Philippine banks’ extended 10.1% more loans in May

Loans to residents rose 10.2% and consumer loans jumped 25.6%.

Outstanding loans held by Philippine universal and commercial banks rose 10.1% year-on-year (YoY) in May, according to data released by the central bank in July.

This is a sharper rise than in April (9.6% YoY). Compared to April, loans in May were 1.1% higher, according to the Bangko Sentral ng Pilipinas (BSP).

Outstanding loans extended to residents rose by 10.2% YoY in May, whilst loans to non-residents were 8.1% YoY higher over the same period.

Consumer loans to residents jumped 25.6% in May, driven by an increase in credit card, motor vehicle, and salary-based general purpose consumption loans.

By sector, loans for production activities grew 8.4% in May, a faster loan growth from the 7.8% growth recorded in April. This was driven by an increase in real estate loans (13.2%), wholesale and retail trade including repair of motor vehicles and motorcycles (11.1%), manufacturing (10.1%), and transportation and storage (26.7%).

Loans for electricity, gas, steam, and airconditioning supply also recorded a 7.7% YoY growth in May.