Philippine bank lending up 8.6% in Feb on higher motor and card loans

Consumer loans grew 25.2% partly due to demand for motor vehicle loans rising.

Loans extended by banks in the Philippines rose by 8.6% in February, extending the 7.8% growth in January, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

Outstanding loans to residents rose by 8.7% during the same month, central bank data showed. This is a faster rise than the 7.8% loan growth in January.

Notably, consumer loans to residents grew by 25.2% in February, the same rate as in January, on the sustained increase in credit card and motor vehicle loans, according to the BSP.

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Outstanding loans to non-residents also grew by 6.5%, although it was slower than the 9.8% loan growth in January.

Loans for production activities grew by 6.8% in February, from 5.9% in January, driven by an increase in lending to key sectors such as real estate (11.6%) as well as electricity, gas, steam, and airconditioning supply (11.2%).

Other key sectors that recorded loan growth include wholesale and retail trade, and repair of motor vehicles and motorcycles (7.1%); transportation and storage (21.1%); and manufacturing (5.9%).