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Croatians' financial assets increase by HRK 57.7b in last 7 yrs

ZAGREB, Nov 2 (Hina) - Croatians' financial assets at the end of July 2014 totalled HRK 330.4 billion, 2.1% more than the estimated GDP for 2014 and HRK 57.7 billion more in nominal terms than in 2007, shows an analysis on household saving trends in Croatia done by Zagrebacka Banka.

In 2007 - the last pre-crisis year - household financial assets accounted for only 85.7% of GDP.

In the first seven months of 2014 alone, total household financial assets increased by HRK 10.6 billion. Assets in pension funds increased by HRK 4.25 billion, bank deposits went up 2.4 billion, and cash by 2 billion.

The estimated life insurance reserves increased this year as well, by one billion kuna, as did the value of investments in stocks and bonds, by 0.7% or HRK 0.15 billion.

The value of household investments in investment funds increased as well, by around 84 million kuna, owing to the financial market's beginning to recover.

Bank deposits and cash account for the largest portion of household financial assets, 55.3% and 11.2% respectively, while all the other types of investment account for only one third. Household pension savings in mandatory and voluntary pension funds account for 19.7% of all household financial assets, growing at a rate of 7%.

Mathematical life insurance reserves make up 4.5% of household financial assets, an increasingly important segment of those assets, while investments in stocks and in investment funds accounted for 4.7% and 2.2% of household financial assets respectively.

"The euphoria that had marked investments in shares on stock markets until 2007 was replaced by long-term mistrust of their profitability following the deflation of the price balloon following the start of the global financial crisis. This year, however, mild signs of recovery on the capital market are being felt, as evidenced by the growth of stock market indices and the value of performed transactions," reads the analysis.

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