CONSUMER FINANCING

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
Jan 24 - 30, 2011

SEGEMENT WISE ADVANCES AND NPLS (billion Rupees)

ITEMS

JUN-10

SEP-10

LOANS

SHARE IN LOANS

NPLS

RATIO

LOANS

SHARE IN LOANS

NPLS

RATIO

Corporate Sector

2,179.38

61.09

289.22

13.27

2,184.54

62.09

314.23

14.38

SMEs Sector

328.51

9.21

89.01

27.09

318.00

9.04

92.03

28.94

Agriculture Sector

164.74

4.62

27.16

16.49

168.43

4.79

31.30

18.59

Consumer sector

270.23

7.57

39.79

14.73

265.67

7.55

41.74

15.71

Credit cards

28.90

0.81

4.60

15.93

27.45

0.78

4.90

17.84

ii. Auto loans

65.27

1.83

5.85

8.96

61.68

1.75

6.11

9.90

iii. Consumer durable

1.02

0.03

0.14

13.65

1.23

0.03

0.12

9.52

iv. Mortgage loans

73.12

2.05

13.62

18.63

67.57

1.92

14.17

20.97

v. Other personal loans

101.92

2.86

15.58

15.29

107.74

3.06

16.45

15.27

Commodity financing

484.63

13.58

3.68

0.76

437.60

12.44

3.29

0.75

Staff Loans

76.92

2.16

0.98

1.27

76.98

2.19

1.04

1.35

Others

63.19

1.77

10.00

15.83

67.28

1.91

10.37

15.42

Total

3,567.60

100.00

459.84

12.89

3,518.49

100.00

494.01

14.04


SEGMENT WISE ADVANCES (DOMESTIC OPERATIONS)
(BILLION RUPEES)

. DEC-07 DEC-08 SEP-09 DEC-09 JUN-10 SEP-10
Others 21 13 8 8 6 9
Staff Loans 52 65 72 74 77 77
Commodity Finance 148 235 399 419 484 437
Consumer Finance 371 332 280 269 246 242
Agriculture 151 155 154 156 164 168
SMEs 437 375 319 348 318 308
Corporate Sector 1,520 2,016 1,954 2,065 2,046 2,049
Total Advances 2,701 3,192 3,186 3,339 3,341 3,289

CONSUMER FINANCING PORTFOLIO OF BANKS
(DECEMBER 2006 AND JUNE 2007)

YEAR

PORTFOLIO

CREDIT
CARDS

AUTO
LOANS

CONSUMER
DURABLES

MORTGAGE
LOAN

OTHER
PERSONAL
LOANS

TOTAL

Dec 2006

Amount (Rs. In Mn)

39,243.1

104,057. 2

1,301.5

49,245.4

131,324.2

325,171.4

No. of Borrowers

1,207,885

253,097

59,082

24,313

1,310,371

2,689,736

June 2007

Amount (Rs. In Mn)

44,460.5

107,575.7

1,003.6

58,052.2

143,286.0

354,378.1

No. of Borrowers

1,615,569

265,876

55,139

24,007

1,383,847

3,211,117


MONTHLY MARK-UP RATE ON AUTO LOANS (%)

Alfalah Bank 15.5
Askari 15.5
Dawood 14.46
HMP 14.5
KASB 14.5
Soneri 15
ABN Amro 16

VARIATION IN MARK UP ON PERSONAL LOANS (%)

NBP 15
HMP 19
KASB 11.5
MCB 12
Soneri 15
ABN Amro 23
HSBC 12
Source: CRCP telephonic survey of banks, April 3, 2008

GROWTH IN CONSUMER FINANCING (% )

PORTFOLIO JULY 2007 JAN 2008
Mortgage Loans 15.5 17.6
Credit Cards 19.2 6.9
Auto Finance 8.0 6.0
Personal Loans 7.9 3.0
All 10.4 6.6

CONSUMER FINANCE SHARE IN TOTAL LOANS

YEARS BN RS PERCENT
2004 130 9
2005 330 12.8
2006 380 13.8
2007 400 14
2008 300 12

PAKISTAN: CREDIT/LOANS CLASSIFIED BY PERSONAL (Mn Rs)

DESCRIPTION JUN-2009 DEC-2009 JUN-2010 DEC-2010
Personal 364,141 339,880 321,478 306,025
Bank Employees 69,828 73,987 76,668 77,537
Consumer Financing 294,313 265,893 244,810 228,488
For house building 61,222 57,730 54,500 51,112
For transport i.e. purchase of car etc 78,151 69,463 64,199 57,039
Credit cards 35,533 31,257 28,280 25,799
Consumers durable 420 280 211 226
Personal loans 115,981 103,959 94,776 90,379
Other 3,006 3,203 2,844 3,932

PAK: INTEREST RATES

MONTHS/ YEARS RATE (%)
1-Aug-07 10
31-Jan-08 10.5
23-May-08 12
30-Jul-08 13
13-Nov-08 15
15-Aug-09 13
25-Nov-09 12.5
10-Aug 13
0ct-10 13.5
10-Nov 14

SHARE OF PRODUCTS IN TOTAL CONSUMER FINANCING PORTFOLIO

Personal Loans 40.40%
Mortgage Loans 16.39%
Auto Loans 30.36%
Credit Cards 12.55%
Source: Banking Surveillance Department, Quart Perf. Review of the Banking Sys. Jun-07

PATTERNS OF ACCESS TO PERSONAL LOANS

Current borrowers 55.1%
Previous borrowers 15.7%
Borrowers whose applications were rejected 29.2%
Source: According to the CRCP survey.

SEGMENTWISE BREAKUP OF FINANCING

ITEMS

JUN-10

SEP-10

FINANCING

SHARE

FINANCING

SHARE

Corporate Sector

100.7

61.5

101.6

63.5

SMEs

11.0

6.7

10.7

6.7

Agriculture

0.0

0.0

0.0

0.0

Consumer Finance:

32.0

19.5

29.1

18.1

Credit Cards

0.0

0.0

0.0

0.0

Auto Loans

14.4

8.8

14.7

9.2

Consumer Durable

0.0

0.0

0.0

0.0

Mortgage Loan

17.1

10.4

13.8

8.6

Other personal Loans

0.5

0.3

0.5

0.3

Commodity Financing

16.4

10.0

14.8

9.3

Staff Loans

3.1

1.9

3.2

2.0

Others

0.5

0.3

0.6

0.4

Total

163.8

100.0

160.1

100.0

(amount in billion Rupees, share in percent)