Credit Regulator shows

Marginal increase in credit extension

Credit regulator shows a marginal increase in credit extension.

The National Credit Regulator (NCR) recent Consumer Credit Market Report and Credit Bureau Monitor show a marginal increase in the value of new credit granted.

These latest reports are based on the data submitted to the NCR by registered credit providers and credit bureaus respectively and cover credit market information up to December 2013.

Credit bureaus held records for 20.64 million credit-active consumers, an increase of 1.8 percent when compared to the 20.29 million in the previous quarter. Consumers classified in good standing increased by 184,000 to 10.71 million consumers.

The National Credit Regulator (NCR) recent Consumer Credit Market Report and Credit Bureau Monitor show a marginal increase in the value of new credit granted.

The number of consumers with an impaired record has increased by 171,000 to 9.93 million, from 9.76 million in the previous quarter. The percentage total of credit-active consumers stands at 48.1 percent.

The number of accounts increased from 71.17 million in the previous quarter to 73.18 million. The number of impaired accounts increased from 19.25 million to 19.74 million when compared to the previous quarter, an increase of 493,000 quarter-on-quarter and 2.22 million year-on-year.

The total value of new credit granted increased by R1.45 billion (1.24 percent) from R117.21 billion for the quarter ended September 2013 to R118.66 billion for the quarter ended December 2013. There was an overall quarter-on-quarter growth for all credit types with the exception of "Developmental" credit and Short-Term credit. The number of applications received for credit increased by 525,000 from 10.22 million in September 2013 to 10.75 million in December 2013, an increase of 5.14 percent quarter-on-quarter and a decrease of 9.02 percent year-on-year.

The following were some of the most significant trends observed in terms of credit granted for the quarter ended December 2013:

  • The value of new mortgages granted increased by 0.57 percentquarter-on-quarter from R34.52 billion to R34.72 billion.
  • Secured credit, which is dominated by vehicle finance, increased from R39.91 billion for September 2013 to R40.48 billion for December 2013, a quarter-on-quarter increase of 1.67 percent.
  • Credit facilities, consisting mainly of credit cards, store cards and bank overdrafts, had an increase of 5.52 percentquarter-on-quarter from R17.72 billion to R18.70 billion.
  • Unsecured credit increased from R20.90 billion for September 2013 to R21.61 billion for December 2013, a quarter-on-quarter increase of 3.43 percent.
  • Short-term credit decreased from R1.39 billion for the quarter ended September 2013 to R1.38 billion for the quarter ended December 2013, a decrease of 1.21 percent.
  • Developmental credit had a quarter-on-quarter decrease of 39.46 percent from R 2.77 billion to R 1.68 billion.
  • As at December 2013, the total outstanding consumer credit balances (or gross debtors' book) was R1.52 trillion, representing a quarter-on-quarter growth of 1.79 percent and a year-on-year growth of 5.33 percent.
  • The trends for outstanding balances for the quarter ended December 2013 were as follows:
  • Mortgages debtor's book increased from R809.89 billion for the quarter ended September 2013 to R818.06 billion for the quarter ended December 2013, an increase of 1.01 percent.
  • Secured debtor's book, which is dominated by vehicle finance, increased from R311.67 billion for September 2013 to R323.11 billion for December 2013, a quarter-on-quarter increase of 3.77 percent.
  • Credit facilities debtor's book, which consists mainly of credit cards, store cards and bank overdrafts, had a quarter-on-quarter increase of 3.04 percent from R179.90 billion to R185.37 billion.
  • Unsecured credit debtor's book increased from R167.41 billion for September 2013 to R170.75 billion for December 2013, a quarter-on-quarter increase of 2.00 percent.
  • Short-term credit debtor's book decreased from R817.41 million for the quarter ended September 2013 to R791.29 million for the quarter ended December 2013, a decrease of 3.19 percent.
  • Developmental credit debtor's book decreased from R23.96 billion for the quarter ended September 2013 to R21.95 billion for the quarter ended December 2013, a decrease of 8.38 percent.
  • The banks' share of the total outstanding consumer credit as at December 2013 was R1.30 trillion (85.40 percent), retailers at R34.99 billion (2.30 percent), non-bank vehicle financiers at R55.28 billion (3.64 percent), and "other credit providers" at R131.67 billion (8.66 percent). Other credit providers consist primarily of pension-backed lenders, insurers, non-bank mortgage lenders and securitised debt.


National Credit Regulator (011) 554-2722