Bank lending grows 17% to P5.4 T in June
STRONG DEMAND FROM CORPORATE, RETAIL BORROWERS
The growth of loans extended by banks remained steady in June due to strong demand from corporate and retail borrowers on the back of the country’s sustained economic growth, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
BSP Governor Amando Tetangco Jr. said outstanding loans of commercial banks grew 17.6 percent to hit P5.41 trillion in endJune from P4.6 trillion in the same period last year.
Tetangco said loans for production activities increased 17.7 percent to P4.83 trillion from P4.1 trillion and accounted for 89.4 percent of the bank’s total loan portfolio in end-June.
Loans to real estate activities went up 20.7 percent to P947.69 billion, while lending to the manufacturing sector increased 9.3 percent to P775.36 billion.
Loans to the wholesale and retail trade as well as repair of motor vehicles and motorcycles rose 15.3 percent to P758.26 billion for a 14 percent share while lending to electricity, gas, steam and airconditioning supply jumped 30 percent to P619.36 billion for an 11.5 percent share.
Tetangco also reported loans for household consumption expanded 18.8 percent to P423.96 billion in end- June this year from P356.92 billion in the same period last year.
Statistics showed motor vehicle loans soared 36.9 percent to P179.21 billion from P130.95 billion, while credit card loans went up eight percent to P178.58 billion from P165.78 billion.
Salary-based general consumption loans jumped 40.6 percent to P50.66 billion from P34.98 billion.
“Going forward, the BSP will continue to ensure that domestic credit and liquidity conditions will keep pace with overall economic growth while remaining consistent with its price and financial stability objectives,” Tetangco said.
The country’s gross domestic product (GDP) growth accelerated to 6.9 percent in the first quarter from the revised 6.5 percent in the fourth quarter of last year amid robust spending and strong investments.
The Duterte administration has penciled a lower GDP growth of six to seven percent instead of between 6.8 and 7.8 percent this year as it intends to spend more for infrastructure.
President Duterte has raised its budget deficit ceiling to three percent of GDP instead of two percent of GDP under the administration of former President Benigno Aquino III.