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Mid Cap
Market Cap £1.35bn
Enterprise Value £3.19bn
Revenue £517.8m
Position in Universe 157th / 2677

Canadian consumers pile on more debt in third quarter -TransUnion

Thu 10th November, 2016 5:14pm
OTTAWA, Nov 10 (Reuters) - Canadians took on more consumer 
debt in the third quarter, and the delinquency rate rose, a 
major credit report provider said on Thursday in a report that 
was likely to increase policymaker's concerns about household 
borrowing levels. 
    Non-mortgage debt balances averaged C$21,686 ($16,084) in 
the quarter, up 2.3 percent from a year earlier, TransUnion's 
report showed.  
    TransUnion forecast that debt levels would rise to C$21,747 
by the end of next year and could hit C$22,000 by the end of 
    Outstanding debt increased among most types of loans, 
including credit cards and installment plans, the report said. 
    The Canadian government's recent downgrade of its economic 
outlook may have led some consumers to believe interest rates 
will remain low for a long time, and could prompt them to borrow 
more, said Jason Wang, TransUnion's director of research and 
analysis in Canada. 
    "It's especially important for lenders to continue 
monitoring and stress-testing their portfolios to ensure they 
can maintain stable performance when interest rates do 
eventually rise," Wang said.  
    The Canadian economy, which is heavily dependent on the 
energy sector, has struggled to gain sustainable momentum since 
it was hit by a drop in oil prices last year.      
    Earlier this month, the government cut its economic 
projections for the next several years.*:nL1N1D21S4 
    Years of low interest rates since the global financial 
crisis have led to an increase in consumer borrowing in Canada 
and fueled the hot housing market. 
    Household debt as a share of income was at a record high in 
the second quarter, and the Bank of Canada has flagged such 
imbalances as a potential vulnerability for the financial 
    While the TransUnion report showed the delinquency rate 
edged up from a year ago, it was still at a modest 2.70 percent 
in the third quarter, up from 2.62 percent a year earlier. 
    That suggests Canadians have largely been able to manage 
their debt so far, said Wang. 
    The biggest increases were in the provinces of Alberta and 
Saskatchewan, which have suffered from the downturn in commodity 
prices. The amount of loans that were 90 days or more past due 
stood at 3.13 percent in Alberta and 3.46 percent in 
     ($1 = C$1.3483) 
 (Reporting by Leah Schnurr; Editing by Lisa Von Ahn) 
 ((; +1 613 788 8203; Reuters 
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