CONSUMER LOANS KEEP DOUBLE-DIGIT GROWTH

SALARY-BASED consumer loans continued to grow by double digits in November last year, according to data released by the Bangko Sentral ng Pilipinas (BSP).

Data showed salary-based general purpose consumption loans jumped 67.2 percent to P124.045 billion as of November 2022 from P74.205 billion in November 2021.

This accounted for 1.2 percent of the net of reverse repurchase (RRP) placements of universal and commercial banks (U/KBS) with the BSP which amounted to P10.639 trillion in November 2022.

“Sustained growth in credit and domestic liquidity will continue to support economic activity and domestic demand. Looking ahead, the BSP will ensure that liquidity and lending dynamics remain consistent with its primary mandate of promoting price and nancial stability,” BSP said.

BSP data showed the outstanding loans of U/KBS, RRP placements with the BSP, grew by 13.7 percent year-on-year in November from 13.9 percent in October.

On a month-on-month seasonally-adjusted basis, BSP said the outstanding universal and commercial bank loans, net of RRPS, rose by 0.3 percent.

Of this amount, consumer loans to residents of P1.01 trillion rose by 24.1 percent in November from 22.6 percent in the previous month, mainly driven by the year-on-year increase in credit card loans which grew 26.5 percent to P539.246 billion; and motor vehicle loans which increased 8.7 percent to P325.892 billion.

BSP data also showed outstanding loans to non-residents grew by 24.8 percent in November after expanding by 33 percent in the previous month.

Meanwhile, outstanding loans to residents, net of RRPS, went up by 13.4 percent in November after increasing by 13.3 percent (revised) in the previous month.

Outstanding loans for production activities grew by 12.4 percent in November from the same pace

as in October, due mainly to the sustained expansion in loans to key sectors.

These key sectors include those for real estate activities which posted a growth of 12.2 percent; manufacturing, 15.6 percent; nancial and insurance activities, 13.1 percent; and information and communication, 24.3 percent.