Central Bank of the Philippines reports May universal and commercial bank loan growth of 11.3 percent year on year

The Central Bank of the Philippines published preliminary data showing outstanding loans from universal and commercial banks rose by 11.3 percent year on year in May, up from 11.2 percent in April, supported by both business and consumer lending. On a seasonally adjusted basis, outstanding loans increased by 0.9 percent month on month. Lending to residents grew by 11.8 percent year on year, while outstanding loans to non-residents fell by 6.6 percent. Loans for business activities expanded by 10.2 percent, with growth easing slightly amid slower increases in lending to real estate activities (8.7 percent), wholesale and retail trade and repair of motor vehicles and motorcycles (9.8 percent), and transportation and storage (14.0 percent), while loans to manufacturing declined by 3.0 percent. Consumer loans to residents grew by 23.7 percent and covered car, motorcycle, credit card, and general-purpose salary loans. The release notes that the loan series excludes universal and commercial banks’ reverse repurchase agreements with the BSP, and that non-resident loans include foreign currency deposit units’ loans to non-residents; the BSP also reiterates it monitors bank lending as a key monetary policy transmission channel and will seek to keep liquidity and lending conditions aligned with its price and financial stability objectives.