Loans to wholesale and retail trade rose 22.7% to $19.43b.
Philippine bank lending rose 19.9% YoY to $141.95b (PHP7.46t) in April led by heated financing demand from the real estate, wholesale and retail trade sectors, according to the central bank.
Loans to the real estate sector hit $23.99b (PHP1.26t), accounting for 16.9% of the total loan portfolio. Lending to wholesale and retail trade sectors as well as repair of motor vehicles and motorcycles similarly jumped 22.7% YoY to $19.43b (PHP1.02t) over the same period. Lending to the manufacturing sector also grew 14.4% to $18.93b (PHP991.88b).
Loan growth for household consumption dropped 19% along with growth in motor vehicle loans which slowed to 23.4% at $5.21b (PHP273.06b) as consumers ramped up spending ahead of the comprehensive tax reform programme implemented in January.
“The slower increase in credit card loans and motor vehicle loans as well as the contraction in other types of household loans offset the faster expansion in salary-based general purpose consumption loans in April,” said Bangko Sentral ng Pilipinas central governor Nestor Espenilla.
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