Bank lending grows 12.8% YOY in Jan, driven by production and consumer loans

Bank lending grew by 12.8 percent year-on-year in January, reaching a level not seen since December 2022, according to data released by the Bangko Sentral ng Pilipinas (BSP).

Outstanding loans from universal and commercial banks amounted to PHP13.019 trillion, up from PHP11.54 trillion in January of last year.

Loans for production activities increased by 11.8 percent, driven by key industries such as real estate, electricity supply, wholesale trade, transportation, and manufacturing.

Consumer loans also rose significantly, increasing by 24.4 percent due to higher credit card and motor vehicle loan disbursements.

Domestic liquidity grew by 6.8 percent in January, though this is slower than the 7.7 percent expansion seen in December.

The BSP highlighted that claims on the private sector expanded by 13.1 percent, reflecting continued growth in lending to non-financial private corporations and households.