Bank lending growth eases in January

February 28, 2019

Preliminary data from the Bangko Sentral ng Pilipinas show outstanding loans of universal and commercial banks, net of reverse repurchase placements (RRP) with the BSP, grew at a slower rate of 15.3 percent in January from the 15.7 percent (revised) in December.

Growth in bank lending inclusive of RRPs decelerated to 14.4 percent in January from 14.8 percent (revised) in the previous month.

On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs and inclusive of RRPs both increased by 0.9 percent.

Loans for production activities—which comprised 88.6 percent of banks' aggregate loan portfolio, net of RRP — increased at a slower pace of 15.5 percent in January from 15.8 percent in the previous month.

The growth in production loans was driven by increased lending to the following sectors: wholesale and retail trade, repair of motor vehicles and motorcycles (16.5 percent); financial and insurance activities (26.5 percent); manufacturing (14.8 percent); real estate activities (10.7 percent); electricity, gas, steam and airconditioning supply (11.9 percent); and, construction (45.8 percent).

Bank lending to other sectors also increased except  in professional, scientific and technical activities which contracted by 13.2 percent.

Growth of loans for household consumption was lower in January at 12.7 percent relative to the 13.6-percent (revised) growth in December.

The deceleration in credit card loans and motor vehicle loans as well as the contraction in salary-based general purpose consumption loans offset the expansion in other types of household loans during the month. DMS