The double-digit growth of outstanding loans of commercial banks including reverse repurchase agreements (RRPs) was sustained at 13.4 percent in April, albeit a deceleration from the previous month’s growth of 18.9 percent. Net of RRP placements with the BSP, bank lending grew at a faster pace of 19.0 percent in April from 17.8 percent in the previous month.
Preliminary data indicated that loans for production activities continued to lead the credit expansion in April, growing at a faster rate of 18.1 percent from 16.8 percent in March. Growth in consumption loans also accelerated to 13.5 percent this month from 9.0 percent in the previous month, supported by the strong growth in auto loans and the sustained increase in credit card lending.
Loans extended to the following sectors, which comprised nearly half of total loans, contributed significantly to lending growth: agriculture, hunting, and forestry (which grew by 33.6 percent); real estate, renting and business services (by 36.8 percent); transportation, storage & communication (by 68.2 percent); electricity, gas and water (by 34.6 percent); and other community, social and personal services (by 37.3 percent). Loans to the manufacturing sector and financial intermediation activities, which accounted for more than a quarter of total loans, likewise contributed to lending growth, although marginally, at less than one percent each. Meanwhile, bank lending to the wholesale and retail trade; public administration and defense; education; construction; and mining & quarrying sectors registered contractions during the month.
Noting these developments, BSP Governor Amando M. Tetangco, Jr. affirmed the BSP’s commitment to help provide the appropriate macroeconomic conditions for continued credit expansion, while fulfilling its primary mandate of maintaining price stability.