Outstanding bank loans rose for the 11th straight month in June, reflecting a solid rebound in commercial and retail borrowings as the economy continues to open up and recover.
Outstanding loans of universal and commercial banks expanded at a faster pace of 12.0 percent year-on-year last month, from 10.7 percent in May, data from the Bangko Sentral ng Pilipinas (BSP) showed.
“Outstanding loans to residents, net of RRPs (reverse repurchase) increased by 11.9 percent in June from 10.6 percent in the previous month,” data shows.
“Outstanding loans for production activities grew by 12.0 percent in June from 10.8 percent in May due mainly to the rise in credit for real estate activities (18.1 percent); manufacturing (17.5 percent); information and communication (29.7 percent); and wholesale and retail trade, repair of motor vehicles and motorcycles (8.0 percent),” the central bank added.
June’s figure is a net of RRP placements with the BSP, relative to the 10.7-percent uptick in May.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, expanded by 2.3 percent.
The data also showed that consumer loan growth accelerated to 10.6 percent in June from 8.5 percent in May, driven by the year-on-year rise in credit card loans and salary-based general purpose consumption loans.
At the same time, outstanding loans to non-residents rose faster rate of 16.3 percent in June than 12.5 percent in the previous month.
The sustained credit growth will support the momentum of economic recovery amid the ongoing withdrawal of monetary accommodation.
“Going forward, the BSP will continue to ensure that liquidity and credit dynamics remain consistent with the BSP’s price and financial stability objectives,” the central bank added.
Chief economist Michael Enriquez of Sunlife Investment Management and Trust Co. told Daily Tribune, “bank loans have been increasingly coming from both commercial and retail as our economy continues to open up and recover. Business sentiment and confidence have been increasing. Also, some are pre-finding in anticipation of higher interest rates.”