Continued steady growth in household credit and mortgage balances

Posted On Friday, 30 August 2019 23:27 Published by
Rate this item
(0 votes)

In the first seven months of 2019 outstanding credit balances in the South African household sector (R1 687,8 billion) increased by 6,3% year-on-year (y/y), with growth slightly down from 6,5% y/y up to the end of June.

Jacques_Du_Toit_Absa_Home_Loans

Household secured credit balances (R1 276,3 billion and 75,6% of total household credit balances), which includes mortgage, leasing and instalment sales balances, recorded growth of 5,1% y/y in the 7-month period up to end-July, which was marginally down from 5,3% y/y at end-June.

Mortgage balances growth was also slightly lower at end-July from end-June (see below). Growth in instalment sales balances (R287,2 billion and 22,5% of total household secured credit balances) slowed down further to 7% y/y at end-July from a recent peak of 8,3% y/y at end-April. Growth in household unsecured credit balances (R411,6 billion and 24,4% of total household credit balances) was unchanged at 10,4% y/y at end-July from end-June.

Growth in general loans and advances growth came to 11,2% y/y at end-July, with credit card balances rising by 11,1% y/y. Overdraft balances growth slowed down further to 4,6% y/y at the end of July from a recent high of 7,6% y/y at end-May. Outstanding private sector mortgage balances (R1 456,6 billion and 38,5% of total private sector credit balances of R3 787,8 billion), which include both corporate and household mortgage balances, increased at a rate of 5,2% y/y up to end-July. Growth in the value of outstanding household mortgage balances (R987,5 billion and 77,4% of total household secured credit balances and 67,8% of total private sector mortgage balances) came to 4,6% y/y at end-July (4,7% y/y at end-June).

The value of mortgage balances is the net result of all property transactions related to mortgage loans, including additional capital amounts paid into mortgage accounts and extra monthly payments above normal mortgage repayments. Developments on the front of the macro economy, as well as household sector finances, consumer confidence and property market sentiment will be the driving factors of growth in household credit and mortgage balances, which is forecast at 5,9% and 4,3% respectively for the full year.

Last modified on Friday, 30 August 2019 23:33

Most Popular

Attacq Ltd and Tricolt break ground on Ellipse Waterfall

Aug 30, 2019
 13 2
Today Attacq Ltd the JSE listed REIT developing Waterfall City, and Waterfall Logistics…

Tshwane Regional Mall Grand Opening date set

Aug 31, 2019
  TSHWANE REGIONAL  MALL
24th October 2019, the long-awaited day earmarked for the grand opening of Tshwane…

Eris Property Group appoints successive CEO Barend de Loor

Aug 30, 2019
 BAREND DE LOOR
Eris Property Group has appointed a new Chief Executive Officer (CEO). Barend de Loor…

Cap Rates and Property Values - Is it time for a more significant move?

Aug 19, 2019
FNB John Loos
A few months on from the May general election, a somber mood is once again settling in in…

Eleven new retailers including clicks at morningside shopping centre

Aug 19, 2019
 MORNINGSIDE SHOPPING CENTRE 1
Known for the finest in convenience shopping and its chic and stylish mix of local and…

Please publish modules in offcanvas position.