Total outstanding loans of commercial banks, net of banks' reverse repurchase (RRP) placements with the BSP, continued to expand in April by 14.2 percent, broadly similar to the previous month's expansion of 14.1 percent. Meanwhile, bank lending including RRPs grew at a faster rate of 18.0 percent from an expansion of 16.8 percent in March, to reach P2.7 trillion. On a month-on-month seasonally-adjusted basis, commercial banks' lending in April rose by 1.7 percent for loans net of RRPs and by 2.7 percent for loans inclusive of RRPs.
The growth in loans for production activities-which comprised about four-fifths of commercial banks' total loan portfolio-was broadly steady at 15.7 percent in April from 15.6 percent a month earlier. Meanwhile, the growth in consumer loans (which include credit card receivables and auto loans) was unchanged at 12.9 percent.
The expansion of production loans was driven by lending to electricity, gas and water (which grew by 47.3 percent); manufacturing (19.5 percent); real estate, renting and business services (17.2 percent); agriculture, hunting and forestry (11.0 percent); and wholesale and retail trade (13.8 percent). Meanwhile, the growth in lending to construction activities decelerated to 0.1 percent from 8.5 percent in the previous month. Contractions were posted in lending to four production sectors, namely, health and social work (-9.0 percent); fishing (-24.1 percent); education (-22.9 percent); and public administration and defense (-5.5 percent).
The steady growth in bank lending reflects the prevailing pace of domestic economic activity. Going forward, the BSP will continue to provide the appropriate credit conditions to support its primary mandates of maintaining monetary and financial stability.