Logo of Phnom Penh Post newspaper Phnom Penh Post - Consumer credit hits $7B in Q2

Consumer credit hits $7B in Q2

Content image - Phnom Penh Post
An Acleda Bank Plc employee hands money to a customer. Heng Chivoan

Consumer credit hits $7B in Q2

The total outstanding balance of consumer credit in Cambodia continued to steadily increase, reaching $7.16 billion by the end of June – a 6.8 per cent increase from the first quarter – according to a Credit Bureau Cambodia (CBC) report released last week.

The number of consumer loan accounts increased by 5.03 per cent quarter-on-quarter, bringing the total number of accounts to 1.19 million, equal to 37.67 per cent of total individual accounts in the market, said the report.

As of June, non-performing loans after 30 days (NPL 30) fell to 1.19 per cent from 1.24 per cent at the end of March, it said.

The $7.16 billion in outstanding consumer credit accounted for roughly 30.22 per cent of the total outstanding balance of individual loans in the market.

However, the report said, the number of customers applying for consumer credit in its three forms – personal finance, credit cards and mortgages – all dropped 19.29 per cent.

The report said the biggest drop was in mortgage applications, which fell by 36 per cent quarter-on-quarter, with the coastal regions seeing the sharpest drop at 49 per cent.

Applications for credit cards fell by nine per cent and personal finance applications shrank 18 per cent, it said.

CBC CEO Oeur Sothearoath said this quarter was not entirely different from previous years, in which consumer credit applications consistently dropped in the second quarter.

“However, compared to the same period in 2018, the number of applications increased by 9.03 per cent this quarter,” he said.

Sothearoath said the number of consumer credit accounts has grown steadily since last year at between five and seven per cent each quarter, with the outstanding balance increasing at between six and eight per cent.

Acleda Bank Plc president and CEO In Channy attributed the decline in the number of consumer credit applications during the second quarter to a decline in consumer spending.

“The number of consumer credit applications may have fallen, but the balance has grown largely,” he said.


  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one