Philippine banks’ outstanding loans up 10.7% in August

Loans to residents grew whilst loans to non-residents slowed.

Outstanding loans held by Philippine banks rose at a faster rate of 10.7% year-on-year (YoY) in August 2024, according to central bank data.

Outstanding loans to residents grew by 10.9% during the month, compared to the 10.4% rise recorded in July, the Bangko Sentral ng Pilipinas (BSP) said in a press release published in October 2024.

Loans extended to non-residents increased at a slower rate of 1.5% in August, down from the 9.2% increase in July.

Loans for production activities rose by 9.4% in August, rising faster than the 8.8% rise in July.

Growth was driven by real estate activities (13.2%); wholesale and retail trade, repair of motor vehicles and motorcycles (10.7%); manufacturing (9.8%); transportation and storage (23.4%); electricity, gas, steam & airconditioning supply (7%).

Consumer loans to residents increased at a slower rate of 23.7% in August from 24.3% in July, driven by credit card lending.

The BSP said that it will continue to ensure that domestic liquidity and lending conditions are aligned with its price and financial stability objectives.