Outstanding loans in the Philippines rose 11.1% year-on-year in November 2024, outpacing October’s growth of 10.6%, signaling stronger demand for credit in both business and consumer sectors, according to the latest data from the Bangko Sentral ng Pilipinas (BSP).
Total loans hit P12.675 trillion in November, excluding reverse repurchase (RRP) placements with the BSP. Including RRPs, which are used as a liquidity tool for banks, the total loan value reached P12.94 trillion.
RRPs involve the BSP selling government securities to financial institutions with a buyback agreement.
Domestic liquidity, or M3, expanded by 7.7% year-on-year to P18.066 trillion in November, a notable increase from October’s 5.4%.
On a seasonally adjusted, month-on-month basis, M3 grew 1.9%. The BSP also reported a 1% rise in big banks’ outstanding loans, excluding RRPs, compared to October.
The central bank continues to align monetary policy with its dual goals of supporting economic growth and maintaining financial stability. In 2024, the BSP lowered interest rates by 75 basis points in response to easing inflationary pressures.
Loans for production activities saw a notable 9.8% growth, amounting to P10.813 trillion in November, up from a 9.1% rise in October. The wholesale and retail trade sector led this surge, with a 9.1% increase to P1.444 trillion, while loans to the electricity, gas, steam, and air-conditioning supply sector rose 9.6% to P1.394 trillion.
Financial and insurance sectors also posted gains, up 4.4% to P1.042 trillion.
Consumer loans saw a slower, yet still strong, growth of 23.3%, reaching P1.539 trillion. This was down slightly from the 24% increase in October. Credit card loans surged 26.5% to P894.612 billion, and motor vehicle loans expanded by 19.6% to P450.687 billion.
Meanwhile, other loan categories, including salary-based and general consumption loans, saw increases of 15% and 29.8%, respectively.
