Banks' exposure in real estate down to 4-year low

The exposure of Philippine banks and trust entities to the volatile property segment eased slightly to 19.92 percent of total loans as of end-June from 20.31 percent as of end-March, data from the Bangko Sentral ng Pilipinas (BSP) showed.

- – Keisha Ta-asan

The ratio was also down from the 20.8 percent seen in the same period last year. It marked the lowest in more than four years or since the 19.84 percent in December 2019.

Based on central bank data, investments and loans extended to the property sector inched up by 3.6 percent to P3.16 trillion in end-June from P3.05 trillion in the same period a year ago.

Broken down, lending went up by 7.7 percent to P2.79 trillion from P2.59 trillion a year ago. Commercial real estate loans rose by 6.1 percent to P1.74 trillion, while residential real estate loans grew by 8.9 percent to P1.04 trillion.