Credit extension marginally slows down
Today, the National Credit Regulator (NCR) released the Consumer Credit Market Report (CCMR) and the Credit Bureau Monitor (CBM), which are based on data submitted by the registered credit providers and credit bureaus respectively. The latest edition of the reports covers credit market information from April 2022 to June 2022. The total value of new credit granted decreased by 1.13% quarter-on-quarter from R159.16 billion to R157.37 billion. The number of credit agreements entered into increased by 4.68% quarter-on-quarter from 3.83 million to 4.01 million.
The following were some of the most significant trends observed in terms of credit granted for the quarter ended June 2022:
· The value of new mortgages granted increased by R1.80 billion (3.22%) quarter-on-quarter and by R916.13 million (1.62%) year-on-year.
· Secured credit which is dominated by vehicle finance, decreased by R2.27 billion (4.78%) quarter-on-quarter, and increased by R1.96 billion (4.55%) year-on-year.
· Credit facilities decreased by R441.79 million (1.79%) quarter-on-quarter and increased by R3.43 billion (16.47%) year-on year.
· Unsecured credit increased by R292.42 million (1.10%) quarter-on-quarter and by R4.53 billion (20.18%) year-on-year.