Philippine banks see steady increase in lending activities with 10% YoY growth in February 2023

Philippine banks are seeing a steady increase in lending activities as outstanding loans of universal and commercial banks (U/KBs) grew by 10.0 percent year-on-year in February 2023.

This is a positive sign for the economy as it indicates that there is a sustained credit and ample liquidity that will continue to support robust domestic demand.

The growth in credit to key sectors such as financial and insurance activities, wholesale and retail trade, repair of motor vehicles and motorcycles, electricity, gas, steam, and airconditioning supply, information and communication, manufacturing, and real estate activities are also contributing to this growth.

Meanwhile, consumer loans to residents rose by 21.2 percent in February from 20.3 percent in the previous month with the sustained growth in credit card and salary-based general purpose consumption loans.

Outstanding loans to non-residents rose by 14.8 percent in February following a 16.8-percent growth rate in the previous month.