Bank lending grew by 13.9 percent in October, the Bangko Sentral ng Pilipinas (BSP) reported over the weekend, picking up from 12.6 percent a month earlier as loans for production activities and household consumption continued to expand.
Including reverse repurchase placements (RRPs) with the central bank, lending growth on a year-on-year basis also accelerated to 13.6 percent compared to the revised 12.4 percent recorded the previous month.
Month-on-month and seasonally-adjusted, commercial bank lending increased by 2.2 percent for loans net of RRPs and by 2 percent for loans inclusive of RRPs.
Lending for production activities, which comprised over 80 percent of the aggregate loan portfolio, grew by 14.4 percent from September’s revised 13.2 percent.
This was driven primarily by real estate activities, which accounted for 22.4 percent; followed by electricity, gas, steam, and air-conditioning supplies, 28.4 percent; wholesale and retail trade, and repair of motor vehicles and motorcycles, 13.7 percent; financial insurance activities, 14.7 percent; and construction, 26.9 percent.
“Bank lending to other sectors, likewise, expanded during the month except for professional, scientific and technical activities, declined by 9.6 percent,” the central bank said.
Loans for household consumption, meanwhile, grew by 12.8 percent, up from the revised 12.7 percent in September, “due to the increase of salary-based general purpose consumption loans as well as sustained growth in credit card loans and auto loans.”
“Going forward, the BSP will continue to ensure that domestic credit and liquidity conditions will keep pace with overall economic growth while remaining consistent with its price and financial stability objectives,” it said.