Research

Slight uptick in household credit and mortgage balances growth

Trends in South African household credit balances and its main components were as follows up to the end of April 2018:

  • Growth in the value of total outstanding household credit balances was marginally higher at 4,1% year-on-year (y/y) up to the end of April 2018 from 3,9% y/y at end-March.
  • Household secured credit balances increased by 3,8% y/y in the first four months of the year.
  • Growth in the value of household unsecured credit balances accelerated further to 5,1% y/y up to end-April from a recent low of 3,1% y/y at the end of December last year.
  • Outstanding private sector mortgage balances, which include both corporate and household mortgage balances, showed growth of 4,8% y/y up to the end of April.
  • Outstanding household mortgage balances recorded growth of 3,3% y/y at end-April (3,1% y/y at end-March).
  • Growth in household credit balances is forecast at just above 4% by year-end, with household mortgage balances projected to grow by almost 4% this year.

Read more here: Absa Credit and Mortgage Advances (Apr 2018)