Continued low household credit and mortgage balances growth

Growth in the value of outstanding credit balances in the South African household sector was recorded at 3,9% year-on-year (y/y) at the end of February 2018. Year-on-year growth in secured credit balances was marginally lower at end-February, whereas growth in unsecured credit balances was up by around one percentage point compared with that of end-January. Growth in outstanding household mortgage balances was recorded at 3,3% y/y up to end-February.

Although lower lending rates will bring some financial relief to indebted consumers, growth in household credit balances, including mortgage balances, is forecast to remain well in single-digits in the rest of the year.

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