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5232.0 - Australian National Accounts: Financial Accounts, Sep 2009  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 24/12/2009   
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SECTORAL ANALYSIS


NON-FINANCIAL CORPORATIONS

Summary

Other private non-financial corporations repaid a net $0.4b (excluding derivatives and accounts payable) during the September quarter 2009. They repaid $24.1b in loans and issued $20.8b in shares and other equities. Net issuance of debt securities during the quarter was $2.9b. These transactions resulted in total borrowings outstanding of $811.2b and total equity on issue of $1,003.0b

Other private non-financial corporations
Graph: Other private non-financial corporations


During the September quarter 2009, private non-financial investment funds raised $3.6b in equity and redeemed $0.9b in bonds. Total liabilities of national public non-financial corporations increased by $0.6b. Liabilities of state and local public non-financial corporations increased by $3.2b to $137.9b.


Private non-financial debt to equity ratio

From the end of September 2007 to the end of September 2009, the value of equity on issue decreased by $224.3b whereas the value of debt outstanding rose by $83.5b. During the September quarter 2009, private non-financial debt decreased by $14.2b and equities on issue increased by $134.9b. The original debt to equity ratio decreased from 1.01 to 0.87 and the adjusted ratio decreased from 1.22 to 1.17. The adjusted ratio reflects the removal of price change from the original series.

Private non-financial debt to Equity ratio: June 1995 Base
Graph: Private non–financial debt to Equity ratio: June 1995 Base



FINANCIAL CORPORATIONS

Assets and liabilities of Financial corporations

Outstanding at end
Transactions during
Other changes during
Outstanding at end
Jun Qtr 2009
Sep Qtr 2009
Sep Qtr 2009
Sep Qtr 2009
$b
$b
$b
$b

Assets of Financial corporations
Central bank
98.2
-13.0
-1.4
83.8
Banks
2 127.5
-1.8
31.6
2 157.3
Other depository corporations
326.1
-13.0
9.5
322.6
Pension funds
909.4
21.7
79.2
1 010.2
Life insurance corporations
234.3
1.7
12.9
248.9
Non-life insurance corporations
118.2
-
3.7
121.9
Money market financial investment funds
39.6
-1.0
-
38.7
Non-money market financial investment funds
220.8
10.3
22.1
253.2
Central borrowing authorities
188.7
-1.1
3.5
191.1
Securitisers
313.3
-1.4
-
311.8
Other financial corporations
92.3
-0.2
9.9
102.0
Liabilities of Financial corporations
Central bank
100.5
-13.3
-1.9
85.4
Banks
2 235.4
6.1
91.7
2 333.2
Other depository corporations
341.9
-16.6
10.9
336.2
Pension funds
972.8
24.8
77.9
1 075.5
Life insurance corporations
252.3
0.5
17.8
270.6
Non-life insurance corporations
151.4
1.4
6.0
158.8
Money market financial investment funds
44.9
-1.4
-
43.4
Non-money market financial investment funds
219.8
1.7
14.1
235.7
Central borrowing authorities
180.1
-2.3
1.8
179.6
Securitisers
313.7
-2.7
-2.1
308.9
Other financial corporations
78.6
-0.2
0.8
79.2

- nil or rounded to zero (including null cells)



Summary

During the September quarter 2009, financial corporations had $25.9b of liability transactions on a consolidated basis. The liability transactions were: Central bank, -$13.3b; banks, $6.1b; other depository corporations, -$16.6b; pension funds, $24.8b; life insurance corporations, $0.5b; non-life insurance corporations, $1.4b; money market investment funds, -$1.4b; non-money market investment funds, $1.7b; central borrowing authorities, -$2.3b; securitisers, -$2.7b and other financial corporations -$0.2b.


