Outstanding loans from universal and commercial banks (U/KBs) continued their upward trend in May, driven by sustained demand from both businesses and individual consumers. Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) indicates a robust year-on-year growth of 11.3 percent in May, slightly up from 11.2 percent in April.
On a month-on-month seasonally adjusted basis, outstanding loans saw a 0.9 percent increase in May, reflecting ongoing expansion in credit activity.
Loans extended to Philippine residents expanded by 11.8 percent year-on-year in May, a marginal decrease from 11.9 percent in April. Conversely, outstanding loans to non-residents continued their decline, falling by 6.6 percent in May, following a 10.0 percent decrease in the preceding month.
Lending to business activities grew by 10.2 percent in May, a slight moderation from 10.3 percent in April. This easing was attributed to a slower pace of expansion in loans to key sectors. Notable growth was observed in real estate activities (8.7 percent), wholesale and retail trade, repair of motor vehicles and motorcycles (9.8 percent), and transportation and storage (14.0 percent). However, loans to the manufacturing sector experienced a contraction of 3.0 percent.
Meanwhile, consumer loans to residents remained a significant growth driver, increasing by 23.7 percent in May, slightly down from 24.0 percent in April. This category encompasses various loan types, including those for motor vehicles, motorcycles, credit cards, and general-purpose salary loans, underscoring strong household demand for credit.
The BSP closely monitors bank loans as a critical channel for the transmission of monetary policy. Moving forward, the Bangko Sentral ng Pilipinas reaffirms its commitment to ensuring that domestic liquidity and bank lending conditions remain consistent with its objectives of maintaining price and financial stability.
