Philippine banks expand lending by 12.2% in Dec 2024

Loans for production activities rose 10.8% during the month.

Outstanding loans extended by Philippine universal and commercial banks grew 12.2% year-on-year (YoY) in December 2024, according to data from the Bangko Sentral ng Pilipinas (BSP).

Lending grew at a faster rate than the 11.1% YoY in November in part thanks to an increase in loans to non-residents and loans for production activities.

Outstanding loans to non-residents expanded 5.7% in December, 3.9% in November.

Loans for production activities rose 10.8% YoY in December on the back of sustained increase in lending to key industries such as wholesale and retail trade, repair of motor vehicles and motorcycles (10.1%); electricity, gas, steam and air-conditioning supply (14.2%); manufacturing (7.4%); financial and insurance activities (7.4%); and construction (12.6%). 

Consumer loans to residents went up 25% YoY in December, extending the 23.3% rise in November, due to the increase in credit card loans.  salary-based general purpose consumption loans, and motor vehicle loans.