Bank lending grows by 14.2%
The total outstanding loans extended by commercial banks in April grew by 14.2 percent year on-year to P2.42 trillion amid expansion of lending to production activities, mainly to utilities and manufacturing firms.
The portfolio grew from P2.12 trillion in the same month last year and reached the highest since a series of month-on-month increases that started in September 2010.
Also, data from the Bangko Sentral ng Pilipinas showed that outstanding bank loans grew at the fastest rate since going back to double-digit levels in January.
Loans extended to firms engaged in production activities—which totaled at P2.2 trillion, or four-fifths of total—drove the growth in bank lending, registering a 15.7-percent increase in April from 15.6 percent in March.
In terms of growth, top contributors included lending to firms involved in electricity, gas and water, which grew by 47.3 percent to P215.4 billion; manufacturing (19.5 percent to P406.2 billion); real estate, renting and business services (17.2 percent to P385.9 billion); agriculture, hunting and forestry (11 percent to P344.4 billion); and wholesale and retail trade (13.8 percent to P269.9 billion).
There was a contraction in lending for health and social work (down by 9 percent to P10.4 billion); fishing (24.1 percent to P3.6 billion); education (22.9 percent to P9.2 billion); and public administration and defense (5.5 percent to P67 billion).
Loans for household consumption—including credit card and auto loans, which totaled P199.4 billion—remained at the March level of 12.9 percent.
The growth of credit-card receivables registered at 7.6 percent to P120.6 billion from 8 percent in March.
Auto loans also grew slower at 27.3 percent, totaling P62.2 billion, from 27.9 percent the previous month.
