Lending growth slows to five-month low in April

Bank lending increased to its slowest pace in five months in April as the growth in loans to key industries eased, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

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Outstanding loans of universal and commercial banks grew by 11.12% year on year to P13.25 trillion in April from P11.91 trillion in the same period in 2024.

This was the slowest growth in bank lending in five months or since the 11.1% posted in November 2024.

It also eased from the 11.8% year-on-year increase seen in March.

BSP data showed outstanding loans to residents rose by 11.9% year on year to P12.93 trillion in April, slower than the 12.4% growth posted in the previous month.

Meanwhile, loans to nonresidents declined by 10% year on year to P318.37 billion during the month following the 5.6% drop posted in March.

Outstanding loans to residents for production activities expanded by 10.3% to P11.26 trillion in April, slower than the 10.8% growth a month prior.

The BSP said this was due to the slower expansion in lending to real estate activities (8.9%); wholesale and retail trade, repair of motor vehicles and motorcycles (9.9%); manufacturing (0.6%); financial and insurance activities (7.5%); information and communication (7.7%); and transportation and storage (14.9%)