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Marginal uptick in mortgages credit extension Print E-mail
Wednesday, 07 October 2015

The National Credit Regulator (NCR) today 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 latest edition of the reports covers credit market information up to June 2015. Nomsa Motshegare, CEO of the NCR, states that the total value of new credit granted increased from R107.54 billion for the quarter ended March 2015 to R112.31 billion for the quarter ended June 2015, this was a quarter-on-quarter increase of 4.44%.

Motshegare advised consumers to continue to exercise the necessary caution, live within their financial means and borrow responsibly. Those experiencing financial distress must make arrangements with their credit providers or seek assistance from any registered debt counsellors.
The number of applications received for credit increased by 1,743,000 from 10.39 million in March 2015 to 12.13 million in June 2015, a quarter-on-quarter increase of 16.78%.

The following were some of the most significant trends observed in terms of credit granted for the quarter ended June 2015:

·         The value of new mortgages granted increased by R4.55 billion (14.35%) quarter-on-quarter and R3.11 billion (9.37%) year-on-year.
·         Secured credit, which is dominated by vehicle finance, decreased by R1.09 billion (2.92%) quarter-on-quarter but increased by R627.08 million (1.75%) year-on-year.
·         Credit facilities increased by R89.85 million (0.53%) quarter-on-quarter and R498.58 million (3.00%) year-on year.
·         Unsecured credit increased by R44.53 million (0.26%) quarter-on-quarter but decreased by R1.87 billion (9.70%) year-on year.

The total outstanding consumer credit balances (or gross debtor’s book) as at June 2015 was R1.63 trillion, representing an increase of 0.88% quarter-on-quarter and 3.57% year-on-year. The trends for outstanding balances for the quarter ended June 2015 were as follows:

·        Mortgages debtor’s book increased by R8.40 billion (0.99%) for the quarter ended June 2015, and R22.59 billion (2.72%) on a year-on-year basis.
·         Secured credit debtor’s book increased by R3.36 billion (0.95%) for the quarter ended June 2015. On a year-on-year basis the book grew by R16.71 billion (4.91%).
·         Credit facilities debtor’s book increased by R4.05 billion (1.95%) for the quarter ended June 2015, and R16.27 billion (8.33%) on a year-on-year basis.
·        Unsecured credit debtor’s book decreased by R3.97 billion (2.38%) for the quarter ended June 2015 and R9.53 billion (5.53%) on a year-on-year basis.

Credit bureaus held records for 23.37 million credit-active consumers, an increase of 1.1% when compared to the 23.11 million in the previous quarter. Consumers classified in good standing increased by 139,000, to 12.84 million consumers. As a percentage of the total number of credit-active consumers at 54.9%, this reflects a decrease of 0.1% quarter-on-quarter and 0.1% year-on-year.

The number of consumers with impaired records has increased by 124,000 from 10.41 million to 10.53 million. The number of accounts increased from 82.04 million in the previous quarter to 82.17 million for the quarter ended June 2015. The number of impaired accounts decreased from 22.38 million to 21.71 million when compared to the previous quarter, a decrease of 670,000 quarter-on-quarter and 429,000 year-on-year.
A total of 412.77 million enquiries were made on consumers’ credit records, an increase of 22.8% quarter-on-quarter and increase of 12.9% year-on-year. Enquiries initiated by consumers accounted for 13.23 million of all enquiries, an increase of 3.6% quarter-on-quarter and 13.3% year-on-year. The number of credit reports issued to consumers increased to 157,250. Of the total credit reports issued, 65.5% (102,967) were issued without charge, and the remaining 34.5% (54,283) were issued with charge. There were 27,988 disputes lodged on information held on consumer credit records for the quarter ended June 2015, an increase of 22.2% quarter-on-quarter and 31.2% year-on-year.
Motshegare encourages consumers to get copies of their credit reports and to challenge any incorrect information on their credit reports with the respective bureaus. “Consumers are entitled to one free credit report annually from the bureaus. If they need more reports within the same year, they can pay an amount that does not exceed R20 excluding VAT”, concludes Motshegare.
(Source - NCR Media Release)


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