Consumer credit continues to stabilise, and unsecured lending shrinks further
bdlive.co.za - Oct 6th 2016, 11:37
CONSUMER debt appears to be stabilising further, and credit issuers appear to be adopting a more cautious approach, data from the National Credit Regulator (NCR) suggest.
While the total debt owed by consumers in SA rose slightly in the June quarter — increasing by 0.31% from the March quarter to R1.66-trillion — the unsecured debtors book shrank during the quarter and grew only very slightly from a year earlier, two reports from the NCR showed on Thursday.
The NCR released the Consumer Credit Market Report (CCMR) and the Credit Bureau Monitor (CBM)‚ which are based on data submitted to the NCR by registered credit providers and credit bureaus respectively.
The rise in the total outstanding debt‚ also known as the gross debtors book‚ showed an increase of 2.35% from a year earlier.
Consumers’ indebtedness has been a factor in SA’s slow economic growth, as it has constrained household spending.
The trends for outstanding balances for the quarter to end-June were as follows:
• The mortgages debtors book increased by R2.7bn (0.31%) for the quarter ended June 2016 and by R9.12bn (1.06%) year on year.
• The secured credit debtors book increased by R4.08m (1.1%) for the quarter ended June 2016. Year on year‚ the book grew by R17.52bn (4.91%).
• The credit facilities debtors book decreased by R206.14m (0.09%) for the quarter ended June 2016 but increased by R7.47bn (3.53%) from a year earlier.
• The unsecured credit debtors book decreased by R2.44bn (1.48%) for the quarter ended June 2016 but increased by R49.37m (0.03%) year on year.
• The number of applications for credit fell 0.39% quarter on quarter, from 9.99-million in March to 9.95-million in June. The total value of new credit granted was marginally lower, falling 0.01% quarter on quarter from R108.33bn to R108.32bn.
• Credit bureaus held records for 24.08-million credit-active consumers‚ an increase of 0.85% from 23.88-million in the previous quarter. Consumers classified in good standing increased by 79,000 to 14.41-million consumers.
• The number of accounts decreased from 84.96-million in the previous quarter to 84.56-million for the same period. The number of impaired accounts increased 314,000 when compared with the previous quarter‚ from 19.92-million (23.45%) to 20.24-million (23.93%). Year on year, that was an increase of 1.47-million.From DFM Publishers (Pty) Ltd.
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