Household net wealth up 9% in first quarter

The Central Bank said: 'Investments in financial assets totalling €4.7bn were offset by an uptake in liabilities of €1.3bn.'

The net wealth of Irish households increased by over 9% during the first three months of the year to €484.9bn, new data from the Central Bank of Ireland shows.

According to the data, Irish households’ total financial assets stood at €643.8bn, an increase of €42.8bn compared to the end of December. The increase was mainly driven by insurance and pension entitlements, up €40bn while deposits increased by €2.2bn.

Total households’ liabilities stood at €158.9bn — up €1.6bn. Long-term loans accounted for 95% of overall household liabilities in Ireland. This resulted in a net wealth of Irish households of €484.9bn, an increase of €41.2bn.

“Revaluations and other volume changes contributed €37.7bn to this movement, while investments in financial assets totalling €4.7bn were offset by an uptake in liabilities of €1.3bn,” the Central Bank said.

The total stock of financial assets of the Irish economy reached €13.76tn during the quarter — up 3.7% compared to the end of December. This growth was largely due to equity, up €93.2bn, with notable investment in both debt securities, €45.3bn, and deposits, €43.9bn.

Financial corporations accounted for approximately 78% of total financial assets in Ireland, with investment funds alone accounting for 40%. Investment funds held total assets of €5,514bn.

Total liabilities stood at €14.1tn at the end of March, up 3.3%. Transactions in liabilities totalled €235.4bn, mainly driven by investment fund shares and units, and other accounts payable.

The difference between total financial assets and liabilities of the Irish economy resulted in a net financial wealth position of minus €337.1bn — increasing by €32.5bn since December.

Government financial assets stood at €159.9bn as of the end of March, while liabilities totalled €241.9bn. This resulted in a net financial wealth position of minus €82.0bn at the end of the quarter.

The Central Bank said this is “continuing the trend of improving the net financial position of the Government”.