October 12, 2013

Credit growth surprises market The growth of 1.6% (R39bn) in private sector credit during the month of August surprised market economists as the previous recording was a decline of 0.3% (R7bn) in July 2013. On an annual basis, private sector credit grew by 8.2% whilst the market expected just 7.2%. The major contributors were the increases in corporate credit which grew by over R30bn month on month and a renewed mortgage sector which added around R7bn to credit growth extension. This is the highest growth in mortgage loans since 2010. The mortgage sector credit growth shows consumers have returned to the local property market but the levels of credit extension are still restrained relative to the heydays between 2005 and 2008. Over the past 12 month mortgage credit has risen by a total of just over R22bn, which is still... Read More