Bank loans grew faster in April on improving demand from companies, the Bangko Sentral ng Pilipinas (BSP) said Friday.
The BSP said outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements, expanded by 9.6 percent year-on-year in April. This was faster than the 9.4-percent growth registered in March.
“On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, increased by 0.9 percent,” the BSP said.
Data show that outstanding loans to residents, net of RRPs, rose 9.6 percent in April, from 9.5 percent in March, while outstanding loans to non-residents went up by 10.8 percent in April, also faster than 9.1 percent in the previous month.
Outstanding loans for production activities expanded by 7.8 percent in April, faster than 7.7 percent in March, driven by the rise in lending to key industries.
These include real estate activities where loans went up 11.0 percent; electricity, gas, steam and air-conditioning supply (9.2 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (7.6 percent); transportation and storage (21.8 percent); and construction (15.1 percent).
Consumer loans to residents grew 25.3 percent in April, slightly slower than the 25.4-percent growth in March. The BSP noted the sustained increase in credit card, motor vehicle and salary-based general purpose consumption loans.
“Looking ahead, the BSP will ensure that domestic liquidity and credit conditions remain in line with its price and financial stability objectives,” the BSP said.
Meanwhile, domestic liquidity (M3) or money supply grew by 5.6 percent year-on-year to P17.2 trillion in April 2024, slightly slower than the 5.7-percent increase seen in March.
“On a month-on-month seasonally-adjusted basis, M3 increased by about 0.5 percent,” the BSP said.
Domestic claims expanded by 10.6 percent year-on-year in April from the revised 10.9 percent in the previous month.
Claims on the private sector grew 10.8 percent in April from the revised 11 percent in March, with the sustained expansion in bank lending to non-financial private corporations and households.
Net claims on the central government expanded by 13.9 percent from 15.1 percent in the previous month due in part to the decline in the deposits of the national government with the BSP.
Net foreign assets (NFA) in peso terms rose 2.1 percent year-on-year in April, slower than 5.0 percent in March. The BSP’s NFA grew by 4.6 percent. The NFA of banks contracted on account of higher bills and bonds payable.
