Outstanding loans issued by the country’s universal and commercial banks grew at their fastest pace in 15 months in May, driven by sustained demand from businesses and households.
Loans rose 12.1% year on year in May, accelerating from 11.4% in April and marking the quickest expansion since the 12.2% growth recorded in February 2025, according to data released by the Bangko Sentral ng Pilipinas.
The total outstanding loan portfolio of big banks reached P14.99 trillion in May, up from P13.37 trillion a year earlier.
“This reflects banks’ expectations of steady loan demand from businesses and households in Q2 2026,” the BSP said, citing the results of its first-quarter 2026 Senior Loan Officers’ Survey.
Outstanding loans to businesses increased 11.7% to P12.67 trillion and accounted for 84.5% of banks’ total lending portfolio.
The largest shares of business lending went to electricity, gas, steam and air-conditioning supply at 32.9%, transportation and storage at 21.4%, wholesale and retail trade and repair of motor vehicles and motorcycles at 10.1%, real estate activities at 7.3%, and manufacturing at 6.4%.
Consumer loans to residents rose 19.0% to P2.02 trillion, representing 13.5% of total bank lending.
“This is slightly slower than the previous month’s 19.6-percent growth, reflecting softer expansion in credit card and motor vehicle loans,” the BSP said.
Credit card receivables increased 26.3% to P1.27 trillion, while motor vehicle loans rose 10.2% to P540.9 billion.
The BSP said it continues to monitor lending activity closely as bank credit remains a key channel for monetary policy transmission.
“Looking ahead, the BSP will continue to ensure that bank lending conditions remain aligned with its price and financial stability objectives,” the central bank said.
