Consumer Delinquencies at Lowest Level Since Pre-Recession According
to Equifax Canada
TORONTO, ONTARIO -- (Marketwire) -- 11/06/12 -- According to Equifax
Canada's (NYSE:EFX) Q3 Quarterly Credit Trends Report, as of
September 30, 2012, consumer delinquencies have dropped to 1.22 per
cent, the lowest level since before the financial crisis.
The report also reveals that total Canadian non-mortgage debt
increased slightly by 1.8 per cent since last year.
Furthermore, credit card balances continue to decrease, while other
credit products such as bank loans and lines of credit show very
moderate growth compared to the same period last year.
The greatest increase was captive Auto Finance loans, which grew by 9
per cent over last year. The report revealed the Auto Finance loans
have the lowest level of delinquency.
"To see serious delinquencies drop to a record low of 1.22 per cent
is a very positive sign that consumers are doing a great job at
managing their debt obligations," says Nadim Abdo, Vice President,
Consulting Solutions, Equifax Canada. "The growth in credit over the
past two years has slowed down significantly and the Canadian
appetite for new credit has also diminished. According to Equifax's
Credit Seeking Index, which measures the velocity at which consumers
are seeking new credit facilities, consumer demand for new credit now
is 9 per cent lower than it was prior to the financial crisis."
Cristian deRitis, Senior Director of Consumer Credit Economics at
Moody's Analytics commented on the report by adding "Consumer credit
conditions in Canada remain stable and are in line with Moody's
Analytics projections for GDP growth and unemployment. Debt levels
and available credit continue to rise, though at a slower pace than
several years ago. Balances are declining for credit cards, personal
finance and sales finance loans as borrowers turn to bank installment
loans and lines of credit to meet their needs. Auto financing
continues to experience rapid expansion as Canadians flock to dealer
lots and showrooms," deRitis explained.
Other Equifax Report observations:
-- Average consumer non-mortgage indebtedness in Q3/2012 increased by 2.6
per cent in the last 12 months, compared to a growth of 4.4 per cent in
the same period last year;
-- Average credit card debt has continued to decrease for the past eight
quarters; it decreased by 3.6 per cent in Q3/2012 from the same period
-- Average bank installment loans grew by 4 per cent over same period last
year and average bank revolving loans (lines of credit) remained stable;
-- 90-day delinquencies continue to improve and have decreased to a rate of
1.22 per cent; and
-- Consumer bankruptcies slightly increased slightly by 5 per cent from the
same period last year.
For detailed graphs, please go to:
Equifax is a global leader in consumer and commercial information
solutions, providing businesses of all sizes and consumers with
information they can trust. We organize and assimilate data on more
than 500 million consumers and 81 million businesses worldwide, and
use advanced analytics and proprietary technology to create and
deliver customized insights that enrich both the performance of
businesses and the lives of consumers.
Headquartered in Atlanta, Equifax operates or has investments in 17
countries and is a member of Standard & Poor's (S&P) 500(R) Index.
Its common stock is traded on the New York Stock Exchange (NYSE)
under the symbol EFX. For more information, please visit
For Equifax media inquiries only, please contact:
Hunter LaVigne Communications Inc.
Mark LaVigne, APR, FCPRS
(905) 841-2017 (office) or (416) 884-2018 (cell)
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