Age, Profession, Income, Location..., Who Uses Consumer Credit in Morocco
13 July 2010
Read by 1354 persons
39% of borrowers are over 50 years old and 32% are between 40 and 49 years old. Those under 30 only account for 8%.
Civil servants and employees represent more than three-quarters of borrowers. The proportion of retirees has doubled in two years.
People with incomes below 4000 DH make up half of the borrowers.
Who is borrowing more and who is using consumer credit less? Which socio-professional category repays its loans without incident, and which one presents a high risk? In the difficult context currently affecting the consumer credit sector, the answer to these questions is of major importance, both for financing companies, supervisory bodies, and the general public. In 2009, credit production contracted by 3.5% compared to 2008, to 16 billion DH. Non-performing loans, however, increased by 14.6% over the year, double the growth rate recorded in 2008, reaching 5.2 billion DH. And while 2010 was expected by credit companies to be a year of recovery, its first indicators remain unconvincing. Production in fact fell by 2.7% by the end of March 2010 compared to the same period in 2009, and non-performing loans increased by 9% to reach 4.8 billion DH.
The situation is therefore alarming, and the results of the Bank Al-Maghrib survey on the profile of consumer credit beneficiaries are timely. Recently published in the 2009 report of the banking supervision department, these results provide a comprehensive overview of borrowers in the consumer credit sector, allowing financing companies to take action to address current problems, such as focusing commercial and promotional actions on certain customer categories to revitalize activity, or avoiding certain profiles to reduce the rate of defaults.
The average outstanding amount per credit file is 27,000 DH
The trends revealed by the survey results are interesting in more than one way. First, the central bank reviewed the amounts borrowed by borrowers. It appears that the average outstanding amount per file was 27,000 DH in 2009, compared to 22,600 DH a year earlier, an increase of almost 20%. The average outstanding amount per auto loan file is 60,000 DH. While that for personal loans (unallocated loans) is 24,380 DH. Note that the average production per file in 2009 is higher than the outstanding amount. The average amount of new auto loans is indeed 120,000 DH, double the average outstanding amount. That for personal loans is 36,480 compared to an average outstanding amount of 24,380 DH. Ultimately, the overall average production per file in 2009 is 37,663 DH, 40% more than the average outstanding amount.
Now let's move on to the main results of the survey, which breaks down credit files according to four criteria. The first is the age of the borrowers. This segmentation reveals that only 8% of consumer credit beneficiaries are under 30 years old, and that this proportion remained stable between 2006 and 2009. Sociological explanation provided by Bank Al-Maghrib: "Moroccans rarely use consumer credit before forming a household." Borrowers aged 30 to 39 represent 21% of the total. This proportion is slightly down compared to 2006, when it was 23%. The proportion of forty-year-olds in credit files is still significant, but its trend has been downward for four years. While they represented 41% of borrowers in 2006, they now only constitute 32% of the total population. This decrease benefited the category of borrowers aged 50 and over, whose proportion increased from 28% in 2006 to 39% in 2009. This age group is now in first place. Note also that, like the breakdown of the number of credit files by age, the distribution of outstanding amounts, according to the same criterion, shows a concentration on people aged between 40 and 49 and over 50, with respective proportions of 31 and 36%.
20% of borrowers earn more than 9,000 DH per month
The distribution of credit according to income shows that 55% of files are held by people whose income is less than 4,000 DH per month. This is a significant proportion, but it has decreased since 2006, when it reached 64%. This decrease mainly benefited people with a monthly income exceeding 9,000 DH. Their share in credit files is now 20%, while it was only 11% in 2006. Within this range, the distribution of files according to income has remained almost stable. Those who receive an income between 4,000 DH and 5,000 DH represent 9% of the total population (compared to 10% in 2006), those who earn between 5,000 DH and 7,000 DH account for 10% (compared to 9% in 2006), and those who earn between 7,000 DH and 9,000 DH per month represent 6%, the same as four years ago. Furthermore, the distribution of outstanding credit according to the same criterion shows that people with an income below 4,000 DH concentrated nearly 43% of these outstanding amounts, a decrease of one point compared to 2008, benefiting those earning more than 9,000 DH, whose share increased to 31%, compared to 30% in 2008.
