By Lee C. Chipongian
Big banks’ outstanding loans grew at a slower rate in April, up by 12.7 percent year-on-year compared to the previous month’s 12.9 percent as production loans also slowed down.
Based on the latest data from Bangko Sentral ng Pilipinas (BSP), the outstanding loans of the 46 universal and commercial banks minus reverse repurchase (RRP) placements with the BSP totaled P8.4 trillion in April.
With RRPs, the big banks’ lending was up by 12.8 percent year-on-year from 11.5 percent in March, or about P8.63 trillion.
The BSP said these loans net of RRPs and with RRPs dropped by 1.1 percent and 0.4 percent, respectively, on a month-on-month and seasonally-adjusted basis.
The central bank remains confident that credit and liquidity growth are consistent with each other’s pace of expansion.
The BSP said that it will “continue to ensure that the expansion in domestic credit and liquidity remains consistent with promoting non-inflationary and sustainable growth.”
Bulk of large lenders’ loans or 88.2 percent is for production activities. These loans increased by 12.4 percent year-on-year in April, slower compared to March’s 12.8 percent.
Of production loans, the financial and insurance activities’ sector availed of P804.76 billion which was 28.8 percent higher year-on-year. Other sectors such as real estate activities and wholesale/retail trade/repair of motor vehicles and motorcycles grew by 13.9 percent and 11.9 percent to P1.43 trillion and P1.14 trillion, respectively.
Lending to construction and manufacturing sectors, as well as electricity/gas/steam/airconditioning supply went up by 48.9 percent, 10.7 percent and 11.2 percent, respectively. In peso value, lending to these sectors totaled P328.37 billion, P1.098 trillion and P934.55 billion.
The BSP said loans for household consumption expanded by 15 percent year-on-year to P689.98 billion.
“Faster growth in credit card loans and motor vehicle loans was slightly offset by the slower expansion in salary-based general purpose consumption loans and other types of household loans during the month,” noted the BSP.