Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. announced today that as of end-March 2015, outstanding FCDU loans stood at US$12.5 billion, up by US$282 million (2.3 percent) from the end-December 2014 level of US$12.2 billion, as disbursements exceeded repayments. The expansion of the FCDU loan portfolio may be attributed to the prevailing low interest rate environment, stable financial system, and positive business sentiment arising from strong macroeconomic fundamentals leading to the lower than expected but still positive GDP growth of 5.2 percent for the first quarter of 2015.
Outstanding loans to resident borrowers represented 71.3 percent (US$8.9 billion) of total, with the following sectors/industries as major beneficiaries: public utility firms (US$2.0 billion or 16.3 percent), producers/manufacturers, including oil companies (US$1.1 billion or 8.5 percent) and merchandise and service exporters (US$2.9 billion or 22.9 percent). The US$2.9 billion balance of outstanding loans (or 23.6 percent) went to other residents with the following as major beneficiaries: power generation company (3.5 percent), investment firm (2.6 percent), holding company (1.7 percent), and a realty developer company (1.1 percent). The balance of the loan portfolio went to non-residents.
Gross disbursements during the reference quarter increased by 2.0 percent to US$14.3 billion from the previous quarter’s US$14.0 billion. The bulk of loan releases (US$13.9 billion or 97.1 percent) had ST maturities, and were largely for working capital and other ST funding requirements (US$11.7 billion or 84.4 percent of total ST disbursements).
The maturity profile of outstanding FCDU loans was as follows: medium- to long-term loans [or those payable over a term of more than one (1) year] represented 65.4 percent of total, and funded various projects. Short-term (ST) accounts [or those with original maturities of up to one (1) year] comprised the 34.6 percent balance of the loan portfolio.
FCDU deposit liabilities also increased to US$32.5 billion or by US$706 million (2.2 percent) from US$31.8 billion the previous quarter. Resident accounts continued to comprise the bulk of deposits at 97.0 percent. Similarly, the loans-to-deposit ratio slightly increased from 38.3 percent to 38.4 percent in first quarter of 2015 as a consequence of the lower expansion in deposits (2.2 percent) vis-à-vis the higher growth in loans (2.3 percent).