Financial markets in Germany experienced a significant recovery in the second quarter of 2026 following uncertainty in the first quarter. This rebound led to a marked increase in households' financial assets, which reached €9,831 billion by the end of the quarter, representing a €335 billion increase compared to the previous quarter. The growth was primarily fueled by exceptionally large positive valuation effects totaling €258 billion, with capital market-related investments accounting for €202 billion of that gain and insurance and pension claims contributing €48 billion.
Investment fund shares saw particular demand, increasing by €33 billion. Additionally, the growth in financial assets was supported by a €77 billion increase in financial claims, a figure slightly above the average of the past five years. This included rises in cash, sight deposits, time deposits, and a reversal of the downward trend in savings deposits and savings bonds that had been observed since mid-2024. Households also purchased debt securities worth €7 billion on balance, a level similar to the previous quarter.
Despite the aggregate growth, the real total return—which is the return adjusted for inflation—revealed significant disparities across wealth groupings. The wealthiest 10% of households benefited from high positive returns on shares and investment fund shares due to favorable equity market developments. In contrast, the less wealthy half of households (the bottom 50% of the distribution) continued to record a negative real return of approximately −0.7%, as their holdings in deposits and insurance claims were heavily impacted by rising inflation.
Across all households, the aggregate real total return for the year rose to approximately 3.2% in the second quarter of 2026. Households' liabilities grew slightly to €2,192 billion, driven largely by €12 billion in additional borrowing, primarily from domestic banks. However, the households' debt ratio—calculated as debt as a percentage of nominal gross domestic product—fell slightly to 47.5% due to the rise in nominal GDP.
In the non-financial corporation sector, external financing recovered to a total of €77 billion in the second quarter of 2026. This comprised €39 billion in borrowing and a €14 billion increase in the issuance of debt securities. However, the issuance of shares and other equity fell to €15 billion compared to the previous quarter, as the redemption of listed shares offset new issuances. At the end of the quarter, non-financial corporations' liabilities stood at €12,330 billion, a €255 billion increase from the previous quarter, aided by €178 billion in positive valuation effects.