Banks

Transactions of financial assets of banks were net -$1.8b during the quarter. Major transactions in bank assets holdings were: loans, net $16.8b, of which $25.1b were lent to households and $13.1b were repaid by other non-financial corporations; bonds, net $2.7b of which $10.8b were issued by securitisers; deposits, net -$9.1b of which $7.8b were withdrawn by other depository corporations; derivatives, net -$15.9b, of which $10.5b were settled by the rest of the world.

During the quarter, liability transactions of banks were deposits of $25.3b, bonds issuance of $12.1b and equities issuance of $8.3b. These were offset by net settlements of derivatives of $22.2b and redemptions of one name paper of $8.4b, bills of $5.4b and repayment of loans of $2.6b.


Other depository corporations

Transactions of other depository corporations liabilities were net -$16.6b during the September quarter 2009. Main contributors were derivatives of -$8.7b, deposits of -$7.6b, bonds of -$1.5b, loans of -$1.3b and one name paper of $1.0b.

Transactions of assets during the quarter were net -$13.0b. The main contributors were the settlement of derivative contracts, net $8.1b, repayment of loans, net $10.7b and sales of bonds, net $4.1b . These were offset by deposits of $4.8b and purchases of one name paper of $2.0b and accumulation of other accounts receivable of $2.7b.


Pension funds

Net equity in reserves of pension funds was $1065.5b at the end of the September quarter 2009, an increase of $102.2b. This follows net transactions of $24.5b and valuation increases of $77.7b during the quarter. Asset holdings increased by $100.8b to $1010.2b following net transactions of $21.7b and valuation increases of $79.1b.


Life insurance corporations

At the end of September quarter 2009, the financial assets of life insurance corporations were $248.9b, an increase of $14.6b from the previous quarter. Net transactions were $1.7b and valuation increases were $12.9b. During the quarter, there were purchases of equity of $3.2b and bonds of $0.9b. This was offset by sales of one name paper in the amounts of $0.4b. Pension fund claims against the reserves of life offices increased by $13.3b following net transactions of $4.0b and valuation increases of $9.3b.

Households' claims against the reserves of life offices increased by $0.6b following net transactions of -$3.8b and valuation increases of $4.4b.


Non-life insurance corporations

Net transactions of financial assets of non-life insurance corporations were net $0b during the September quarter 2009. The main contributors was deposits of $1.5b and equities of $2.6b. This was offset by sales of bonds of $1.6b and one name paper of $2.7b. During the September quarter, net liability transactions of non-life insurance corporations were $1.4b, driven mainly by other accounts payable of $0.4b and prepayments of premiums and reserves of $0.8b.


Money market investment funds

Total assets of money market investment funds was $38.7b at the end of the September quarter 2009, of which $26.8b was invested in one name paper and $4.7b in bills of exchange. During the quarter, total unlisted equities issued by money market investment funds decreased by -$1.4b to $43.4b.


Non money market investment funds

Total assets transactions of non money market investment funds during September quarter 2009 was $10.3b of which the main contributor was purchases of equities of $9.3b. At the end of quarter, total liabilities of non money market investment funds were $235.7b following an increase of $15.9b.


Central borrowing authorities

Total liabilities of central borrowing authorities was $179.6b at the end of the September quarter 2009. During the quarter, the authorities issued bonds of $1.7b, redeemed one name paper of $1.8b, and repaid $1.1b of loans. Net asset transactions during the quarter were -$1.1b, the main contributors being issuance of loans, $10.4b and purchases of bills of exchange, $1.8b. These were offset by sales of one name paper $7b, withdrawals of deposits, $2.3b, and net settlement of derivatives, $2.6b.


Securitisers

At the end of the September quarter 2009, net liabilities of securitisers were $308.9b, with bonds on issue of $272.8b, and one name paper of $25.7b. Net assets of securitisers were $311.8b with the major assets in loans and placement, $303b and deposits, $4.7b. During the quarter, $12.4b of loans has been internally securitised.


