Bank loans sustained their double-digit growth in July 2024 despite the elevated interest rate, data from the Bangko Sentral ng Pilipinas (BSP) show.
The BSP said over the weekend outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew by 10.4 percent year-on-year in July, faster than the 10.1-percent rise in June.
Outstanding loans reached P11.80 billion in July, up from P11.74 billion in June and P10.68 billion a year ago.
The BSP said that on a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, went up by 0.8 percent.
Outstanding loans to non-residents increased by 9.2 percent in July, after rising 9.8 percent in the previous month.
Loans for production activities went up by 8.8 percent in July from 8.3 percent in June. The growth was driven by lending to major sectors such as real estate activities (up 12.0 percent); professional, scientific, and technical activities (438.3 percent); manufacturing (7.9 percent); transportation and storage (20.6 percent); and wholesale and retail trade, repair of motor vehicles and motorcycles (6.0 percent).
Meanwhile, consumer loans to residents grew at a slightly slower pace of 24.3 percent in July, compared to 25.0 percent in June due mainly to credit card lending.
Credit card receivables amounted to P810 billion in July, up from P797 billion in June.
