Australian Bureau of Statistics

Rate the ABS website
ABS Home > Statistics > By Release Date
ABS @ Facebook ABS @ Twitter ABS RSS ABS Email notification service
5232.0 - Australian National Accounts: Financial Accounts, Jun 2008  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 26/09/2008   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

SECTORAL ANALYSIS


NON-FINANCIAL CORPORATIONS

Summary

Private non-financial corporations raised a net $17.3b (excluding derivatives and accounts payable) during the June quarter 2008. They repaid $4.5b in loans and issued $13.8b in shares. Net issuance of debt securities during the quarter was $8.0b. These transactions resulted in total borrowings outstanding of $797.4b and total equity on issue of $1,218.5b.

PRIVATE NON-FINANCIAL CORPORATIONS, NET ISSUE OF EQUITY AND BORROWINGS
Graph: Private non-financial corporations, net issue of equity and borrowings


During the June quarter 2008, total liabilities of national public non-financial corporations decreased by $0.7b. Liabilities of state and local public non-financial corporations increased by $0.5b to $138.4b


Private non-financial corporations debt to equity ratio

From the end of June 2006 to the end of June 2008, the value of equity on issue increased by $272.8b. The value of debt outstanding rose by $266.0b during the same period. During the current quarter, private non-financial corporation debt increased by $18.1b, and equities on issue increased by $24.1b. Over the June quarter 2008, the original debt to equity ratio remained constant at 0.81 and the adjusted ratio decreased from 1.57 to 1.56. The adjusted ratio reflects the removal of price change from the original series.

DEBT TO EQUITY RATIO - JUNE 1995 BASE
Graph: DEBT TO EQUITY RATIO – JUNE 1995 BASE



FINANCIAL CORPORATIONS

Summary

During the June quarter 2008, financial corporations had $64.7b liability transactions on a consolidated basis. The liability transactions were: banks, $63.8b; pension funds, $25.5b; central bank, $11.4b; central borrowing authorities, $7.0b; life insurance corporations, $0.6b; other insurance corporations, $0.4b; other depository corporations, -$1.0b; and financial intermediaries n.e.c., -$18.9b.


Banks

Transactions of financial assets of banks were $56.5b during the quarter. Banks loaned a net $46.2b, of which loans to households were $38.8b and private non-financial corporations were $6.7b. Other major transactions in bank assets holdings were: deposits, $5.3b, of which $4.4b were accepted by rest of world and bills of exchange, $3.9b, of which $3.1b were issued by private non-financial corporations.

During the quarter, liability transactions of banks were; currency and deposits liabilities of $25.7b; bonds issuance of $16.2b; one name paper issuance of $8.9b; loans of $8.0b; net issues of derivatives of $3.0b; equities issuance of $1.7b and net incurrence of other accounts payable of $1.9b. These were offset by bills accepted of $1.5b.


Other depository corporations

Transactions of other depository corporations liabilities were -$1.0b during the June quarter 2008, driven mainly by net redemptions of one name paper of $0.9b, bonds $0.3b and repayments of loans of $0.3b, this was offset by deposits of $1.6b. Transactions of assets during the quarter were $4.1b, the main contributors were purchases of bonds, $1.5b and derivatives, $1.2b.


Life insurance corporations

At the end of June quarter 2008, the financial assets of life insurance corporations stood at $237.3b, a decrease of $5.3b from the previous quarter. Net transactions were $0.8b and valuation decreases were $6.1b. During the quarter, there were decreases in holdings of equities, $6.2b, one name paper, $2.3b, currency and deposits, $0.4b. Pension fund claims against the reserves of life offices decreased by $3.0b following net transactions of $1.7b and valuation decreases of $4.7b. Households' claims against the reserves of life offices decreased by $2.0b following net transactions of -$0.4b and valuation decreases of $1.6b.


Pension funds

Net equity in reserves of pension funds was $1,079.0b at the end of the June quarter 2008, an increase of $3.3b. This follows net transactions of $24.3b and valuation decreases of $21.0b during the quarter. Asset holdings increased by $1.9b to $1,027.5b following net transactions of $23.4b and valuation decreases of $21.5b.


Other insurance corporations

Net transactions in financial assets of other insurance corporations were $2.0b during June quarter 2008. The main contributors were currency and deposits of $2.3b, bonds of $1.4b and loans of $0.2b. These were offset by the sale of one name paper of $2.0b and equities of $1.3b. During the June quarter, net liability transactions of other insurance corporations were $0.4b, driven mainly by prepayments of premiums and reserves of $0.5b.


