Philippine bank lending accelerates to 10.7% in March on business demand

Consumer loans grew at a slightly slower pace on less motor vehicle and salary loans.

Philippine universal and commercial banks extended more loans in March due to increased demand from businesses whilst consumer loans slowed slightly, according to the Bangko Sentral ng Pilipinas (BSP).

Loan growth grew by 10.7% year-on-year (YoY) in March, a faster rate than the 9.6% growth in February, BSP’s preliminary data showed.

Loans meant to fund business activities expanded by 9.7% YoY in March, from an 8.6% growth in February.

Amongst sectors, loans rose for real estate activities; electricity, gas, steam, and air-conditioning supply; wholesale and retail trade; repair of motor vehicles and motorcycles; and transportation and storage.

Consumer loans to residents grew by 20.5%, slightly slower than February’s 20.8% growth.

The month saw a slowdown in motor vehicle loans and salary based general purpose consumption loans, the BSP said.