The Bangko Sentral ng Pilipinas (BSP) reported that the growth in outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, moderated to 11.2 percent year-on-year in April 2025, easing from 11.8 percent in March. On a month-on-month seasonally-adjusted basis, bank lending expanded by 0.3 percent.
Outstanding loans to residents, net of RRPs, grew by 11.9 percent in April, down from 12.4 percent in the previous month. Meanwhile, loans to non-residents declined further by 10.0 percent, following a 5.6-percent drop in March.
Lending for production activities increased by 10.3 percent year-on-year in April, slowing from 10.8 percent in March. The deceleration was mainly due to reduced lending growth in several key sectors, including:
- Real estate activities (8.9 percent)
- Wholesale and retail trade; repair of motor vehicles and motorcycles (9.9 percent)
- Manufacturing (0.6 percent)
- Financial and insurance activities (7.5 percent)
- Information and communication (7.7 percent)
- Transportation and storage (14.9 percent)
Consumer loans to residents, on the other hand, continued to post robust growth, rising by 24.0 percent in April from 23.9 percent in March. This was largely driven by increased credit card borrowing.
As the BSP continues to monitor credit conditions, it reaffirms its commitment to maintaining price and financial stability. “Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its mandates,” the central bank said in a statement.