Central borrowing authorities

Total liabilities of central borrowing authorities was $143.6b at the end of the June quarter 2008. During the quarter, the authorities issued bonds of $5.6b, borrowed $0.9b through loans and redeemed one name paper of $0.7b. The net asset transactions of central borrowing authorities during the quarter were $5.0b, the main contributor being issuance of loans of $5.6b. This was offset by the sale of one name paper of $0.7b and withdrawal of currency and deposits of $0.5b.


Financial intermediaries n.e.c.

At the end of the June quarter 2008, net liabilities of financial intermediaries n.e.c. were $444.1b, with shares of $174.1b on issue, bonds of $150.4 and borrowings in the form of loans and placements of $72.0b. Net liability transactions of financial intermediaries n.e.c. were -$18.9b during the quarter, driven by the buy back of shares of $14.7b, net maturity of one name paper of $1.1b, bonds of $2.9b and loans of $0.6b. During the quarter, transactions in financial assets were -$27.2b, major contributors were net sale of equities of $14.3b, repayment of loans of $10.6b, one name paper of $1.6b, and bonds of $0.3b. These were offset by deposits of $1.1b


Net flow of currency and deposits to banks

Transactions in currency and deposit liabilities of banks during the June quarter 2008 were $30.7b. There were transactions in currency and deposit assets of households, $10.0b; private non-financial corporations, $7.0b; pension funds, $5.1b; banks, $5.0b; other insurance corporations, $2.7b and financial intermediaries n.e.c., $0.4b. These were offset by withdrawal of bank deposits by the rest of world, $0.5b , life insurance corporations, $0.4b and other depository corporations, $0.1b.

CURRENCY AND DEPOSITS LIABILITIES, BANKS
Graph: Net flow of currency and deposits to banks



Financial asset portfolio of life insurance corporations and pension funds at end of quarter

At the end of the June quarter 2008, life insurance corporations held $157.1b in shares and other equity (66.2% of their financial assets), of which $132.8b was in resident companies and $24.3b was in non-resident companies; $42.8b in bonds (18.0% of their financial assets), of which $32.9b was in bonds issued by domestic institutions and $9.9b in bonds issued by non-residents; and $14.3b in short term securities (6.0% of their financial assets).

At the end of the June quarter 2008, pension funds held $550.1b in shares and other equity (53.5% of their financial assets), of which $372.1b was in resident companies and $178.0b was in non-resident companies. They held $167.4b of the net equity in life office reserves (16.3% of their financial assets); and $92.8b in bonds (9.0% of their financial assets), of which $49.5b were bonds issued by domestic institutions and $43.3b were bonds issued by non-residents.

Graph: Financial Accounts, Quarters (June 1988 to current) ; Consolidated Subsector/Instrument, Assets, Total, Original


Financial claims between households, life insurance companies, pension funds and investment managers at end of quarter

At the end of the June quarter 2008, households had claims against the reserves of life insurance corporations of $55.3b and pension funds of $1,079.0b. Pension funds had claims against the reserves of life insurance corporations of $167.4b. Life insurance corporations invested $138.2b of their financial assets through investment managers, and pension funds invested $473.8b through investment managers.

Diagram: Financial claims between households, life insurance companies, pension funds and investment managers at end of quarter


Financial asset portfolio of other insurance corporations at end of quarter

The graph below shows that at the end of the June quarter 2008, other insurance corporations held $41.6b in shares and other equity (32.3% of total financial assets), of which $32.1b was in resident corporations; $38.3b in bonds (29.7% of total financial assets), of which $34.5b was issued by resident corporations; and $10.1b of short-term securities (7.8% of total financial assets).

Graph: Other insurance corporations, assets


Central borrowing authorities net issue of debt securities

During the June quarter 2008, central borrowing authorities issued bonds of net $5.7b and redeemed one name paper of $0.7b.

Graph: Central borrowing authorities - net issue of debt securities


Financial intermediaries n.e.c. net issue of debt securities

During the June quarter 2008, financial intermediaries n.e.c. made a net redemption of bonds of $2.9b and one name paper of $-1.1b.

Graph: Financial intermediaries n.e.c. net issue of debt securities


GENERAL GOVERNMENT

Summary

During the June quarter 2008, consolidated general government transactions resulted in a net change in financial position of $6.8b.

The net change in financial position for national general government was $12.3b.The liability transactions of national general government during the quarter were $4.1b, with the main contributors being other accounts payable of $2.4b and bonds etc. issued in Australia of $1.8b. During the June quarter 2008, asset transactions for national general government were $16.5b, with the main contributor being increased deposits of $16.2b. At the end of the quarter, national general government had total liabilities of $202.3b and total financial assets of $190.6b.

