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

Trends and composition of household sector liabilities

Household sector net worth

Way forward
2
Background

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
3
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)
4
Household non-financial assets

Dwellings

Other buildings and structures

Machinery and equipment

Cultivated assets

Inventories

Land
Memorandum item: Consumer durables
5
Household financial assets

Currency and deposits

Securities other than shares

Shares and other equity

Insurance and technical reserves

Other accounts
6
Household liabilities
Consumer credit

•
Personal loans
•
Instalment sale and leasing finance
•
Open accounts
•
Debt with local authorities

Mortgage advances

Securitisation

Non-incorporated credit
7
Balance sheet of household sector
R billions - end 2010*
Total assets
7 238
Total liabilities and net worth
7 238
Tangible assets
1 969
Total liabilities
1 258
Residential buildings
1 648
Other tangible assets
321
Financial assets
Assets with monetary institutions
5 269
Mortgage advances
782
Other debt
476
Net worth
5 980
577
Interest in pension funds and
long-term insurers
2 402
Other financial assets
2 290
* Preliminary
8
Source data - household balance sheet

South African Reserve Bank Surveys

Statistics South Africa Surveys

National Department of Agriculture

National Credit Regulator

National Treasury

Other
9
Trends and
composition of
household sector
assets
10
Household assets
R trillions
7.5
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
2005
2006
2007
2008
2009
2010
2011
11
Breakdown of household assets – year end
2005
Other assets,
30.7%
2010
Residential
buildings, 23.5%
Other
assets, 31.6%
Residential
buildings,
22.8%
Other tangible
assets, 5.2%
Interest in
pension fund
and long-term
insurers,
32.6%
Monetary
assets, 8.0%
Interest in
pension fund
and long-term
insurers,
33.2%
Other
tangible
assets, 4.4%
Monetary
assets, 8.0%
12
Selected assets of the household sector
Percentage change over four quarters
60
50
40
30
20
10
0
-10
-20
-30
-40
2005
2006
2007
2008
2009
2010
2011
Interest in pension funds and long-term insurers
Residential buildings and land
Monetary assets
Corporate bonds and equities
13
Trends and
composition of
household sector
liabilities
14
Household debt
R trillions
1.3
1.2
1.1
1.0
0.9
0.8
0.7
0.6
0.5
2005
2006
2007
2008
2009
2010
2011
15
Household debt
Percentage change over four quarters
29
26
23
20
17
14
11
8
5
2
2005
2006
2007
2008
2009
2010
2011
16
Breakdown of household liabilities - year end
2005
Debt with local
authorities,
2.2%
Nonincorporated
credit, 4.4%
Personal
loans, 14.4%
2010
Debt with local
authorities,
2.3%
Nonincorporated
credit, 1.6%
Securitisation,
1.7%
Personal
loans, 16.0%
Open
accounts,
3.3%
Instalment
sale and
leasing, 14.6%
Instalment
sale and
leasing, 17.3%
Mortgage
advances,
56.7%
0.0%
Securitisation,
0.4%
Open
accounts,
3.0%
Mortgage
advances,
62.1%
17
Household debt ratio
Percentage of annualised household disposable income
82
80
78
76
74
72
70
68
66
64
62
60
2005
2006
2007
2008
2009
2010
2011
Seasonally adjusted
18
Household debt service ratio
Financing cost of debt as percentage of annualised disposable income
13
12
11
10
9
8
7
2005
2006
2007
2008
2009
2010
2011
Seasonally adjusted
19
Household sector
net worth
20
Household net worth
R trillions
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2005
2006
2007
2008
2009
2010
2011
21
Household net worth
Percentage change over four quarters
30
25
20
15
10
5
0
-5
-10
-15
2005
2006
2007
2008
2009
2010
2011
22
Ratio of household net worth to disposable
income
Per cent
420
410
400
390
380
370
360
350
340
330
320
310
2005
2006
2007
2008
2009
2010
2011
Seasonally adjusted
23
Way forward

Publication of household balance sheet aggregates

National household financial well-being survey

Balance sheets for all institutional sectors

2008 SNA
24
Thank You
Economist
Research Department
South African Reserve Bank
Karen.Kuhn2@resbank.co.za
+27 12 313 4318
www.reservebank.co.za