The Bangko Sentral ng Pilipinas (BSP) said Friday bank loans grew 12.8 percent year-on-year in January 2025 despite the slowdown in money supply.
Data showed that domestic liquidity (M3) or the money supply circulating in the financial system increased 6.8 percent year-on-year in January, slower than the 7.7-percent increase in December. On a month-on-month seasonally adjusted basis, M3 declined 5 percent to P18.1 trillion as of end-January.
Domestic claims expanded 10.9 percent year-on-year in January, slower than 10.4 percent in December. Claims on the private sector grew 13.1 percent in January from 12.2 percent in the previous month, with the continued expansion in bank lending to non-financial private corporations and households.
Net claims on the central government rose 7.4 percent after the 7.2-percent rise in December on higher borrowings by the national government.
Net foreign assets (NFA) in peso terms increased 2.6 percent year-on-year in January, compared to the 6-percent rise in December. The BSP’s NFA expanded by 4.2 percent.
The NFA of banks declined largely on account of higher foreign currency-denominated bills and bonds payable.
Meanwhile, the outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, climbed 12.8 percent year-on-year in January 2025, faster than the 12.2-percent increase in December 2024.
The BSP said that on a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, grew by 1.4 percent.
Outstanding loans to residents, net of RRPs, grew by 13.3 percent in January, from a 12.4-percent growth a month earlier. Outstanding loans to non-residents decreased by 3.5 percent in January, following a 5.7-percent increase in the previous month.
Loans for production activities rose 11.8 percent in January from 10.8 percent in December, on sustained increase in lending to key industries such as real estate (9.8 percent); electricity, gas, steam, and air-conditioning supply (23.6 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (13.9 percent); transportation and storage (21.4 percent); and manufacturing (4.6 percent).
Consumer loans to residents expanded 24.4 percent in January from 25.0 percent in December, driven by the increase in credit card and motor vehicle loans.
“Looking ahead, the BSP will continue to ensure that domestic liquidity and lending conditions remain aligned with its price and financial stability mandates,” the BSP said.
