Bank lending growth in PH slightly slowed to 12.2% in Feb

The Bangko Sentral ng Pilipinas reports that bank lending in the country continued to grow in February despite external headwinds.

MANILA, Philippines – Bank lending continued to grow in February, albeit at a slower pace than in January, driven by a steady increase in outstanding loans to consumers and businesses.

Both production and consumer lending maintained a similar pace of expansion from January despite external headwinds.

Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed that outstanding loans of universal and commercial banks, excluding their lending with each other, grew by 12.2 percent year-on-year in February 2025 to P13.027 trillion from P11.611 trillion in February 2024.

READ: Bank lending posted best growth in over 2 years in January

This marked a slight deceleration from the 12.8-percent year-on-year expansion recorded in January 2025, which was the fastest pace of expansion in over two years.

On a month-on-month seasonally adjusted basis, outstanding loans of the country’s big banks, net of their lending to each other, increased by 0.6 percent, reflecting continued lending activity despite economic challenges such as uncertainties over the impact of pending US tariffs on the global economy.

Outstanding loans to residents, net of reverse repurchase placements with the BSP, grew by 12.6 percent in February, slightly slower than the 13.3 percent expansion recorded in January.

In contrast, outstanding loans to nonresidents declined by 3.2 percent in February, following a 3.5-percent drop in the previous month, reflecting continued weakness in foreign borrowing.

Production loans

Loans for production activities expanded by 11.2 percent in February, slightly lower than the 11.8 percent growth recorded in January.

This increase was primarily driven by higher lending to key sectors, with electricity, gas, steam, and air-conditioning supply rising by 21.5 percent.

Wholesale and retail trade, including the repair of motor vehicles and motorcycles, saw a 13.7-percent increase, while lending to the manufacturing sector grew by 0.9 percent.

The construction industry recorded a 12.7-percent rise, and transportation and storage loans expanded by 20.6 percent.

Meanwhile, consumer loans to residents grew by 24.1 percent in February, marginally easing from 24.4 percent in January.

The growth was supported by increased demand for credit cards and motor vehicle loans.

Looking ahead, the BSP said it would ensure that domestic liquidity and bank lending conditions will be in line with its price and financial stability mandates. INQ