Financial Health and Performance Overview slide image

Financial Health and Performance Overview

Canada: Growth in Household Credit HIGHLIGHTS Household credit growth picked up rapidly throughout 2021 and into 2022, peaking at 9.1% y/y in spring 2022 (but lower than its previous 2007 peak of 13.4%). It has since slowed with recent figures at 6.2% y/y for the rolling quarter ending in Feb. 2023. Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.) grew by 4.6% y/y for the rolling quarter ending Feb. 2023. While consumer loan growth has not slowed in line with household credit and residential mortgage growth, signs of potential slowing are emerging as of late. Mortgage credit grew at 6.5% y/y in the rolling quarter ending Feb. 2023 (vs the 2007 peak of 14.0% y/y). Mortgage growth is slowing amidst higher rates. HOUSEHOLD CREDIT GROWTH1 CONSUMER LOAN GROWTH1 MORTGAGE GROWTH 1 16 %, 3-month moving average 14 12 10 y/y % change 8 6 4 m/m% change, 2 SA 30 %, 3-month moving average 20 10 10 о -10 -20 16 %, 3-month moving average 14 y/y % 12 change 10 y/y % change m/m% change, SA 8 6 4 2 0 T -30 01 03 05 07 09 11 13 15 17 19 21 23 0 01 03 05 07 09 11 13 15 17 19 21 23 1 Sources: Scotiabank Economics, Statistics Canada T m/m% change, SA 01 03 05 07 09 11 13 15 17 19 21 23 72
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