August loan growth slowest in 9 months

Loan growth in the Philippines eased to its slowest pace in nine months as lending to businesses moderated in August despite resilient consumer demand, according to the Bangko Sentral ng Pilipinas (BSP).

- By KEISHA TA-ASAN

Bank loans to businesses grew by a slower 11.2 percent, to P13.62 trillion in August.

Preliminary figures showed that loans disbursed by universal and commercial banks, net of their reverse repurchase placements with the BSP, expanded by 11.2 percent year-on-year in August, slower than the 11.8 percent increase in July.

The August reading marked the weakest growth in nine months or since the 11.1 percent pace in November 2024. On a seasonally adjusted month-on-month basis, outstanding loans rose by just 0.4 percent.

Bank loans reached P13.62 trillion in August, higher by P1.37 trillion compared to the P12.25 trillion recorded in the same month last year.