The value of outstanding credit balances in the South African household sector increased by 0,6% year-on-year (y/y) to R1 505,4 billion in the first quarter of 2017. This growth in household credit balances is the result of continued low growth in secured credit balances, whereas the component of unsecured credit balances contracted on the back of data distortions.
Growth in the value of outstanding private sector mortgage balances (R1 304,8 billion and 39,2% of total private sector credit balances), which include both corporate and household mortgage balances, came to 4,6% y/y at the end of March 2017. Outstanding household mortgage balances (R901,6 billion and 78,2% of total household secured credit balances and 69,1% of total private sector mortgage balances) increased 3,0% y/y up to the end of March.
The impact of the recent country credit downgrades on the economy and the household and business sectors is still very much uncertain and will only become evident over time. Growth in household credit balances, including mortgage balances, is expected to remain subdued in the rest of the year against the background of current trends in and prospects for the economy, household sector finances and consumer confidence.
Read more here: Credit & Mortgage Advances March 2017