Bank lending grows by 11.2% YoY in April

PRELIMINARY data showed that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, expanded by 11.2 percent year-on-year in April from an 11.8 percent growth in March. On a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, increased by 0.3 percent.

Outstanding loans to residents, net of RRPs, grew at a slower rate of 11.9 percent in April from 12.4 percent in March. Meanwhile, outstanding loans to non-residents[1] decreased by 10.0 percent in April, following a 5.6-percent decline in the previous month.

Loans for production activities grew by 10.3 percent in April from 10.8 percent in March. Loan growth eased due to the  slower expansion in lending to key industries such as real estate activities (8.9 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (9.9 percent); manufacturing (0.6 percent); financial and insurance activities (7.5 percent); information and communication (7.7 percent); and transportation and storage (14.9 percent)

Consumer loans to residents grew 24.0 percent in April from 23.9 percent in March, driven by increased credit card loans.

Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability mandates. PR