Bank loans increase by 8.8%
Preliminary data shows that outstanding universal and commercial bank loans, net of reverse repurchase agreements (RRPs) with the BSP, grew at a faster pace of 8.8% year-on-year in February, compared to 8.4% in January.
The BSP said it continues “to see the possibility of preserving the momentum of the economic recovery amid heightened uncertainty, even as indications of a sustained improvement in credit activity allow the BSP to unwind gradually its interventions related to the pandemic”.
On a seasonally adjusted monthly basis, outstanding universal and commercial bank loans, net of RRPs, increased by 0.4%. Credit activity continues to gain momentum as the easing of COVID-19 related restrictions drives improved market mobility and demand.
Outstanding loans to residents, net of RRP, increased by 8.8% in February after 8.6% (revised) the previous month with the acceleration of loans to production activities.
Outstanding loans to production activities increased by 9.7% in February after 9.5% in January driven by the increase in loans to real estate activities (+16.0%); wholesale and retail trade, automobile and motorcycle repair (5.7%); information and communication (33.3%); financial and insurance activities (13.2%); manufacturing (11.0%) and the supply of electricity, gas, steam and air conditioning (0.4%).
Consumer loans to residents edged up 0.9% in February after falling 0.4% in January, mainly due to the year-on-year rise in credit card loans.
Outstanding loans to non-residents also increased by 7.3% in February after 3.2% in January.