Philippine Bank Lending Grows 11% in September

Bank lending by universal and commercial banks in the Philippines grew by 11.0% year-on-year in September 2024, surpassing the 10.7% growth recorded in August, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

On a month-on-month seasonally adjusted basis, outstanding loans, net of reverse repurchase placements, rose by 0.8%.

Outstanding loans to residents, excluding RRPs, increased by 11.3% in September, an acceleration from August’s 10.9%.

However, lending to non-residents fell by 0.3%, reversing a 1.5% rise in the previous month.

Production activity loans grew by 9.8% in September, up from 9.4% in August.

The increase was bolstered by key industries including real estate activities, which surged 14.2%; wholesale and retail trade and vehicle repair at 12.0%; manufacturing at 10.6%; and electricity, gas, steam, and air-conditioning supply at 7.5%.

Consumer loans also remained robust, posting a 23.4% increase in September, slightly down from 23.7% in August. This growth was mainly driven by continued expansion in credit card lending.