Philippine bank lending accelerated in July as businesses stepped up borrowing, offsetting softer demand from consumers.
Loans by the country’s biggest banks grew 10.4% from a year earlier, quickening from 9.8% in June, according to data from the Bangko Sentral ng Pilipinas. Outstanding credit reached ₱14.98 trillion, compared with ₱13.57 trillion a year earlier.
The pickup was driven by businesses, with loans for production activities expanding 9.8%, faster than June’s 9.2% pace. Corporate credit totaled ₱12.62 trillion, accounting for more than four-fifths of outstanding loans.
Utilities were among the strongest borrowers. Loans to electricity, gas, steam and air-conditioning suppliers jumped 24.4% to ₱2.11 trillion, while lending to the real estate sector increased 5.5% to ₱2.89 trillion.
Household borrowing lost some momentum. Consumer loan growth eased to 17.1% from 17.8% in June as growth in credit-card and auto loans slowed. The central bank pointed to weaker consumer confidence as one factor behind the moderation.
Consumer loans totaled ₱2.06 trillion, including ₱1.30 trillion in credit-card balances, ₱542.85 billion in auto loans and ₱179.66 billion in salary-based general-purpose credit.
Loans to Philippine residents increased 10.8% to ₱14.69 trillion, while lending to non-residents contracted 6.8% to ₱294.33 billion.
The BSP said it is monitoring credit growth because bank lending is a key channel through which monetary policy feeds into the economy. It said financial conditions would remain aligned with its price and financial stability objectives.
