The value of outstanding credit balances in the South African household sector increased by 4,5% to R1 475,3 billion in 2015, up from growth of 3,6% in 2014. Growth in both secured and unsecured credit balances saw a gradual uptick on a year-on-year basis in the last few months of 2015, which was to an extent the result of the base effect of somewhat slower growth during the corresponding months a year ago.
The value of outstanding household mortgage balances increased to R864,6 billion in the 12-month period up to end-December last year, recording growth of 4,4% y/y over this period compared with growth of 2,3% y/y at the end of 2014.
The higher lending rates effective from 29 January 2016 will contribute to further financial strain experienced by consumers, with the view that growth in household credit balances, including mortgages, is to remain well in single-digits this year.
Read more here: Credit and mortgage advances (Dec 2015)