Bank Loans Rise By 10.6%

Outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP), grew by 10.6% year-on-year in October, slightly slower than the 11.0% expansion recorded in September, according to preliminary data from the BSP.

On a month-on-month seasonally adjusted basis, outstanding U/KB loans, net of RRPs, increased by 0.9%. I Bank of the Philippine Islands Facebook

On a month-on-month seasonally adjusted basis, outstanding U/KB loans, net of RRPs, increased by 0.9%.

Loans to residents, net of RRPs, grew by 10.7% in October, compared to 11.3% in the previous month. Meanwhile, loans to non-residents rose by 6.8% in October, rebounding from a 0.3% contraction in September.

Loans for production activities expanded by 9.1% in October, down from 9.8% in September, driven by sustained lending to key industries such as real estate activities (11.3%), wholesale and retail trade and repair of motor vehicles and motorcycles (7.2%), and manufacturing (8.8%).

Consumer loans to residents increased by 23.6% in October, slightly higher than the 23.4% growth in September.

This was mainly attributed to the rise in credit card and motor vehicle loans.

Looking ahead, the BSP emphasized its commitment to ensuring that domestic liquidity and lending conditions align with its primary mandate of maintaining price and financial stability.