Growth in outstanding credit balances in the South African household sector was recorded at 2,1% year-on-year (y/y) at the end of June 2016, with this low growth to some extent the result of data distortions in especially certain unsecured credit balances. The value of household credit balances amounted to R1 469 billion at end-June.
Growth in household mortgage balances continued its declining trend up to end-June, with growth recorded at 4,1% y/y after a recent peak of 4,9% y/y at the end of January this year.
The household sector is expected to continue experiencing a fair amount of financial strain over the next 6-12 months, which will contribute to continued subdued growth in household credit extension.
Read more here: Absa Credit and mortgage advances (Jun 2016)