End-Sept consumer loans rise


Loans expand by nearly 4% from previous qtr, 17.36% year-on-year

Consumer lending by universal/commercial and thrift banks was up 17.36 percent as of the third quarter of last year, driven by home and motor vehicle purchases, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.

Still, domestic banks’ consumer credit exposure remained low compared to other Asean economies, the central bank noted.

Loans granted to consumers at end-September 2015 rose to P997.154 billion from P849.642 billion a year earlier. Compared to end-June, growth was 3.96 percent from P959.181 billion.

The BSP noted the quarter-on-quarter growth in consumer loans sustained the quarterly growth streak begun in 2008.

The BSP data showed an increase in residential real estate loans, by 10.12 percent to P420.948 billion from P382.246 billion year earlier, and by 2.88 percent from the end-June’s P409.175 billion.

Motor vehicle loans, meanwhile, grew by 30.46 percent to P283.558 billion from a year earlier’s P217.351, and by 9.33 percent from the P259.361 billion at end-June.

Credit card receivables rose by 7.05 percent to P167.572 billion and salary loans by 104.31 percent to P97.207 billion. On a quarter-to-quarter basis, the loan segments grew by 0.67 percent and 14.94 percent, respectively.

Other types of loans, meanwhile, contracted by 39.32 percent to P27.869 billion.

The BSP data showed non-performing consumer loans accounted for 4.65 percent of the banks’ total consumer loans, an improvement from the 4.94 percent recorded a year earlier.

Banks’ loan loss provisions were equivalent at end-September to 60.49 percent of the non-performing consumer loans, lower than the 64.35 percent a year earlier and the 61.22 percent in the previous quarter.

As a percentage of total lending, consumer lending by banks stood at 16.86 percent, higher than the 16.09 percent a year earlier and slightly higher than the 16.69 percent recorded at end-June 2015. Despite the increase, banks’ loan exposure is still lower than the rest of the top five Asean economies.

In Malaysia, banks’ consumer credit exposure stood at 54.2 percent as of end-September 2015, 28.7 percent in Thailand, in Indonesia it was at 28 percent, and 25.8 percent in Singapore.

The BSP said it was monitoring the level and quality of consumer and other bank loans to ensure banks’ adherence to credit standards.

“This is in line with the BSP’s supervisory efforts to promote sound credit risk management and financial stability,” it said.


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