30 Sep.
Absa mortgage advances: Noticeable slowdown in growth in mortgage advances and total household credit.
Based on data released by the South African Reserve Bank, growth in credit extended to the domestic household sector came to 5,2% year-on-year (y/y) in August 2011 (6,6% y/y in July). On a month-on-month basis the amount of household credit was down by R361 million, or a marginal 0,03%, to R1 137,8 billion in August.
The abovementioned trends in household credit growth up to August this year were the net result of some components (instalment sales and leasing finance) declining from July to August, while mortgage advances showed only marginal growth from its July level (see below). Mortgage advances (67,4% of household credit) and instalment sales credit (13,4% of the total) are the largest components of household credit, followed by general loans and advances (mainly personal and micro loans) with a share of 11,2% in August. The component of general loans and advances is growing at a pace of well above 30% y/y since the beginning of 2011.
Growth in the value of outstanding private sector mortgage balances at monetary institutions, comprising both commercial and residential mortgage loans, slowed down to only 1,9% y/y in August (2,9% y/y in July). The value of total mortgage balances was R1,3 billion, or 0,1%, higher in August compared with July this year.
The value of outstanding mortgage balances in the household sector amounted to R767,3 billion in August 2011, rising by only 1,4% y/y. On a monthly basis, outstanding balances with regard to household mortgages were up by a negligible R80 million, or just 0,01%, in August from July. …
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