Philippine bank lending surges 20% to $141.95b in April

Loans to wholesale and retail trade rose 22.7% to $19.43b.

Philippine bank lending rose 19.9% YoY to $141.95b (PHP7.46t) in April led by heated financing demand from the real estate, wholesale and retail trade sectors, according to the central bank. 

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Loans to the real estate sector hit $23.99b (PHP1.26t), accounting for 16.9% of the total loan portfolio. Lending to wholesale and retail trade sectors as well as repair of motor vehicles and motorcycles similarly jumped 22.7% YoY to $19.43b (PHP1.02t) over the same period. Lending to the manufacturing sector also grew 14.4% to $18.93b (PHP991.88b).

Loan growth for household consumption dropped 19% along with growth in motor vehicle loans which slowed to 23.4% at $5.21b (PHP273.06b) as consumers ramped up spending ahead of the comprehensive tax reform programme implemented in January.

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“The slower increase in credit card loans and motor vehicle loans as well as the contraction in other types of household loans offset the faster expansion in salary-based general purpose consumption loans in April,” said Bangko Sentral ng Pilipinas central governor Nestor Espenilla.