - $3,000] 66.49% 24.05% 7.30% 1.74% 0.42%
]$3,000 - $5,000] 63.03% 26.60% 7.88% 1.89% 0.59%
]$5,000 - $10,000] 65.09% 26.21% 6.62% 1.48% 0.59%
]$10,000 - $30,000] 69.18% 23.56% 5.32% 1.27% 0.67%
>$30,000 62.73% 24.82% 7.72% 2.62% 2.11%
75.68%
18.16%
4.86%
1.04%
0.26%
1 Account 2 Accounts 3 Accounts4 Accounts >= 5 Accounts
Multiple account holding as of March 2016
16
Customer with higher loan size to tend to have one relationship with financial institution
Loan size% of customer having relationship with financial institution
1Institution
2 Institutions
3 Institutions
4 Institutions
>=5 Institutions
<= $500 68.33% 23.85% 6.97% 0.79% 0.06%
]$500 - $1,000] 70.23% 21.41% 7.34% 0.93% 0.09%
]$1,000 - $3,000] 76.87% 17.91% 4.59% 0.57% 0.05%
]$3,000 - $5,000] 76.71% 18.27% 4.45% 0.52% 0.05%
]$5,000 - $10,000] 81.93% 14.65% 3.05% 0.34% 0.04%
]$10,000 - $30,000] 87.52% 10.70% 1.57% 0.18% 0.03%
>$30,000 86.05% 12.03% 1.59% 0.25% 0.08%
83%
17%
Single relationship Multiple relationship
Status of customer relationship with financial institution
17
28% of the total outstanding balance in the market is involve with multiple institution relationship
Loan size
% of outstanding balance of multiple relation with financial institution
1Institution
2 Institutions
3 Institutions
4 Institutions
>=5 Institutions
<= $500 55.11% 29.33% 13.37% 2.01% 0.18%
]$500 - $1,000] 69.11% 21.91% 7.85% 1.02% 0.11%
]$1,000 - $3,000] 74.41% 19.63% 5.23% 0.68% 0.06%
]$3,000 - $5,000] 76.03% 18.83% 4.56% 0.52% 0.06%
]$5,000 - $10,000] 81.27% 15.22% 3.14% 0.33% 0.04%
]$10,000 - $30,000] 86.22% 11.82% 1.71% 0.20% 0.04%
>$30,000 66.26% 23.31% 7.14% 2.06% 1.23%
72%
20%
6% 1%1%
Outstanding balance of multiple relationship with financial institution
1 Institution 2 Institutions 3 Institutions
4 Institutions >= 5 Institutions
18
Value of PAR30 has been increase 30% from $124 million in FY2016
to $161 million in March 2016
Operators
PAR 30 and it growth by year
FY 2014 FY 2015 Mar.2016
$ GR (%) $ GR (%) $ GR (%)
Bank $47 M 14% $103 M 117% $134 M 30%
MFI $10 M 15% $19 M 80% $23 M 23%
Group Loan $0.51 M 107% $2.3 M 343% $2.4 M 6%
Individual Loan $57 M 15% $121 M 111% $158 M 30%
PAR FY140.80%$58 M
PAR FY151.21%$124 M
PAR Mar. 161.37%$161 M
19
Social and Business loan are the two main products with dramatically increase in PAR30 ratio during 2015
Product Group
PAR30 balance and it growth by year
FY 2014 FY 2015 Mar.2016
$ GR (%) $ GR (%) $ GR (%)
Personal Finance $ 13.15M 51% $ 16.23M 23% $ 19.28M 19%
Credit Card $ 0.54M 187% $ 0.39M -27% $ 0.43M 9%
Mortgage $ 6.11M 33% $ 11.18M 83% $ 11.19M 0.13%
Business Loan $ 38.28M 4% $91.22M 138% $ 128.41M 37%
Social Loan $ 0.25M 9% $ 2.50M 893% $ 2.86M 15%1.36%
2.41%
0.99%
1.39%
1.24%
PersonalFinance
Credit Card
Mortgage
Business Loan
Social Loan
PAR 30 by Product as of March 2016
20
Customer having relationship with 4 institutions tend to have high PAR30 ratio compared to other
Institute
PAR 30 ($USD Million) and it growth by year
FY 2014 FY 2015 Mar.2016
$ GR (%) $ GR (%) $ GR (%)
1 Institution $43.97 M 49% $81.21 M 85% $111.59 M 37%
2 Institutions $11.01 M -18% $25.42 M 131% $30.63 M 20%
3 Institutions $1.62 M -53% $9.98 M 518% $10.17 M 2%
4 Institutions $1.64 M -57% $7.39 M 350% $8.10 M 10%
>= 5 Institutions $0.12 M -76% $0.23 M 95% $0.81 M 247%1.32%
1.28%
1.49%
4.95%
0.96%
1 Institution
2 Institutions
3 Institutions
4 Institutions
>= 5 Institutions
PAR 30 by institutional relationship as of March 2016
YOU!THANK
(5 floor) AROMA Building #22, Street 242 corner 107,
Boeung Prolit, 7 Makara, Phnom Penh, Cambodia
Email: [email protected]
Website: www.creditbureaucambodia.com
Tel: +855 23 967 001