Sept. bank loans rise steadily — BSP

The outstanding loans of universal and commercial banks, net of reverse repurchase placements with the Bangko Sentral ng Pilipinas expanded by 13.4 percent year-on-year in September, or faster than the 12.2-percent increase in August, data showed.

BSP data indicated that on a month-on-month basis, outstanding universal and commercial bank loans, net of RRPs, increased by 1.7 percent.

"Outstanding loans to residents, net of RRPs, rose by 13.0 percent in September following an expansion of 12.1 percent in August," the figures showed.

Moreover, outstanding loans for production activities went up by 12.3 percent in September from an 11.5-percent expansion in the previous month, because of the rise in lending to key sectors such as real estate activities (16.3 percent); manufacturing (16.2 percent); information and communication (25.5 percent); and wholesale and retail trade, repair of motor vehicles and motorcycles (10.8 percent), the central bank added.

Consumer loans 20.5% higher

Also, consumer loans to residents grew by 20.5 percent in September from 18.3 percent in August, driven mainly by the year-on-year increase in credit card loans, motor vehicle loans, and salary-based general-purpose consumption loans.

Meanwhile, the BSP said outstanding loans to non-residents also increased by 26.6 percent in September after a 16.3-percent expansion in the previous month.

The continued expansion in lending activity and ample liquidity will support the recovery of economic activity and domestic demand.

"Looking ahead, the BSP will ensure that liquidity and lending conditions remain consistent with its price and financial stability mandates," the central bank added.

For his part, Michael Ricafort, chief economist of Rizal Commercial Banking Corp. said that universal and commercial bank's profit increased faster against the previous month's 12.2 percent and 2.7 percent a year ago on lower base effects amid some lockdowns a year ago.