Bank lending up 18.6%

Commercial banks’ lending activities jumped by 18.6 percent year-on-year to P5.837 trillion in November, Bangko Sentral ng Pilipinas data showed.

Last month, the increase in total loans outstanding to residents and non-residents, net of reverse repurchase (RRP) placements with the BSP, exceeded the 17.7-percent growth in October, during which outstanding loans stood at P5.681 trillion.

Gross of RRPs, bank lending rose by 17.4 percent, faster than the previous month’s 16.2 percent, to P6.114 trillion.

“On a month-on-month seasonally-adjusted basis, commercial bank lending net of RRPs and loans inclusive of RRPs increased by 1.8 percent and 1.9 percent, respectively,” the BSP added in a statement.

In November, production loans grew 18.1 percent year-on-year to P5.195 trillion, faster than the previous month’s 17.4-percent growth.

Loans for production activities accounted for 89 percent of the banking sector’s total loan portfolio.

The BSP said production loan growth last month was sustained by higher lending to information and communication (up 48.3 percent year-on-year); electricity, gas, steam and air-conditioning supply (up 25.4 percent); real estate activities (up 19.2 percent); financial and insurance activities (up 13.3 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (up 12.6 percent), and manufacturing (up 9.2 percent). —BEN O. DE VERA