Uptick in household credit and mortgage balances growth

Growth in outstanding credit balances in the South African household sector (R1 708 billion) was marginally higher at 6,8%  year-on-year up to the end of September 2019 from 6,7% year-on-year at end-August.

Both secured and unsecured household credit balances showed somewhat higher growth in the first nine months of the year compared with growth as at the end of August. Growth in the value of outstanding household mortgage balances (R997,2 billion) increased to 5% y/y at end-September from 4,9% y/y at end-August.

The demand for and growth in household credit and mortgage balances will continue to be driven by macroeconomic trends, the state of household finances, consumer confidence and property market sentiment in general. Household credit balances growth is forecast at 7,1% by end-2019, with mortgage balances growth projected to end the year at a level of 5%.