Consumer Credit Market Report
First Quarter | March 2016
The total value of new credit granted decreased from R124.15 billion to R108.33 billion for the quarter ended March 2016, a decrease of 12.74% when compared to the previous quarter and an increase of 0.74% a year ago. The number of applications for credit decreased by 1,326,000 from 11.32 million in December 2015 to 9.99 million in March 2016, representing a decrease of 11.72% for the quarter. The rejection rate for applications was 53.76%.
The Banks’ share of total granted was R81.46 billion (75.20%), Retailers R2.94 billion (2.71%), Non Bank financiers R8.92 billion (8.24%) and “Other credit providers” R15.00 billion (13.85%). Other credit providers consists primarily of pension backed lenders, developmental lenders, micro loan lenders, agricultural lenders, insurers, non bank mortgage lenders and securitised debt.
The total outstanding gross debtors book of consumer credit for the quarter ended March 2016 was R1.66 trillion, representing a quarter-on-quarter growth of 0.91%. The number of accounts decreased by 1.58% for the quarter ended March 2016. Mortgages accounted for R863.37 billion (52.07%);
“Secured credit agreements” for R370.51 billion (22.34%); Credit facilities for R219.20 billion (13.22%);
Unsecured credit for R165.16 billion (9.96%); Developmental credit for R36.89 billion (2.22%) and Short-term credit for R3.09 billion (0.19%) of the total gross debtors book.
The following were some of the most signifi cant trends observed for the quarter ended March 2016
• The value of mortgages granted decreased by 16.45% quarter-on-quarter from R39.64 billion to R33.12 billion;
• Secured credit granted decreased from R41.77 billion for December 2015 to R34.16 billion for
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Introduction
The Consumer Credit Market Report is issued by the National Credit Regulator. It is based upon returns which credit providers are required to submit in terms of the National Credit Act (NCA). The statistics presented in this report cover the quarters up to 31 March 2016 (2016-Q1).
The reporting requirements of the NCA differentiate between small credit providers, defined as credit providers for whom annual disbursements are less than R15 million, and larger credit providers.
Credit providers with annual disbursements of more than R15 million are required to submit quarterly returns.
Credit providers with annual disbursements of less than R15 million are only required to submit annual returns.
The statistics included in the report follow the scope and definitions in the NCA. The report thus reflects all consumer credit, as well as agreements with juristic persons with a turnover or net assets of less than R1 million. It excludes all other juristic persons.
The reporting quarters (Q) in the CCMR are as explained in the table below:
Quarters Reporting period
Quarter 1 (Q1) 1 January – 31 March
Quarter 2 (Q2) 1 April – 30 June
Quarter 3 (Q3) 1 July – 30 September
Quarter 4 (Q4) 1 October – 31 December
“Secured credit” in this report refers to transactions which were classified as “Other credit agreements” in the previous Consumer Credit Market Reports. This credit type includes transactions that do not fall within any of the other categories in the NCA. It includes a range of secured credit agreements, such as pension-backed loans, Insurance-backed loans, retail furniture accounts and motor vehicle accounts and consists of all credit that is secured, other than mortgages and credit facilities. Detailed tables on the data shown in this report can be found in the Appendix.
Abbreviations - “year-on-year (y-o-y)” as used in this report refers to a comparison of the quarter ended March 2015 to the quarter ended March 2016 and “quarter-on-quarter (q-o-q)” refers to a comparison of the quarter ended December 2015 to the quarter ended March 2016. The totals reported in the “Credit granted” sections do not add up to the totals reported in the “Level of income” sections due to loans granted to juristic persons where the level of income is not reported by credit providers. This applies to all the credit types reflected in this report.
March 2016 (a quarter-on-quarter decrease of 18.22%);
• Unsecured credit agreements decreased from R22.47 billion for December 2015 to R18.88 billion for March 2016 (a quarter-on-quarter decrease of 15.97%);
• Credit facilities which consist mainly of credit cards, store cards and bank overdrafts decreased by 4.72% quarter-on-quarter from R13.97 billion to R13.31 billion;
• Short-term credit showed a quarter-on-quarter decrease of 28.46% from R4.49 billion to R3.21 billion;
• Developmental credit showed a quarter-on-quarter increase of 212.25% from R1.81 billion to R5.65 billion.
