Philippine household lending grew 26.2% in September

This was due to growth of motors, credit card, and salary-based consumption loans.

Loans for Philippines’ household sector grew 26.2% in September from 25.4% in August, due to faster growth in motor vehicle, credit card, and salary-based general purpose consumption loans during the month, according to the Bangko Sentral ng Pilipinas (BSP).

Overall outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, remained steady with a 10.5% growth in September, similar to August. On a monthly, seasonally-adjusted basis, commercial bank loans net of RRPs edged up by 0.8%.

Loans for production activities—which comprised 87.4% of banks’ aggregate loan portfolio, net of RRPs—remained unchanged in September with aof 9% expansion. This was driven primarily by lending for real estate activities (18.3%); financial and insurance activities (17.6%); construction (36.2%); electricity, gas, steam and air conditioning supply (9.2%); and wholesale and retail trade, repair of motor vehicles and motorcycles (4.8%).

Bank lending to other sectors also increased during the month, except those in professional, scientific and technical activities, which plummeted 35.7%) and other community, social and personal activities, which eclipsed -39.8%.