Philippine bank lending slows in August

Outstanding loans of Philippine commercial banks slowed to 14 percent in August from 16 percent in July.

According to percent a Bangko Sentral ng Pilipinas report, the big banks’ loans net of reverse repurchase totaled P2.982 trillion compared to P2.977 trillion in July.

With RRPs, total loans amounted to P3.239 trillion in the first eight months, posting a growth of 12.4 percent from 15.2 percent in July.

Outstanding bank loans have sustained double-digit growth since the start of 2012 since with the ample liquidity conditions, credit growth seem assured.

Based on the latest central bank data the domestic liquidity growth expanded 6.2 percent in August to P4.6 trillion. This was a more moderate growth compared to end-July’s 8.7 percent.

Loans for production activities which accounted for more than four-fifths of total loan portfolio expanded by 14.1 percent, lower than the growth recorded in July of 16.4 percent.

Total loan by production activity amounted to P2.717 trillion, a similar amount in July.

Consumer loans posted a small increase of 15.8 percent from 15.4 percent in July. Consumer loans include automotive loans, credit card loans and other loans such as salary loans. Housing loans are reported separately by the BSP.

It totaled P243.151 billion, of which credit card loans amounted to P137.666 billion while automotive loans totaled P78.6 billion.

Loans to the real estate/renting/business services mirrored its July performance of 24.7 percent or an amount of P515.806 billion while lending to the sectors financial intermediation, transportation/storage/communication, and electricity/gas/water increased by 26.7 percent, 28.9 percent and 15.9 percent, respectively, to P270.337 billion, P227.21 billion and P281.419 billion.