, Philippines

Philippine bank loans grow 16.8% to $155.85b in November

This represents a slower growth rate compared to October.

Philippine bank loans expanded at a slower pace of 16.8% in November to $155.85b (PHP8.13t) from 18.1% in October amidst the rising interest rate environment, according to central bank data.

Also read: Emerging Asian banks may outpace developed peers in credit gains

Loans for production activities, which constituted 88.7% of banks’ aggregate loan portfolio, also rose at a slower pace of 17.2% in November from 18.7% in November. Construction drove lending gains after accounting for 38.1% of production loans followed by financial and insurance activities (29.4%), wholesale and retail trade, repair of motor vehicles and motorcycles (19.7%); manufacturing (16%); real estate activities (12.5%); electricity, gas, steam and airconditioning supply (11%).

Similarly, loans for household consumption slowed to 13.8% in November from 14.6% in the previous month due to a weaker expansion in credit card loans, motor vehicle loans and salary-based general purpose consumption loans.

Banks in the Philippines have been booking double-digit growth in loans over the past months in line with the government’s ongoing infrastructure drive. As a result, however, capital ratios are set to decline amids the banking sector’s rapid lending activities. “Capital ratios will decline due to fast loan growth, but the banks’ ability to raise external capital will limit capital erosion,” Moody’s Investors Service said in an earlier statement.

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

What is Lorem Ipsum?
What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Exclusives

Sed molestie interdum dui sit amet egestas
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
CIMB Niaga leads the way in captivating Indonesia’s youth
The bank’s digital solutions are winning over younger generations with 3.2M mobile users and 96% digital transaction rate in 2023.