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Thursday, February 29, 2024

Bank loans climb 13.4% as economy sustains recovery

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Bank loans expanded by 13.4 percent in September, faster than the 12.2-percent increase in August, on sustained demand for credit as the economy continues to recover from the impact of the global health crisis, the Bangko Sentral ng Pilipinas said Monday.

Data showed that on a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of placements with the Bangko Sentral, increased 1.7 percent.

“The continued expansion in lending activity and ample liquidity will support the recovery of economic activity and domestic demand. Looking ahead, the BSP will ensure that liquidity and lending conditions remain consistent with its price and financial stability mandates,” the BSP said in a statement.

Outstanding loans to residents, net of reverse repurchase, rose 13.0 percent in September following an expansion of 12.1 percent in August.

Outstanding loans for production activities also went up by 12.3 percent in September from an 11.5-percent increase in the previous month, on higher lending to real estate activities (16.3 percent); manufacturing (16.2 percent); information and communication (25.5 percent); and wholesale and retail trade, repair of motor vehicles and motorcycles (10.8 percent).

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Consumer loans to residents grew by 20.5 percent in September, faster than 18.3 percent in August, driven by the year-on-year increase in credit card loans, motor vehicle loans and salary-based general purpose consumption loans.

Outstanding loans to non-residents went up by 26.6 percent in September after a 16.3-percent expansion in the previous month.

The BSP also said that domestic liquidity or M3 grew by 5.0 percent year-on-year to about P15.4 trillion in September, slower than the 6.7-percent growth in August. On a month-on-month seasonally-adjusted basis, M3 decreased by 0.2 percent.

Domestic claims rose 10.8 percent year-on-year in September from the revised 11.4 percent in the previous month, on improved bank lending to the private sector.

Claims on the private sector grew by 10.1 percent in September from 8.9 percent in August with the sustained expansion in bank lending to non-financial private corporations and households.

Meanwhile, net claims on the central government rose 15.3 percent in September from 21.2 percent in August owing to the sustained borrowing by the national government.

Net foreign assets in peso terms fell 1.7 percent in September following the 0.8-percent contraction in August. The NFA of banks declined mainly on account of higher bills payable. Meanwhile, the BSP’s NFA position was broadly steady year-on-year.

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