Universal, commercial (U/KBs) and thrift banks (TBs) reported Php 1.061 trillion in consumer loans (CLs) at end-December 2015.
The figure rose by 17.5 percent from the Php 902.6 billion posted a year earlier and sustained the year-on-year growth in CLs that started in 2008. The year-on-year increase in CLs last December was driven by motor vehicle and residential real estate loans.
Consumer lending by banks continued to rise as the domestic economy sustained its growth amid the steady increase in Overseas Filipino remittances, a growing Business Process Outsourcing industry, the solid performance of the services sector, and heightened consumer spending and investing.
Moreover, Bangko Sentral ng Pilipinas (BSP) data revealed that the non-performing CLs of U/KBs and TBs represented 4.5 percent of their total CLs at end-December last year, a slight decrease from the 4.8 percent posted a year earlier.
U/KBs and TBs also provisioned for 58.7 percent of their non-performing CLs as buffer for potential credit losses during said period.
As a percentage of total loan portfolio, the 16.6 percent consumer credit exposure of Philippine banks remained the lowest among the ASEAN 5 economies. At end-December 2015, the CL exposure in Malaysia was at 56.8 percent; Thailand, 28.8 percent; Indonesia, 28.0 percent; and Singapore, 26.6 percent.
The BSP monitors the level and quality of consumer and other bank loans to ensure banks’ adherence to high credit standards. This is in line with the BSP’s supervisory efforts to promote sound credit risk management and financial stability.
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