The value of outstanding credit balances in the South African household sector increased by 4,6% year-on-year (y/y) to R1 485,1 billion at the end of January 2016. Growth in secured and unsecured credit balances was largely stable in the first month of the year from end-2015.
The value of total outstanding mortgage balances, comprising household and corporate mortgages, increased by 6% y/y to a level of R1 232 billion (39,7% of total private sector credit balances of R3 104,6 billion) at end-January 2016. Corporate mortgage balances showed growth of 9,6% y/y to R364,2 billion at the end of January. Outstanding household mortgage balances increased by 4,5% y/y to R867,8 billion (70,4% of total mortgage balances and 28% of total private sector credit balances) at end-January.
In view of factors such as expected low economic and employment growth, rising inflation and higher interest rates during the course of 2016, growth in household credit balances and the various secured and unsecured components of household credit is forecast to remain in single digits this year.
Read more here: Credit and mortgage advances (Jan 2016)
