Philippines’ bank loans grow by 10.4% in July – report

Philippine universal and commercial banks (U/KB) reported a 10.4 per cent year-on-year growth in their loan portfolios, excluding reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP), in July.

This marks a slight acceleration from the 10.14 per cent increase observed in June. On a month-on-month, seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, rose by 0.84 per cent.

Outstanding loans to residents, net of RRPs, also grew by 10.44 per cent in July, matching the previous month’s rate. Conversely, loans to non-residents increased by 9.24 per cent, a slowdown from the 9.84 per cent growth recorded in June.

In July, loans increased by 8.8 per cent, compared to 8.3 per cent in June. Growth was driven by real estate activities (12.0 per cent), professional services (438.3 per cent), manufacturing (7.9 per cent), transport (20.6 per cent), and wholesale/retail trade (6.0 per cent).

Consumer loans to residents grew at a slightly slower rate of 24.3 per cent in July compared to 25.0 per cent in June, primarily due to changes in credit card lending, according to a preliminary data published by BSP.

Attribution: Bangko Sentral ng Pilipinas report

Subediting: Y.Yasser