Continued moderate growth in household credit and mortgage balances

Growth in the value of outstanding credit balances in the South African household sector, which amounted to R1 610,2 billion at the end of October this year, remained on a gradual rising trend from 3,7% year-on-year at end-January to 5,2% year-on-year at end-October this year. While growth in household secured credit balances was on a slight upward trend up to October, it was the component of unsecured credit balances that showed a noticeable rising trend in growth over the 10-month period.

Growth in outstanding household mortgage balances (R953,4 billion, with a share of 77,6% in total household secured credit balances and 68,2% in total private sector mortgage balances) was steady at 3,8% year-on-year up to end-October from 3,7% year-on-year at end-August and 3,9% year-on-year at end-September.

Household credit and mortgage balances growth is expected to remain round current levels up to year-end and into next year, driven by trends in the economy, household finances and consumer confidence.

Read more here: Absa – Credit and Mortgage Advances – October 2018