Philippine bank lending accelerates to 9.5% growth in February

Loans for residents and business activities expanded during the month.

Loans from universal and commercial banks in the Philippines grew by 9.5% year-on-year (YoY) in February, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

This extends the 9.3% YoY growth recorded in January.

Outstanding loans to residents rose by 10.1% in February, faster than the 9.9% growth a month earlier.

Outstanding loans to non-residents dropped by 13.2% during the same period, widening from the 10.4% decline in January.

Loans meant to fund business activities expanded by 8.6% in February, from an 8.2% growth in January.

Lending to electricity, gas, steam, and air-conditioning supply rose by 23.5%; to real estate activities by 9%; to wholesale and retail trade, and repair of motor vehicles and motorcycles by 8.2%; to transportation and storage by 19.3%; and to water, supply, sewerage, and waste management and remediation activities by 26%.

Consumer loans to residents grew by 20.8% in February, slower than the 21.3% growth a month before, on a “modest slowdown in credit card and motor vehicle loans,” the BSP said.