Credit grows and grows
IJG Securities states in its latest Economic Flash published last week Friday that credit extended to the private sector increased N$555 million or 1.1% in January to N$52.6 billion. “On an annual basis Private Sector Credit Extension rebounded after the previous month’s slowdown, increasing 17.3%, with total credit outstanding N$7.8 billion more than a year ago.”
IJG said the increase was “broad based with both businesses and individuals showing an increase in demand for credit. The split between business and credit in total debt outstanding is 39% to 61%. Overdrafts showed the strongest month on month increase, up N$213 million (38% of monthly gain) followed by mortgage loans which increased N$142 million (26% of monthly gain).”
“Credit extended to businesses increased N$349 million or 1.7% during the month, lead by overdrafts. On an annual basis business credit increased N$3.7 billion or 22.1%.”
On the annual change in private sector credit, IJG said “it is evident that businesses are most active in the other loans and advances and overdrafts space, with these two categories up 32.6% and 24.2%, respectively.”
On credit extension to households IJG said it increased by N$393 million or 0.6% during the month, also lead by overdrafts which increased N$100 million or 5.7% compared to December 2012, and up 26.8% when compared to January 2012.
“Mortgage loans to individuals increased N$55.4 million during the month, however growth remained flat on an annual basis.”