Philippine bank lending rises on higher credit card, motor loan demand

Lending to key industries such as real estate and retail trade also rose.

Philippine banks’ lending rose by 12.8% year-on-year (YoY) in January 2025, according to central bank data.

Outstanding loans to residents grew 13.3% YoY, faster than the 12.4% YoY growth recorded in December 2024.

Loans for production activities rose by 11.8% YoY in January on sustained increase in lending to key industries, according to the Bangko Sentral ng Pilipinas (BSP).

Lending to real estate (9.8%); electricity, gas, steam and air-conditioning supply (23.6%); wholesale and retail trade, repair of motor vehicles and motorcycles (13.9%); transportation and storage (21.4%); and manufacturing (4.6%) all rose.

Consumer loans to residents expanded by 24.4% YoY in January, slightly slower than the 25% YoY increase recorded in December 2024. Growth was driven by the increase in credit card and motor vehicle loans, the BSP said.