Growth in outstanding credit balances in the South African household sector was relatively stable at a level of 4,6% year-on-year at the end of the first quarter of 2016. The value of these credit balances came to R1 495,7 billion at the end of March, which was only marginally higher compared with end-February. Year-on-year growth in secured credit balances was down at end-March, whereas growth in unsecured credit balances was somewhat higher over the same period.
Consumers are in general expected to experience increased financial pressure this year, which will impact their credit-risk profiles, financial vulnerability and levels of confidence. These trends, together with credit providers’ continued focus on risk appetite and lending criteria, will cause growth in household credit extension to remain relatively low, with the risk of growth slowing down further from current levels.
Read more here: Credit and mortgage advances (Mar 2016)