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: bis@creditbureaucambodia.com

Website: www.creditbureaucambodia.com

Tel: +855 23 967 001