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Keisha Ta-Asan - The Philippine Star
June 3, 2025 | 12:00am
Outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, went up by 11.2 percent to P13.25 trillion in April. On a seasonally adjusted month-on-month basis, bank lending increased by 0.3 percent.
Businessworld / PJCOMP-FREEPIK
MANILA, Philippines — Credit growth eased in April, rising by only 11.2 percent from an 11.8-percent growth in March, as banks slowed their lending to key production sectors, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, went up by 11.2 percent to P13.25 trillion in April. On a seasonally adjusted month-on-month basis, bank lending increased by 0.3 percent.
Lending growth in April marked the slowest pace since November last year lending expanded by 11.1 percent.
“Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability mandates,” the central bank said.
Credit extended to residents, net of RRPs, grew at a slower pace of 11.9 percent in April, down from 12.4 percent the previous month. Meanwhile, loans to non-residents declined further by 10 percent, deeper than the 5.6-percent contraction seen in March.
Lending for production activities, which made up the bulk of bank credit, rose by 10.3 percent. This is slightly lower than the 10.8 percent in March.
Growth slowed in several key sectors including real estate (8.9 percent), wholesale and retail trade (9.9 percent), manufacturing (0.6 percent), financial and insurance activities (7.5 percent), information and communication (7.7 percent) as well as transportation and storage (14.9 percent).
In contrast, consumer loans to residents grew by 24 percent in April, slightly faster than March’s 23.9 percent, fueled mainly by robust credit card borrowing.
Credit card receivables surged by 29.3 percent to P985.3 billion in April from P762.19 billion in the same month in 2024. This was a tad faster than the 29 percent growth a month ago.
Auto loans rose by 19 percent to P483.82 billion from P406.6 billion, while salary-based general-purpose consumption loans inched up by 9.3 percent to P160.38 billion.
Bank lending is a key driver of economic activity as it reflects the confidence of consumers and businesses to borrow and invest. Slower credit growth may signal more cautious sentiment or tighter financial conditions.
