Household Balance Sheet South Africa

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Household Household Balance Sheet Balance Sheet South Africa South Africa 25 October 2011

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Household Balance Sheet South Africa. 25 October 2011. Outline of presentation. Background Definition of household sector Household assets and liabilities Balance sheet of household sector Source data Trends and composition of household sector assets - PowerPoint PPT Presentation

Transcript of Household Balance Sheet South Africa

Page 1: Household Balance Sheet  South Africa

Household Household Balance Sheet Balance Sheet

South AfricaSouth Africa

25 October 2011

Page 2: Household Balance Sheet  South Africa

Outline of presentationOutline of presentation

Background

Definition of household sector

Household assets and liabilities

Balance sheet of household sector

Source data

Trends and composition of household sector assets

Trends and composition of household sector liabilities

Household sector net worth

Way forward

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BackgroundBackground

Balance sheets aggregates estimated quarterly

Research to improve household balance sheet

ongoing

Limited information published to date

i.e. debt-to-disposable-income ratio

and wealth-to-disposable-income ratio

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Household sector Household sector

The household sector consists of all resident households, unincorporated

enterprises owned by households and non-profit institutions serving

households (S.14 and S.15)

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Household non-financial assets

Dwellings

Other buildings and structures

Machinery and equipment

Cultivated assets

Inventories

Land

Memorandum item: Consumer durables

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Household financial assetsHousehold financial assets

Currency and deposits

Securities other than shares

Shares and other equity

Insurance and technical reserves

Other accounts

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Household liabilities

Consumer credit

• Personal loans

• Instalment sale and leasing finance

• Open accounts

• Debt with local authorities

Mortgage advances

Securitisation

Non-incorporated credit

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Balance sheet of household sectorBalance sheet of household sector R billions - end 2010* R billions - end 2010*

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* Preliminary

Total assets 7 238 Total liabilities and net worth 7 238

Tangible assets 1 969 Total liabilities 1 258

Residential buildings 1 648 Mortgage advances 782

Other tangible assets 321 Other debt 476

Financial assets 5 269 Net worth 5 980

Assets with monetary institutions 577

Interest in pension funds and

long-term insurers 2 402

Other financial assets 2 290

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Source data - household balance sheetSource data - household balance sheet

South African Reserve Bank Surveys

Statistics South Africa Surveys

National Department of Agriculture

National Credit Regulator

National Treasury

Other

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Trends and Trends and composition of composition of

household sector household sector assetsassets

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Household assetsHousehold assets

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R trillions

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

2005 2006 2007 2008 2009 2010 2011

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Breakdown of household assets – year endBreakdown of household assets – year end

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Residential buildings, 23.5%

Other tangible assets, 5.2%

Monetary assets, 8.0%

Interest in pension fund and long-term

insurers, 32.6%

Other assets, 30.7%

2005

Residential buildings,

22.8%Other

tangible assets, 4.4%

Monetary assets, 8.0%

Interest in pension fund and long-term

insurers, 33.2%

Other assets, 31.6%

2010

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Selected assets of the household sectorSelected assets of the household sector

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Interest in pension funds and long-term insurersResidential buildings and land Monetary assetsCorporate bonds and equities

0

10

20

30

40

50

60

-10

-20

-30

-402005 2006 2007 2008 2009 2010 2011

Percentage change over four quarters

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Trends and Trends and composition of composition of

household sector household sector liabilitiesliabilities

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Household debtHousehold debt

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0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

2005 2006 2007 2008 2009 2010 2011

R trillions

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Household debtHousehold debt

16

2

5

8

11

14

17

20

23

26

29

2005 2006 2007 2008 2009 2010 2011

Percentage change over four quarters

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Breakdown of household liabilities - year endBreakdown of household liabilities - year end

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0.0%

Personal loans, 16.0%

Securitisation, 0.4%

Open accounts,

3.0%

Instalment sale and

leasing, 14.6%

Mortgage advances,

62.1%

Non-incorporated credit, 1.6%

Debt with local authorities,

2.3%

2010

Personal loans, 14.4%

Securitisation, 1.7%

Open accounts,

3.3%Instalment

sale and leasing, 17.3%

Mortgage advances,

56.7%

Non-incorporated credit, 4.4%

Debt with local authorities,

2.2%

2005

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Household debt ratioHousehold debt ratio

18

60

62

64

66

68

70

72

74

76

78

80

82

2005 2006 2007 2008 2009 2010 2011

Percentage of annualised household disposable income

Seasonally adjusted

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Household debt service ratioHousehold debt service ratio

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7

8

9

10

11

12

13

2005 2006 2007 2008 2009 2010 2011

Financing cost of debt as percentage of annualised disposable income

Seasonally adjusted

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Household sector Household sector net worthnet worth

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Household net worthHousehold net worth

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3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

2005 2006 2007 2008 2009 2010 2011

R trillions

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Household net worthHousehold net worth

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0

5

10

15

20

25

30

-5

-10

-152005 2006 2007 2008 2009 2010 2011

Percentage change over four quarters

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Ratio of household net worth to disposable Ratio of household net worth to disposable incomeincome

23

310

320

330

340

350

360

370

380

390

400

410

420

2005 2006 2007 2008 2009 2010 2011

Seasonally adjusted

Per cent

Page 24: Household Balance Sheet  South Africa

Way forwardWay forward

Publication of household balance sheet aggregates

National household financial well-being survey

Balance sheets for all institutional sectors

2008 SNA

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Page 25: Household Balance Sheet  South Africa

Thank YouThank You

Economist Research Department

South African Reserve Bank

[email protected]+27 12 313 4318

www.reservebank.co.za