Further uptick in household credit and mortgage balances growth

Growth in the value of outstanding credit balances in the South African household sector was on a rising trend in the first seven months of 2018, with these balances amounting to a total of R1 587,5 billion at the end of this period.

Both secured and unsecured credit balances growth accelerated further up to July, which contributed total household credit balances growth rising to 4,8% year-on-year in the seven month period, from 3,7% year-on-year at end-January.

Growth in outstanding household mortgage balances (R944,2 billion, with a share of 77,8% in total household secured credit balances and 68,2% in total private sector mortgage balances) came to 3,7% year-on-year at end-July from 3,6% year-on-year at end-June and a recent low of 3,1% year-on-year at end-March this year.

Against the background of trends in and prospects for the economy, household finances and consumer confidence, household credit balances are forecast to show growth of around 4,5% for the full year of 2018, with household mortgage balances growth projected at about 3,5% for the year.

Read more here: Absa: credit and mortgage advances (Jul 2018)