The value of outstanding credit balances in the South African household sector (R1 564,1 billion at the end of March) showed growth of 3,9% year-on-year (y/y) up to the end of the first quarter of 2018. Year-on-year growth in secured credit balances was marginally lower at end-March, whereas growth in unsecured credit balances accelerated somewhat up to the end of the first quarter. Growth in outstanding household mortgage balances (R929,9 billion, with a share of 77,8% in total household secured credit balances and 68,2% in total private sector mortgage balances) remained on a gradual downward trend to 3,1% y/y up to end-March this year after reaching a level of 3,6% y/y at the end of November last year.
Although lending rates were lowered by 25 basis points in late March, consumer finances will be adversely affected by factors such as higher taxes and some major fuel price hikes. Growth in household credit balances, including mortgage balances, is forecast to remain in single-digit territory in the rest of the year.
Read more here: Absa credit and mortgage advances (March 2018)
