Finance: The Consumer Credit Market Worth R1.12 Trillion
Recent Gauteng Business News
This is the first report on data collected from credit providers and covers the data from the primary national credit providers, representing an estimated 90% of all consumer credit.
The total value of new credit agreements entered into declined from R80.71 billion to R76.98 billion for the quarters ended March 2008 to June 2008. This represents a drop of 4.6% in credit extension for these two reporting quarters. There were 2.187 million new applications for credit as at June 2008 compared to 2.177 million as at March 2008.
Of the R76.98 billion credit granted during the June 2008 quarter, R42.70 billion or 55.5% was for Mortgages. New Mortgages granted declined by 4.3% from R44.62 billion to R42.70 billion between the March and June 2008 quarters. The next biggest credit category is “Other Credit Agreements” which includes vehicle finance for which disbursements decreased from R28.14 billion to R25.78 billion for the quarters March 2008 to June 2008.
As at June 2008, the total outstanding balances on Consumer Credit was R1.1 trillion. Of this, Mortgages account for 63.2% or R706.46 billion and “Other Credit Agreements” (including vehicle finance) stood at R231.15 billion as at June 2008.
For the quarter ended June 2008 the banks share of the Consumer Credit Industry is 87.4% or R975.83 billion. The banks grew their loan books by 3.2% for the quarter ended June 2008. The balance of the Consumer Credit Industry is held by furniture and clothing retailers, Specialist motor vehicle financiers, homeloans financiers and microlenders.
Out of the R76.98 billion credit granted, Gauteng Province received 51.47% or R39.55 billion followed by Western Cape with 15.2% or R11.71 billion.
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