The main contributor to the high level of savings was the large net deposits in bank accounts, amounting to SEK 73 billion. Households’ net deposits in bank accounts are normally large in the second quarter of the year, when most share dividends are distributed. This year, many enterprises opted to completely refrain from or delay distribution of dividends. Nonetheless, the high level of net deposits in the second quarter is probably due to dropping household consumption instead, as an effect of the coronavirus pandemic. Net deposits in bank accounts in the second quarter of 2020 were SEK 13 billion less than net deposits in the first quarter of the year. The first quarter of 2020 noted the highest net deposits in bank accounts noted throughout the time series.

Households purchased equity funds and listed shares

When the stock markets fell in the previous quarter, households net sold SEK 46 billion in funds. As the stock markets turned upwards in the second quarter, households made net purchases of shares and investment fund shares of SEK 22 billion and SEK 10 billion respectively. Households net purchased equity funds for SEK 17 billion, and net sold bond and money market funds and other funds for SEK 6 billion. At the same time, households net purchased listed and unlisted shares for SEK 16 billion and SEK 6 billion respectively.

Marginally higher cash savings

In the second quarter, households noted savings of SEK 3 billion in currency, SEK 0.5 billion more than in the corresponding quarter last year. In the past ten years, holdings in currency fell by one-third and amounted to SEK 50 billion at the end of the second quarter.

Households’ financial net wealth recovered

Households financial net wealth increased by just under SEK 900 billion in the second quarter 2020, in part due to the high level of financial savings, but mainly due to the sharp upturn in the stock market. Large parts of households’ financial assets are directly held in shares or share-related assets, such as equity funds or insurance savings, which are affected, to a large extent, by the stock market development. According to Affärsvärldens general index, the stock market rose by 16.5 percent in the second quarter, following a drop of 18.4 percent in the first quarter. This means that households’ net wealth, which noted a sharp drop in the first quarter, had recovered to a large extent by the end of the second quarter. Financial net wealth amounted to SEK 11 154 billion at the end of the second quarter.

Households’ tenant-owned apartments decreased somewhat in value

Households’ net purchases of new tenant-owned apartments amounted to SEK 13 billion, which is SEK 7 billion less than in the same quarter a year ago and the lowest level in a second quarter in the last four years. New tenant-owned apartments consist of apartments with changing rights of tenancy to tenant-owned apartments and newly produced tenant-owned apartments. Households’ assets in tenant-owned apartments amounted to SEK 2 907 billion at the end of the second quarter, which was a decrease in value of 1.4 percent during the quarter. Households’ ownership of tenant-owned apartments is a financial asset and is included in the Savings Barometer. One- or two-dwelling buildings with ownership rights are not included, since they constitute real assets. Information about households’ total assets in housing is available in the National Wealth. Read more about National Wealth under More information.

Households’ growth rate was unchanged

Households’ net borrowing, that is, new loans minus amortisations, amounted to SEK 65 billion in the second quarter of 2020, which is SEK 5 billion more than in the corresponding period a year ago. Net borrowing has not been at the same level since the third quarter 2017. This higher level of net borrowing can be explained, in part, by banks’ temporary relaxation on amortisation requirements. This may have led to decreased amortisations on loans, which in turn led to a decreased subdued effect on households’ net borrowing. The annual growth rate on loans was 5.1 percent in the second quarter, which is in line with the previous quarter and is marginally higher than in 2019.