Philippine bank lending up 7.8% in January: central bank

Salary-based loans and motor vehicle loans pushed consumer loans to a 25.2% growth.

Bank lending in the Philippines rose 7.8% in January, according to the latest data from the central bank.

This is faster than the 7.1% rise recorded for December 2023, according to the Bangko Sentral ng Pilipinas (BSP).

Outstanding universal and commercial bank loans rose by 0.8%.

Outstanding loans to residents climbed 7.8% in January, faster than the 7.4% reported in December 2023.

Notably, consumer loans to residents rose 25.2% in January, extending the 23.9% increase recorded in December. This was driven by a sustained increase in credit card and motor vehicle loans, as well as salary-based loans.

Outstanding loans to non-residents grew by 9.8% during the same month, reversing the 2.9% decline in December 2023.

Outstanding loans for production activities recorded a 5.9% rise in January, faster than the 5.6% rise in December.

Loans to major industries notably increased during the month, the BSP noted. Loans to real estate activities rose 11.4%; for wholesale and retail trade, and repair of motor vehicles and motorcycles, by 7.4%; and for electricity, gas, steam, and airconditioning supply, by 7.3%.

Loans to the transportation and storage industry also recorded an 18.2% rise, whilst loans to the construction industry increased by 13.6%.