BANK lending to the real estate sector in the Philippines grew at a slower pace in May, contributing to a slight moderation in overall credit expansion, even as demand from both businesses and consumers remained firm.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that loans extended by universal and commercial banks to real estate activities rose by 8.7 percent year-on-year in May, easing from the previous month’s pace. The sector was among the key drivers of business lending but saw slower expansion alongside wholesale and retail trade (up 9.8 percent) and transportation and storage (up 14 percent).
Despite the sectoral slowdown, total outstanding bank loans rose by 11.3 percent year-on-year in May, marginally higher than April’s 11.2 percent. Seasonally adjusted data showed a 0.9 percent increase from the previous month.
Business loans grew by 10.2 percent, while consumer lending remained strong, expanding by 23.7 percent in May from 24 percent in April. Consumer loans include credit card, auto, motorcycle and salary loans.
Loans to residents increased by 11.8 percent year-on-year, while loans to non-residents fell by 6.6 percent, continuing a declining trend from April’s 10 percent drop. / KOC