Transactions in state and local general government financial assets were $-1.7b in the June quarter 2008, while transactions in total liabilities were $3.9b, resulting in a change in financial position of $-5.5b. At the end of the quarter, state and local general government had total liabilities of $123.5b and total financial assets of $130.8b.


Change in financial position
Graph: Change in financial position


National government issue of debt securities

The graph below illustrates the national general government’s bond issuance. The net issuance of treasury bonds was $1.8b during the quarter.

Graph: National government issue of debt securities


HOUSEHOLDS

Summary

Households change in financial position was $2.0b during the June quarter 2008. During the quarter, households borrowed a total of $30.1b in the form of loans. On the asset side, householders' transactions in currency and deposits were $11.0b, of which $10.0b were bank deposits and $0.5b were accepted by other depository corporations. Net contributions to life insurance and pension fund reserves were $23.9b while net claims on unfunded superannuation were $0.3b.

Households bought a net $2.1b in equities during the June quarter 2008, the major contributors being the purchase of private non-financial corporations shares, $5.6b. This was offset primarily by the sale of equity in financial intermediaries n.e.c., $2.7b and banks, $0.4b.

At the close of the quarter, households' stock of financial assets was $2,275.9b. This was an increase of $6.7b from the revised previous quarter number, following net transactions of $37.3b and valuation decreases of $30.6b. Major asset holdings were net equity in reserves of life insurance corporations and pension funds of $1,134.3b, currency and deposits of $520.0b, equities of $338.6b and unfunded superannuation claims of $181.8b.


Household net borrowing and debt to liquid asset ratio

Of the net $30.1b loans borrowed by households during the June quarter 2008, bank loans accounted for $38.8b. This was offset by repayments to financial intermediaries n.e.c., $10.0b. Of the bank loans, $23.2b was borrowed for owner occupied housing and $10.5b for investment housing.

The graph below illustrates that the debt to liquid assets ratio at the end of June 2008 was at 143.7%, an increase of 4.2 percentage points. The ratio was influenced by an increase of 3.6% in total outstanding household borrowings and an increase in total liquid assets of 0.5%. The major contributor to liquid assets was currency and deposits (up 4.6%). This was offset primarily by decreases in holdings of equities (down 2.5%).

Graph: Household net borrowing and debt to liquid asset ratio


Insurance and pension claims

During the June quarter 2008, households' net equity in reserves of pension funds increased by $3.3b, made up of $24.3b in transactions and $21.0b in valuation decreases, bringing household net equity in pension funds to $1,079.0b. Net equity in reserves of life insurance corporations decreased $2.0b, made up of -$0.4b transactions and -$1.6b valuation changes, bringing the household net equity in life insurance to $55.3b. Net transactions in households' unfunded superannuation claims were $0.3b and prepayments of premiums and claims against reserves in general insurance corporations was $0.3b during the quarter.


REST OF THE WORLD

Summary

Non-residents had net transactions of $40.9b in Australian financial assets during the June quarter 2008, resulting in $1,717.8b of Australian financial assets being held by non-residents, up $14.0b from the March quarter 2008. Valuation decreases were $26.9b. The main contributors were net purchases of equities, $15.0b (of which $16.7b was issued by private non-financial corporations), bonds, $14.7b (of which $9.9b was issued by banks) and short term securities, $5.7b.

Australian residents had net transactions of $30.5b in foreign financial assets during the June quarter 2008. The total value of foreign assets held by Australian residents increased to $1,025.6b at the end of the quarter. Of this, $21.5b were valuation decreases. The main contributors were net purchases of equity, $8.1b, other accounts receivable, $7.3b, currency and deposits, $6.1b and loans and placements, $3.9b. These were offset by net settlements in one name paper of $2.1b.


Net purchases of equities

During the June quarter 2008, non-residents acquired a net $15.0b in equities, an increase of $7.9b compared with the March quarter 2008 estimate.

Graph: Net purchases of equities by non-residents


Net purchases of bonds

Non-residents purchased $14.7b of Australian bonds during the June quarter 2008, a decrease of $9.3b compared with the March quarter 2008 estimate.

Graph: Net purchases of bonds

Image: Have your say HAVE YOUR SAY

5232.0 - Australian National Accounts: Financial Accounts will be reviewed next year as part of ABS implementation of new international statistical standards. We would value your input and assistance in helping to shape this publication to meet your needs. A short feedback form is linked below for your comments.
Feedback Form

By clicking on this link, you will open a new window, and will be directed to a secure website external to the Australian Bureau of Statistics.

Bookmark and Share. Opens in a new window

Commonwealth of Australia 2014

Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.