Philippine’s bank loans expand by 9.6% YoY in April

It was higher than the previous month’s 9.4%.

Preliminary data showed that outstanding loans of universal and commercial banks (U/KBs) in the Philippines, excluding reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (central bank), grew by 9.6% year-on-year (YoY) in April, up from 9.4% in March. 

On a seasonally-adjusted monthly basis, these loans increased by 0.9% YoY.

Loans to residents, net of RRPs, rose by 9.6% YoY in April compared to 9.5% YoY in March, whilst loans to non-residents increased by 10.8% YoY in April.

Loans for production activities expanded by 7.8% YoY in April, driven by increases in key industries such as real estate activities (11.0% YoY), electricity and gas supply (9.2% YoY), wholesale and retail trade (7.6% YoY), transportation and storage (21.8% YoY), and construction (15.1% YoY).

Consumer loans to residents grew by 25.3% YoY in April, slightly down from 25.4% in March, driven by credit card, motor vehicle, and salary-based general purpose consumption loans.

Looking ahead, the BSP will ensure that domestic liquidity and credit conditions support its price and financial stability objectives.