Recent preliminary data reveals that in July, outstanding loans of universal and commercial banks (U/KBs), excluding reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP), witnessed a 7.7% year-on-year growth, a slight decrease from the 7.8% reported in June.
When assessed on a month-to-month seasonally-adjusted basis, these loans increased by 0.6% — consistent with June’s performance, the central bank data further showed.
A more detailed breakdown of the figures highlights a consistent 7.7% rise in outstanding loans to residents, down from 7.9% in June.
A notable observation is the marked surge in loans for production activities which grew by 6.2% in July, following a 6.3% hike the month before. This boost is largely attributable to escalating loan demands from critical sectors including:
- Electricity, gas, steam, and air conditioning supply, which saw a 10.6% upsurge.
- Wholesale, retail trade, and repair of motor vehicles and motorcycles at a 9.4% increase.
- Real estate activities at 5.0%.
- Information and communication with a significant 10.8% rise.
- Transportation and storage experiencing a robust 14.9% growth.
On the consumer front, loans to residents in July swelled by an impressive 22.6%, albeit a tad less than June’s 23.7%. This was predominantly steered by the mounting demand in credit card and motor vehicle loans.
In an international context, there was a clear uptick in the lending scenario, with outstanding loans to non-residents expanding by 6.2% in July, a marked progression from the 4.8% observed in June.
Despite these growth figures, the overall pace of bank lending has somewhat decelerated, reflecting the BSP’s firm monetary policy stance.
Moving forward, the BSP remains committed to monitoring and maintaining domestic liquidity and credit dynamics to align with its primary goals of price and financial stability.