Net flow of deposits to banks

Transactions in transferable deposit liabilities of banks during the September quarter 2009 were net -$0.1b. There were transactions in transferable deposit assets of national general government, $4.1b, pension funds, $ 1.4b and households, $4.8b. These were offset by withdrawals by other private non-financial corporations, $6.9b. Transactions in other deposits liabilities of banks during the quarter were $24.7b of which $9.4b was deposited by other non-financial corporations, $10.3b by households, $3.0b by rest of world and $2.2b by other depository corporations.

Currency and deposits liabilities, Banks
Graph: Currency and deposits liabilities, Banks



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

At the end of the September quarter 2009, pension funds held $523.4b in shares and other equity (51.8% of their financial assets), of which $373.5b was in resident companies and $149.9b was in non-resident companies. They held $159.9b of the net equity in life office reserves (15.8% of their financial assets); and $104.9b in bonds (10.4% of their financial assets), of which $60.2b were bonds issued by domestic institutions and $44.7b were bonds issued by non-residents.

At the end of the September quarter 2009, life insurance corporations held $186.4b in shares and other equity (74.9% of their financial assets), of which $161.6b was in resident companies and $24.8b was in non-resident companies; $30.6b in bonds (12.3% of their financial assets), of which $23.0b was in bonds issued by domestic institutions and $7.6b in bonds issued by non-residents; and $10.9b in short term securities (4.4% of their financial assets).

Assets of pension funds and life insurance corps.
Graph: Assets of pension funds and life insurance corps.



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

At the end of the September quarter 2009, households had claims against the reserves of pension funds of $1,064.5b and life insurance corporations of $76.0b. Pension funds had claims against the reserves of life insurance corporations of $159.9b. Life insurance corporations invested $132.3b through fund managers, and pension funds invested $466.9b through investment managers.

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


Financial asset portfolio of non-life insurance corporations at end of quarter

The graph below shows that at the end of the September quarter 2009, non-life insurance corporations held $42.0b in shares and other equity (34.5% of their financial assets), of which $28.9b was in resident corporations; $38.1b in bonds (31.3% of their financial assets), of which $33.9b was issued by resident corporations; and $7.5b of short-term securities (6.2% of total financial assets).

Assets of non-life insurance corps.
Graph: Assets of non-life insurance corps.



Central borrowing authorities net issue of debt securities

During the September quarter 2009, central borrowing authorities issued bonds of $1.7b and redeemed one name paper of $1.8b.

Net issue of debt securities, Central borrowing authorities
Graph: Net issue of debt securities, Central borrowing authorities



Securitisers' net issue of debt securities

During the September quarter 2009, securitisers had a net redemption of bonds of $1.1b and a net redemption of one name paper of $3.2b.

Net issue of debt securities, Securitisers
Graph: Net issue of debt securities, Securitisers



GENERAL GOVERNMENT

Summary

During the September quarter 2009, consolidated general government transactions resulted in a net change in financial position of -$12.9b.

The net change in financial position for national general government was $2.6b. The liability transactions of national general government during the quarter were -$0.5b, with the main contributors being bonds issued in Australia of $8.4b and monetary gold and SDRs of $5.1b. These were offset by other accounts payable of $7.7b, maturing of one name paper of $4.8b and settlements of derivatives of $1.3b. During the quarter asset transactions for national general government were $2.2b, with the main contributors being other accounts receivable of $11.1b and bonds of $6.6b. These were offset by redemptions of bills of exchange of $5.2b, withdrawal of deposits of $4.4b and settlement of derivatives of $3.3b. At the end of the quarter, national general government had total liabilities of $294.5b and total financial assets of $249.7b.


Change in financial position

Transactions in state and local general government financial assets were -$3.9b in the September quarter 2009, while transactions in total liabilities were $11.6b, resulting in a change in financial position of -$15.5b. At the end of the quarter, state and local general government had total liabilities of $149.3b and total financial assets of $83.8b.