Private sector employees have become less numerous than civil servants
The third criterion for the breakdown of consumer credit files is the socio-professional category. This ranking shows that civil servants have become the most numerous, with a share of 41%. They were more numerous in 2007, with a share of 43%, but they recovered after their share fell to 36% in 2008. Private sector employees come in second with a share of 36%. However, they constituted the most numerous borrower population in 2007 and 2008 with a share of 44%. This decrease has likely benefited retired borrowers, who now constitute 12% of the total population. Their share in 2006 was only 6%. Self-employed individuals hold 6% of credit files (compared to 3% in 2007), while craftsmen and traders represent 5% of borrowers, one point more than in 2007.
46% of borrowers are based in Casablanca and Rabat
Finally, the fourth criterion used by Bank Al-Maghrib is the location of borrowers. In this regard, the Greater Casablanca region occupies first place with 28% of credit files. It is followed by Rabat-Salé-Zemmour-Zaër, which is home to 18% of borrowers. The Marrakech region comes in third with 8% of credit files, just before Souss-Massa-Drâa, which accounts for 7% of the credits. The regions of Fès, Meknès and Tangier each have a weight of 6% in the total number of credit files, while the rest (21%) goes to the other regions of the Kingdom.
All this data, which Bank Al-Maghrib updates annually, was supplemented in 2008 by the results of a one-off survey conducted by the Professional Association of Financing Companies (APSF) to get an idea of the perceptions and expectations of consumer credit customers. The survey covered several criteria, such as credit usage, budget management, debt levels, and repayment periods. It mainly shows that 78% of borrowers hold 1 or 2 consumer credits, and that 22% have taken out more than two credits. The reasons why these people took out these loans are first the purchase of a car (first loan), household equipment (second loan), children's studies (third loan), and finally the repayment of a previous loan (fourth loan). Family celebrations, clothing, the purchase of a motorcycle, and religious holidays are the least recurring reasons among Moroccan borrowers.
Published July 12, 2010
Posted online July 13, 2010
lavieeco
Civil servants and employees represent more than three-quarters of borrowers. The proportion of retirees has doubled in two years.
People with incomes below 4000 DH make up half of the borrowers.
Who is borrowing more and who is using consumer credit less? Which socio-professional category repays its loans without incident, and which one presents a high risk? In the difficult context currently affecting the consumer credit sector, the answer to these questions is of major importance, both for financing companies, supervisory bodies, and the general public. In 2009, credit production contracted by 3.5% compared to 2008, to 16 billion DH. Non-performing loans, however, increased by 14.6% over the year, double the growth rate recorded in 2008, reaching 5.2 billion DH. And while 2010 was expected by credit companies to be a year of recovery, its first indicators remain unconvincing. Production in fact fell by 2.7% by the end of March 2010 compared to the same period in 2009, and non-performing loans increased by 9% to reach 4.8 billion DH.
The situation is therefore alarming, and the results of the Bank Al-Maghrib survey on the profile of consumer credit beneficiaries are timely. Recently published in the 2009 report of the banking supervision department, these results provide a comprehensive overview of borrowers in the consumer credit sector, allowing financing companies to take action to address current problems, such as focusing commercial and promotional actions on certain customer categories to revitalize activity, or avoiding certain profiles to reduce the rate of defaults.
The average outstanding amount per credit file is 27,000 DH
The trends revealed by the survey results are interesting in more than one way. First, the central bank reviewed the amounts borrowed by borrowers. It appears that the average outstanding amount per file was 27,000 DH in 2009, compared to 22,600 DH a year earlier, an increase of almost 20%. The average outstanding amount per auto loan file is 60,000 DH. While that for personal loans (unallocated loans) is 24,380 DH. Note that the average production per file in 2009 is higher than the outstanding amount. The average amount of new auto loans is indeed 120,000 DH, double the average outstanding amount. That for personal loans is 36,480 compared to an average outstanding amount of 24,380 DH. Ultimately, the overall average production per file in 2009 is 37,663 DH, 40% more than the average outstanding amount.
