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)