FCDU loans down 2.7% as of end-Sept

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LOANS extended by banks’ foreign currency deposit units (FCDUs) fell by 2.7 percent in the third quarter of 2015 from a year earlier, Bangko Sentral ng Pilipinas data showed, with their proportion to deposits also dropping.

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FCDU loans reached $11.76 billion, down from the $12.08 billion recorded in 2014.

On a quarterly basis, FCDU loans also dropped 3.1 percent or by $375 million from the $12.13 billion recorded at the end of June as repayments exceeded disbursements.

Except for loans to producers/manufacturers that slightly increased by 0.6 percent, FCDU loans granted during the period to all other types of debtors declined compared to the previous quarter: exporters by 3.0 percent, public utilities by 2.3 percent, oil companies by 75.7 percent and other borrowers/sectors (including non-residents) by 2.2 percent.

“Some borrowers may have shifted to domestic financing as peso loans showed a growth of 5 percent from P4.3 trillion to P4.6 trillion for the same period,” the central bank said.

The loans-to-deposit ratio decreased to 35.4 percent as of end-September from 39.6 percent a year earlier. Compared to the previous quarter, the ratio eased from 38.1 percent as a consequence of the higher rate of contraction of loans (3.1 percent) and increase in deposits (4.4 percent).

Deposit liabilities stood at $31.8 billion, up from $30.51 billion last year.

The central bank said the loans consisted mostly of medium- to long-term loans—or those payable over a term of more than one year—representing 70.5 percent of total FCDU loans.

Short-term loans, or those with original maturities of up to one year, accounted for the balance.

Resident borrowers represented 70.8 percent or $8.33 billion of the total FCDU loans extended during the quarter, while the remaining 29.3 percent or $3.43 billion went to non-resident borrowers.

Loans to resident borrowers benefited public utility firms; producers/manufacturers, including oil companies; merchandise and service exporters; management/holding and stock brokerages; and towing, tanker trucking, forwarding, personal and other individuals, the central bank said.

Gross disbursements during the period increased by 20.9 percent to $15.8 billion from the previous quarter’s $13 billion.

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