Business loans growth slows to 8.2% as nonresident credit falls

Philippines loans decelerate amidst 10.4% nonresident decline.

Loans from the Philippines’ universal and commercial banks (U/KBs) to fund business activities expanded by 8.2% year-on-year (YoY) in January, data from the Bangko Sentral ng Pilipinas showed.

Industries where lending showed higher increments were: real estate activities (9.1% YoY); electricity, gas, steam and air-conditioning supply (20.3% YoY); wholesale and retail trade, repair of motor vehicles and motorcycles (8.3% YoY); financial and insurance activities (5.5% YoY); information and communication (4.9% YoY); and transportation and storage (19.1% YoY). 

The overall lending activity grew at a slower pace of 9.3% YoY. Outstanding loans to residents also jumped 9.9% YoY, also slower than the 10.10% YoY climb seen in the month before.

Outstanding loans to nonresidents fell by 10.4% YoY from an 8.0% YoY decline in the same period.

Consumer loans to residents surged by 21.3% YoY, albeit slower from 21.5% YoY a month prior.