Now let's move on to the main results of the survey, which breaks down credit files according to four criteria. The first is the age of the borrowers. This segmentation reveals that only 8% of consumer credit beneficiaries are under 30 years old, and that this proportion remained stable between 2006 and 2009. Sociological explanation provided by Bank Al-Maghrib: "Moroccans rarely use consumer credit before forming a household." Borrowers aged 30 to 39 represent 21% of the total. This proportion is slightly down compared to 2006, when it was 23%. The proportion of forty-year-olds in credit files is still significant, but its trend has been downward for four years. While they represented 41% of borrowers in 2006, they now only constitute 32% of the total population. This decrease benefited the category of borrowers aged 50 and over, whose proportion increased from 28% in 2006 to 39% in 2009. This age group is now in first place. Note also that, like the breakdown of the number of credit files by age, the distribution of outstanding amounts, according to the same criterion, shows a concentration on people aged between 40 and 49 and over 50, with respective proportions of 31 and 36%.
20% of borrowers earn more than 9,000 DH per month
The distribution of credit according to income shows that 55% of files are held by people whose income is less than 4,000 DH per month. This is a significant proportion, but it has decreased since 2006, when it reached 64%. This decrease mainly benefited people with a monthly income exceeding 9,000 DH. Their share in credit files is now 20%, while it was only 11% in 2006. Within this range, the distribution of files according to income has remained almost stable. Those who receive an income between 4,000 DH and 5,000 DH represent 9% of the total population (compared to 10% in 2006), those who earn between 5,000 DH and 7,000 DH account for 10% (compared to 9% in 2006), and those who earn between 7,000 DH and 9,000 DH per month represent 6%, the same as four years ago. Furthermore, the distribution of outstanding credit according to the same criterion shows that people with an income below 4,000 DH concentrated nearly 43% of these outstanding amounts, a decrease of one point compared to 2008, benefiting those earning more than 9,000 DH, whose share increased to 31%, compared to 30% in 2008.
Private sector employees have become less numerous than civil servants
The third criterion for the breakdown of consumer credit files is the socio-professional category. This ranking shows that civil servants have become the most numerous, with a share of 41%. They were more numerous in 2007, with a share of 43%, but they recovered after their share fell to 36% in 2008. Private sector employees come in second with a share of 36%. However, they constituted the most numerous borrower population in 2007 and 2008 with a share of 44%. This decrease has likely benefited retired borrowers, who now constitute 12% of the total population. Their share in 2006 was only 6%. Self-employed individuals hold 6% of credit files (compared to 3% in 2007), while craftsmen and traders represent 5% of borrowers, one point more than in 2007.
46% of borrowers are based in Casablanca and Rabat
Finally, the fourth criterion used by Bank Al-Maghrib is the location of borrowers. In this regard, the Greater Casablanca region occupies first place with 28% of credit files. It is followed by Rabat-Salé-Zemmour-Zaër, which is home to 18% of borrowers. The Marrakech region comes in third with 8% of credit files, just before Souss-Massa-Drâa, which accounts for 7% of the credits. The regions of Fès, Meknès and Tangier each have a weight of 6% in the total number of credit files, while the rest (21%) goes to the other regions of the Kingdom.
All this data, which Bank Al-Maghrib updates annually, was supplemented in 2008 by the results of a one-off survey conducted by the Professional Association of Financing Companies (APSF) to get an idea of the perceptions and expectations of consumer credit customers. The survey covered several criteria, such as credit usage, budget management, debt levels, and repayment periods. It mainly shows that 78% of borrowers hold 1 or 2 consumer credits, and that 22% have taken out more than two credits. The reasons why these people took out these loans are first the purchase of a car (first loan), household equipment (second loan), children's studies (third loan), and finally the repayment of a previous loan (fourth loan). Family celebrations, clothing, the purchase of a motorcycle, and religious holidays are the least recurring reasons among Moroccan borrowers.
Published July 12, 2010
Posted online July 13, 2010
lavieeco
