BSP says FCDU loans rose in Q4

Foreign currency deposit unit loans climbed 2.9% quarter on quarter to USD 15.56 billion in the fourth quarter of 2025, up by USD 435.61 million from USD 15.13 billion in the third quarter, according to a Bangko Sentral ng Pilipinas press release dated March 31, 2026.

The increase came even as the broader year-on-year picture remained softer. BSP said outstanding FCDU loans were down 1.6% from USD 15.82 billion at the end of December 2024.

Of the total outstanding loans, 66.8% went to Philippine-based borrowers, equivalent to USD 10.391 billion, while the remaining 33.2%, or about USD 5.170 billion, were extended to non-residents.

In the previous quarter, Philippine residents accounted for 63.4%, or USD 9.592 billion, and non-residents 36.6%, or USD 5.534 billion. A year earlier, residents made up 62.7%, or USD 9.913 billion, and non-residents 37.3%, or USD 5.910 billion.

Among domestic borrowers, the largest shares were merchandise and service exporters at 25.6%, towing, tanker, trucking, forwarding, personal, and other industries at 24.1%, and power generation companies at 16.7%, underscoring how foreign currency lending remained concentrated in trade-linked and infrastructure-related activities.

BSP also listed public utilities at 3.1%, or USD 477 million, and producers or manufacturers, including oil companies, at 7.1%, or USD 1.104 billion.

Most of the loans remained medium- to long-term. BSP said loans with maturities of more than one year accounted for 79.2% of the total, or USD 12.318 billion, slightly below 79.8%, or USD 12.068 billion, in the previous quarter and above 77.1%, or USD 12.202 billion, a year earlier.

Short-term loans made up 20.8%, or USD 3.243 billion, compared with 20.2%, or USD 3.057 billion, in the third quarter and 22.9%, or USD 3.618 billion, at end-December 2024.

As of end-December 2025, the outstanding loan stock reflected USD 8.32 billion in new loans and USD 7.87 billion in repayments during the reference quarter, indicating that fresh lending slightly outpaced payments.

BSP also reported that foreign currency deposits continued to grow faster than loans. FCDU deposit liabilities reached USD 59.83 billion, up 7.9% from USD 55.46 billion a year earlier and below USD 60.732 billion in the previous quarter.

Based on the accompanying table, the overall loans-to-deposits ratio stood at 26.0% at end-December 2025, compared with 24.9% at end-September 2025 and 28.5% a year earlier.

By lender type, local banks accounted for 83.0% of outstanding FCDU loans, or USD 12.920 billion, while foreign bank branches and subsidiaries held 17.0%, or USD 2.641 billion.

Within local banks, commercial banks dominated with USD 12.897 billion, or 82.9%, and thrift banks contributed USD 23 million, or 0.0% on a rounded basis. Foreign bank branches carried USD 2.254 billion, or 14.5%, while subsidiaries accounted for USD 387 million, or 2.5%.

For comparison, local banks held USD 12.713 billion, or 84.0%, of the total in the third quarter and USD 13.514 billion, or 85.4%, a year earlier.

Foreign bank branches and subsidiaries accounted for USD 2.413 billion, or 16.0%, in the previous quarter and USD 2.305 billion, or 14.6%, at end-December 2024.

The release’s statistical annex also listed weighted average interest rates of 4.4555% and 5.0723% for the reported periods, adding another indicator of funding conditions in the foreign currency loan market.

FCDU loans are foreign currency-denominated loans extended by FCDUs of local banks or local branches of foreign banks authorized by BSP to undertake foreign currency transactions.

The central bank said these facilities support activities that require foreign exchange, including those of importers, businesses, and individuals with foreign currency obligations.

The latest figures suggest that while foreign currency lending rebounded on a quarterly basis in the final three months of 2025, banks and borrowers were still operating in a more cautious environment than a year earlier, with deposits growing faster than loan demand and the share of resident borrowers continuing to edge up.