Household credit and mortgage balances growth low in early 2018

The value of outstanding credit balances in the South African household sector, amounting to R1 548,9 billion at the end of January 2018, showed growth of 3,7% year-on-year over the 12-month period. Year-on-year growth in both secured and unsecured credit balances was in January marginally down on that of December 2017.

Growth in outstanding household mortgage balances (R925,1 billion, with a share of 77,9% in total household secured credit balances and 68,4% in total private sector mortgage balances) was unchanged at 3,5% year-on-year up to end-January from end-December.

Growth in total household credit balances and its sub-component of mortgage balances is forecast to remain in single-digit territory in 2018 on the back of trends in and the outlook for the economy, household finances and consumer confidence.

Read more here: Absa – Credit & Mortgage Advances – January 2018