Bank lending expansion picks up to 11.3% — BSP

BANK LENDING GROWTH picked up anew in May, driven by loans to businesses and consumers, the Bangko Sentral ng Pilipinas (BSP) said.

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Preliminary BSP data released late on Monday showed that outstanding loans of universal and commercial banks increased by 11.3% year on year to P13.37 trillion as of May from P12.02 trillion in the same period in 2024.

This was faster than the 11.2% expansion in April. This comes as lending growth has slowed month on month since February.

"After adjusting for seasonal fluctuations, the outstanding loans increased by 0.9% in May compared with the previous month," the BSP added.

Outstanding loans to residents rose by 11.8% year on year to P13.05 trillion in May, a tad slower than the 11.9% growth posted in the previous month.

Meanwhile, loans to nonresidents declined by 6.6% year on year to P323.83 billion that month following a 10% drop posted in April.

BSP data showed that outstanding loans to residents to fund business activities expanded by 10.2% to P11.35 trillion in May, easing from the 10.3% growth a month prior.

"Loan growth eased slightly due to the slower expansion in lending to key industries such as: real estate activities (8.7%); wholesale and retail trade, and repair of motor vehicles and motorcycles (9.8%); and transportation and storage (14%)," the central bank said.