Growth in bank loans eased in December

BangkoSentral ng Pilipinas (BSP) said on Wednesday bank lending growth slowed down in December 2017.

The central bank said in a statement, outstanding loans of Philippine commercial banks expanded by 19% in

December last year, slower than the 19.3% in the previous month.

Growth in total loans also grew at a slower pace to 18.1% in December from 18.4% in November including banks’ cash placements with the BSP.

“Growth in bank loans continued to be driven by lending to key production sectors such as real estate activities; electricity, gas, steam and air-conditioning supply; wholesale and retail trade, repair of motor vehicle and motorcycles; manufacturing; and financial and insurance activities,” the BSP said.

Loans for production activities, which accounted for 88.9% of banks’ aggregate loan portfolios, grew by 18.5% in December from month-ago level.

The growth in production loans was driven by real estate activities (19.3%); electricity, gas, steam and air-conditioning supply (25.4%); wholesale and retail trade, repair of motor vehicles and motorcycles (20.1%); manufacturing (11.7%); and financial and insurance activities (16.8%).

Bank lending to other sectors also rose except in agriculture, forestry and fishing (-13.7%), and administrative and support service activities (-30.4%).

Growth in household consumption decelerated to 17.2% in December from November’s 20.6%.

The BSP said, “the slower increase in motor vehicles and salary-based offset the faster expansion in credit card loans and the growth in other types of household loans.”