TransUnion Q2 2019 Industry Insights Report

The Q2 2019 TransUnion Industry Insights Report (IIR) shows overall consumer credit balances continued to grow — up 4.5% compared to the same period a year ago — bringing total outstanding consumer credit to $1.88 trillion. Over the last 12 months, the number of consumers with access to credit also grew, up 1.7% year on year (YoY) in Q2 2019.

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90+Day Delinquency Rate YoY Changes for Non-Mortgage Loans

90+Day Consumer Delinquency Rate
Matthew Fabian

“Volatility in the oil sector has continued to plague Alberta and Saskatchewan.. This is partially a result of volatility in oil prices affecting production and employment. We’ve also observed an increase in revolving balances which can sometimes be an indicator of distressed borrowing.”

Matthew Fabian, Director, Research and Industry Insights

Average Consumer Balance, by Product*

Forcast

*Represents the average balance held by a consumer across each type of product (consumers can have multiple instances of same product)

The combination of low unemployment and interest rate stability boosted spending and fueled the credit market, as Canadian credit consumers continue to grow and build debt. The Canadian market reached $1.88 trillion in total credit balance (up 4.3% from prior year). This was partly driven by consumer credit demand — the number of consumers with access to credit increased 1.7% to $29.1MM.

“As concerns continue about the prospect of an economic downturn, Canadian credit consumers remain generally resilient with continued overall decrease in delinquency. While increased debt continues to grow, it’s growing at a slower pace than previous quarters, suggesting consumers are exercising some caution. A downturn in growth will put pressure on riskier consumers and may affect delinquency rates, especially in more vulnerable regions in Canada. Even in the more resilient segments, any economic slowdown could affect recent credit deleveraging.”

Matthew Fabian, Director, Research and Industry Insights

IIR Q2 2019: Insights

Press Release

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