Bank loans

Bank loans rose 8.5% in January for a sixth consecutive month of growth

Bank lending by universal and commercial banks rose for the sixth consecutive month at a faster pace of 8.5% in January, after the revised rise of 4.8% in December.

“Bank lending improved further as the easing of COVID-19 related restrictions and the continued rollout of the vaccine supported market sentiment and demand. On a seasonally adjusted monthly basis, outstanding universal bank lending and trading, net of RRPs, increased by 3.0%,” the Bangko Sentral ng Pilipinas said in a statement on Monday.

Outstanding loans to residents, net of reverse repos with the BSP, increased by 8.7% in January after 4.8% in December, taking into account the acceleration in the growth of loans to activities of production.

Outstanding loans to production activities increased by 9.6% in January after 6.0% in December under the effect of the expansion of credit activity to real estate activities (+16.8% ); financial and insurance activities (17.1%); information and communication (31.4%); and manufacturing (11.5%).

Consumer loans to residents rose 0.1% in January after a revised decline of 5.9% in December, driven by the year-on-year rise in credit card loans. This is the first time household loans have shown growth since December 2020.

Outstanding loans to non-residents also increased by 2.8% in January against 2.5% the previous month.

Preliminary data also showed that domestic liquidity or money supply in the financial system increased by 9.8% year-on-year to around 15.3 trillion pula in January 2022, after a revised expansion of 7.3% in December. On a seasonally adjusted monthly basis, liquidity or M3 increased by 2.8%.