The latest Credit Bureau Monitor and Consumer Credit Market Reports have been released by the office of the National Credit Regulator for the Quarter ending 30 June 2018.

The Credit Bureau Monitor is compiled from information provided by the Credit Bureaus to the National Credit Regulator’s office that compiles and distributes the quarterly report.

We have seen a reduction in the total credit active consumers on the Credit Bureaus of 876 000 quarter-on-quarter and 197 000 year-on-year.

We have furthermore seen a decrease in consumers in good standing (these are consumers that have accounts that are more than 3 months in areas) by 751 000 quarter-on-quarter.

The total enquiries that have been made on Credit Bureaus has seen a steep increase of 21.8% year-on-year with the rejection rate of credit applications now standing on 50.06% for the quarter ending June 2018.

The Consumer Credit Market Report is issued by the National Credit Regulator and is based on the returns which Credit Providers are required to submit.

The credit that was extended increased by R131.65 billion for the quarter ending June 2018, an increase of 8.25% when compared to the previous quarter and an increase of 9.63% year-on-year.

We believe that the recent increase in fuel price and other related costs will further impact these alarming trends and we expect to see the consumers facing more challenges with managing their credit profiles as a result of these increases in the next half of the year.

Quarterly comparison Quarter ending
Q4 2017 Q1 2017 Q2 2018 % Change Q1 – Q2
000 000 000 %
Credit Active Consumers 25.31 25.46 24.59 -4%
Consumers in good standing 15.62 15.77 15.20 -4%
Applications for credit 10.48 10.49 11.10 5%
% % % %
Rejections on credit applications 49.74 48.53 50.06 3%
 R 000 000  R 000 000  R 000 000 %
New credit granted             135 711             121 620             131 647 8%
Mortgages granted               41 331               35 395               40 175 12%
Secured credit granted               46 367               41 480               41 541 0%
Unsecured credit granted               25 065               23 226               26 001 11%
Credit facilities granted               17 509               16 721               18 618 10%
Short-term credit granted                 3 726                 3 219                 3 579 10%
Developmental credit granted                 1 713                 1 579                 1 733 9%
Total consumer balances outstanding         1 755 500         1 777 553         1 797 765 1%

 

 

Annual comparison year ending
Q2 2016 Q2 2017 Q2 2018 % Change YOY – Q2
000 000 000 %
Credit Active Consumers 24.08 24.78 24.59 -1%
Consumers in good standing 14.41 15.10 15.20 1%
Applications for credit 43.11 39.53 41.94 6%
% % % %
Rejections on credit applications 53.3% 51.5% 49.9% -3%
 R 000 000  R 000 000  R 000 000 %
New credit granted 464 733 477 457 512 618 7%
Mortgages granted 148 612 145 019 154 439 6%
Secured credit granted 151 125 157 734 171 638 8%
Unsecured credit granted 82 604 85 832 96 585 11%
Credit facilities granted 56 880 59 147 68 980 14%
Short-term credit granted 14 696 12 629 13 593 7%
Developmental credit granted 11 414 17 095 7 383 -132%
Total consumer balances outstanding 1 663 291 1 716 124 1 797 765 5%

 

Full copies of the Credit Bureau Monitor and the Consumer Credit Market Report can be downloaded from our website by clicking on the link below:

Credit Bureau Monitor – June 2018

Consumer Credit Market Report – June 2018

Marina Short
Chief Executive Officer – Consumer Profile Bureau
3 October 2018