Johannesburg - Growth in the total value of outstanding credit balances in the household sector slowed to 3.4 percent year-on-year at the end of December last year, the lowest level since early 2010, Absa said on Friday.
“Growth in household unsecured credit balances dropped further to a level last seen around mid-2010, while growth in secured credit balances was largely stable at a low level in the last four months of 2014,” the bank's property analyst, Jacques du Toit, said in a statement.
“Growth in outstanding household mortgage balances was only marginally up to 2.3 percent year-on-year at end-December last year, from 2.2 percent year-on-year, and two percent year-on-year at end-November and end-October respectively.”
Economic developments, and the resulting impact on household finances and consumer confidence, would affect household credit and its various components.
Growth in household credit balances, including mortgage balances, was forecast to remain in single digits this year.
This was despite economic growth forecast to pick up this year, lower inflation on the back of decreasing international oil and domestic fuel prices, and interest rates projected to rise only later in the year.
Sapa