Change in financial position, General government
Graph: Change in financial position, General government



National government net issue of long term debt securities

The graph below illustrates the national general government’s net issuance of long term debt securities. The net issuance of treasury bonds was $8.3b during the quarter.

Net Issue of long term debt securities, National general government
Graph: Net Issue of long term debt securities, National general government



HOUSEHOLDS

Summary

Households change in financial position was $2.6b during the September quarter 2009. During the quarter, households borrowed a total of $24.4b in the form of loans. On the asset side, net contributions to life insurance and pension fund reserves were $20.6b. Householders' transactions in deposits were $16.4b and they purchased net $1.3b in equities during the quarter.

At the close of the quarter, households' stock of financial assets was $2,402.2b. This was an increase of $180.5b from the previous quarter, following net transactions of $35.9b and valuation increases of $144.6b. Major asset holdings were net equity in reserves $1,149.6b, deposits of $569.4b, equities of $326.5b and unfunded superannuation claims of $200.4b.

Of the net $24.4b loans borrowed by households during the September quarter 2009, bank loans accounted for $25.1b and securitisers, $4.8b. Last quarter borrowing from banks was $38.7b, this was being offset by securitisers of $10.3b. September 2009 quarter saw an increase of internal securitisation. For detail on the ABS treatment of internal securitisation, refer to page 6 of the December quarter 2008 publication.


Household net borrowing and debt to liquid asset ratio

The graph below illustrates that the debt to liquid assets ratio at the end of September 2009 was at 150.2%, a decrease of 8.0 percentage points on revised June 2009 data. The ratio was influenced by an increase of 2.5% in total outstanding household borrowings and an increase in total liquid assets of 7.9%. The major contributor to the increase in liquid assets was equities, up 19.1%. This was offset by a decrease in one name paper of 23.3%.

Household Debt to liquid assets ratio
Graph: Household Debt to liquid assets ratio



Insurance and pension claims

During the September quarter 2009, households' net equity in reserves of pension funds increased by $102.1b, made up of $24.5b in transactions and $77.6b in valuation increases, bringing household net equity in pension funds to $1,064.5b. Net equity in reserves of life insurance corporations increased by $0.6b, made up of -$3.8b transactions and $4.4b valuation increases, bringing the household net equity in life insurance to $76.0b. Net equity in reserves of rest of world decreased by $0.7b, made up of $1.0b transactions and $1.7b of valuation decreases. Net transactions in households' unfunded superannuation claims were $1.1b and prepayments of premiums and claims against reserves in non-life insurance corporations were $0.5b during the quarter.


REST OF THE WORLD

Summary

Non-residents had net transactions of $44.8b in Australian financial assets during the September quarter 2009, resulting in $1,882.4b of Australian financial assets being held by non-residents, up $86.1b from the June quarter 2009. Valuation increases were $41.3b. The main contributors were net purchases of equities, $26.9b, net purchases of bonds, $26.1b, of which $13.5b was issued by national general government and $11.5b issued by banks. Net purchases of one name paper was $5.0b. These were offset by settlement of derivatives of $14.0b and drawdowns of loans and placements of $8.5b.

Australian residents had net transactions of $27.1b in foreign financial assets during the September quarter 2009. The total value of foreign assets held by Australian residents increased to $1,130.2b at the end of the quarter. Of this, $21.8b were valuation increases. The main contributors were purchases of unlisted shares and other equity, $20.1b and of bonds, $16.3b. These were offset by settlement of derivatives, $12.6b and net withdrawal in deposits, $8.7b.


Net purchases of equities

During the September quarter 2009, non-residents acquired a net $26.9b in equities, an increase of $2.9b compared with the June quarter 2009 estimate.

Net purchases of equity
Graph: Net purchases of equity



Net purchases of bonds

Non-residents acquired $26.1b of Australian bonds during the September quarter 2009, a decrease of $3.9b compared with the June quarter 2009 estimate.

Net purchases of bonds
Graph: Net purchases of bonds



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