Bank lending grows 11.4 percent in April, fastest in 9 months

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June 8, 2026 | 12:00am

MANILA, Philippines — Credit growth accelerated for a third straight month in April, reaching its fastest pace in nine months as stronger borrowing by businesses offset a slight slowdown in consumer loans.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that outstanding loans of universal and commercial banks expanded by 11.4 percent year-on-year in April, faster than the 10.7 percent growth recorded in March.

The latest reading was the strongest since July 2025, when bank lending grew by 11.8 percent. On a seasonally adjusted basis, outstanding loans rose by 1.1 percent month-on-month in April, which the BSP said reflected banks’ expectations of steady loan demand from businesses and households in the second quarter of 2026.

In terms of value, total loans reached P14.75 trillion in April, rising by P1.5 trillion from P13.25 trillion a year earlier.

The pickup in lending was largely driven by business activity. Loans extended for production activities grew by 10.7 percent in April, accelerating from 9.7 percent in March. Outstanding production loans amounted to P12.46 trillion, accounting for about 84.5 percent of total bank lending.

Several major sectors posted stronger credit growth during the month.

Loans to the electricity, gas, steam and air-conditioning supply sector surged by 25.8 percent to P2.04 trillion, making it one of the strongest contributors to overall lending growth.

Credit to wholesale and retail trade, including repair of motor vehicles and motorcycles, rose by 11.8 percent to P1.66 trillion, faster than the 9.3-percent growth recorded a month earlier.

Lending to transportation and storage increased by 24.7 percent to P626.53 billion, while loans to financial and insurance activities expanded by 6.7 percent to P1.13 trillion.

Meanwhile, manufacturing loans returned to positive territory, growing by one percent to P1.27 trillion after contracting by 3.3 percent in March.

Real estate remained the largest borrower from the banking system, with outstanding loans reaching P2.88 trillion, although growth slowed slightly to 8.1 percent from 8.8 percent previously.

Meanwhile, consumer lending continued to post double-digit growth, although the pace moderated. Consumer loans to residents rose by 19.6 percent year-on-year in April, slower than the 20.5 percent expansion in March, reflecting softer growth in credit card and motor vehicle loans.

Credit card loans remained the largest component of household borrowing, climbing by 26.6 percent to P1.25 trillion. Motor vehicle loans grew by 11.6 percent to P539.82 billion, while salary-based general purpose consumption loans increased by 6.1 percent to P170.24 billion.

“The BSP monitors bank loans because they are a key transmission channel of monetary policy,” the central bank said.

Separate BSP data showed that domestic liquidity (M3) grew by 12.2 percent year-on-year to P20.3 trillion in April, slightly slower than the the revised 12.1 percent a month ago.

M3 is a broad measure of money supply that includes currency in circulation, bank deposits and other financial assets that are readily convertible to cash.

Looking ahead, the BSP said it would continue to ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives.