The German Bundesbank published sectoral results from Germany’s financial accounts for the fourth quarter of 2024, showing a further rise in households’ nominal financial assets alongside a shift from longer-maturity deposits into very liquid deposit forms, while external financing of non-financial corporations dropped sharply and was driven mainly by other liabilities such as trade credit. Households’ nominal financial assets rose by EUR 136 billion to EUR 9,050 billion, reflecting EUR 79 billion of net acquisition of financial assets and EUR 57 billion of valuation gains. Within deposits, households reduced savings deposits and savings certificates by EUR 16 billion and increased cash and overnight deposits by EUR 65 billion, including EUR 55 billion in overnight deposits. They sold debt securities worth EUR 7 billion and were net neutral on equities overall, while selling listed domestic shares worth EUR 3 billion. Net purchases of investment fund units reached EUR 40 billion, including EUR 21 billion in money market funds. Valuation gains were concentrated in foreign equities (EUR 15 billion) and investment fund units (EUR 25 billion). Household liabilities increased by EUR 5 billion to EUR 2,136 billion, while the debt ratio fell 0.2 percentage points to 49.6% as nominal GDP rose; net financial wealth increased by EUR 132 billion to EUR 6,913 billion, but real net financial wealth remained below its 2022 peak. Using Distributional Wealth Accounts, the Bundesbank also reported that inflation-adjusted returns rose with net wealth, with the lower half of the distribution concentrated in deposits and insurance claims and the highest-wealth households’ returns more influenced by capital-market instruments; the aggregate real total return in Q4 2024 was just under 2%. For non-financial corporations, external financing fell by EUR 36 billion to EUR 22 billion, with other liabilities contributing EUR 21 billion. Loan financing declined from EUR 30 billion in the previous quarter to EUR 1 billion net repayment, with domestic bank borrowing at EUR -6 billion and foreign borrowing at EUR -12 billion; net bond issuance was close to zero, while issuance of shares and other equity was EUR 7 billion. Corporates’ liabilities edged down by EUR 23 billion to EUR 11,593 billion, largely due to EUR 46 billion of valuation losses concentrated in issued equity, and the debt ratio fell from 67.9% to 67.3%. Financial assets decreased by EUR 30 billion to EUR 8,835 billion, leaving net financial wealth broadly unchanged at EUR -2,757 billion; the Bundesbank noted that revisions to the financial accounts and national accounts mean the figures are not comparable with earlier press releases.
German Bundesbank 2025-04-25
German Bundesbank reports Q4 2024 financial accounts showing households shift into liquid deposits and non-financial corporates’ external financing falls to EUR 22 billion
The German Bundesbank's Q4 2024 accounts show a EUR 136 billion rise in households' nominal financial assets, driven by net acquisitions and valuation gains, with a shift towards liquid deposits. Non-financial corporations experienced a sharp decline in external financing due to reduced loan financing and valuation losses in issued equity, slightly decreasing liabilities. The Bundesbank noted that revisions to financial and national accounts affect comparability with previous data.