Bank loans sustained their double-digit growth in November 2024 after the Bangko Sentral ng Pilipinas (BSP) began its monetary easing cycle.
Data from the BSP showed that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, expanded by 11.1 percent year-on-year in November from 10.6-percent in October.
On a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, rose by 1.0 percent.
Loans reached P12.67 trillion in November, up from P11.40 trillion a year ago. They also increased from P12.51 trillion registered in October.
Outstanding loans to residents, net of RRPs, grew by 11.3 percent in November from 10.7 percent in the previous month. Outstanding loans to non-residents expanded at a slower rate of 3.8 percent in November from 6.9 percent in October.
Outstanding loans to non-residents include loans by UKB’s foreign currency deposit units (FCDUs) to non-residents.
Data showed that loans for production activities went up by 9.8 percent in November, faster than 9.1 percent in October, on sustained increase in lending to key industries such as wholesale and retail trade, repair of motor vehicles and motorcycles (9.1 percent); electricity, gas, steam and air-conditioning supply (9.6 percent); and financial and insurance activities (4.4 percent).
Consumer loans to residents grew 23.3 percent in November following the 24-percent increase seen in October, driven by higher credit card and motor vehicle loans.
Consumer loans amounted to P1.54 trillion in November, including P894 billion in credit card receivables, P450.68 billion in motor vehicle loans and P155 billion in salary loans.