03 May.
According to the South African Reserve Bank, the total value of outstanding credit balances in the country’s household sector increased by 7,4% year-on-year (y/y) and 0,8% month-on-month (m/m) to a level of R1 127,8 billion in March 2011. Year-on-year growth of 7% was recorded in February this year. Total household credit comprises instalment sales agreements, leasing finance, mortgage advances, overdrafts, credit card debt, and general loans and advances.
Growth in the total value of outstanding mortgage balances at monetary institutions, comprising both commercial and residential mortgage loans, tapered off to 2,9% y/y in March 2011, which was the lowest year-on-year growth on record since 1966. On a monthly basis total mortgage balances were down by R1,6 billion, or 0,2%. With outstanding mortgage balances in the corporate sector having a share of 26,5% in the March total of R1 046 billion, a decline of 0,7% y/y (-2,1% on a monthly basis) in this component of mortgage finance contributed to the abovementioned record-low growth of 2,9% y/y in March this year.
Outstanding mortgage balances in the household sector, largely related to residential property, recorded growth of 4,3% y/y in March 2011 (4,1% y/y in February), increasing by R4,5 billion, or 0,6%, from February.
Source: Absa Economic Research
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