Philippine bank lending growth slows in January

Bank lending by the Philippines’ universal and commercial banks grew at a slower 9.3 percent year on year in January 2026, easing from the revised 9.6 percent expansion in December 2025, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

After seasonal adjustment, outstanding universal and commercial bank loans rose 1.0 percent month on month in January.

Outstanding loans to residents increased 9.9 percent in January, slightly slower than the revised 10.1 percent growth in December.

Outstanding loans to nonresidents, meanwhile, fell 10.4 percent in January after an 8.0 percent revised decline in the previous month.

Loans used to fund business activities expanded 8.2 percent in January, showing that credit demand from firms remained firm even as overall lending growth eased.

Among the key industries, lending grew 9.1 percent for real estate activities, 20.3 percent for electricity, gas, steam, and air-conditioning supply, 8.3 percent for wholesale and retail trade, repair of motor vehicles and motorcycles, 5.5 percent for financial and insurance activities, 4.9 percent for information and communication, and 19.1 percent for transportation and storage.

Consumer loans to residents, which include credit card, motor vehicle, and general-purpose salary loans, rose 21.3 percent in January, slightly slower than the revised 21.5 percent increase in December.

The BSP said the banking data matter because bank lending remains a key transmission channel of monetary policy, helping show how changes in interest rates and liquidity conditions are passed on to businesses and households.

In level terms, total loans outstanding net of reverse repurchase agreements reached about PHP 14.24 trillion in January, including roughly PHP 13.94 trillion in resident loans and PHP 296.39 billion in nonresident loans.

The central bank said the figures exclude reverse repurchase agreements of universal and commercial banks with the BSP.

The BSP defines residents to include Philippine citizens living in the country, noncitizens permanently residing in the Philippines, Philippine-organized corporations and juridical persons, and local branches, subsidiaries, affiliates, extension offices, and other operating units of foreign corporations, except offshore banking units.

Outstanding loans to nonresidents include loans extended by universal and commercial banks’ foreign currency deposit units.

Looking ahead, the BSP said it will continue to ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability mandates.