LOANS extended by commercial banks grew by a slower 14.8 percent year-on-year to P5.15 trillion in March, according to the Bangko Sentral ng Pilipinas.
In March, the growth in total loans outstanding to both residents and non-residents, net of reverse repurchase (RRP) placements with the BSP, slowed from 16.9 percent in February.
Bank lending, inclusive of RRPs rose 13.5 percent to P5.41 trillion, also slower than the previous month’s 15.7-percent growth.
“On a month-on-month seasonally adjusted basis, commercial bank lending increased by 0.3 percent for loans net of RRPs and by 0.1 percent for loans inclusive of RRPs,” the BSP said.
Also in March, loans for production activities composed more than four-fifths of banks’ total loan portfolio. Production loans grew 15 percent to P4.61 trillion, slower than the 17.4-percent climb a month ago.
The BSP said production loan growth in March was boosted by higher lending to the following sectors: electricity, gas, steam and airconditioning supply (up 31.8 percent); information and communication (up 28 percent); real estate activities (up 20.2 percent); wholesale and retail trade; repair of motor vehicles and motorcycles (up 13.6 percent), and financial and insurance (up 10.6 percent).
“Bank lending to other sectors likewise expanded during the month, except for professional, scientific and technical activities which declined by 9.6 percent,” the BSP noted.
Loans for household consumption, meanwhile, jumped by a slightly faster 15.9 percent to P396.9 billion in March compared with the 15.7-percent increase during the previous month on the back of growth across all consumer loans types such as credit card loans, motor vehicle loans as well as salary-based general purpose consumption loans, the BSP said.