Banks granted more loans in April as lending accelerated by 9.6 percent from 9.4 percent in March a year ago, the Bangko Sentral ng Pilipinas said Friday.

The BSP said outstanding loans from universal and commercial banks rose by 9.6 percent from 9.5 percent.

Specifically, loans for production activities grew by 7.8 percent from 7.7 percent.

Top borrowers included firms engaged in transportation and storage with a 21.8 percent share of the total loans, construction (15.1 percent), and real estate (11 percent).

Repair, utility costs

The others were those related to electricity, gas, steam and air conditioning supply (9.2 percent) wholesale and retail trade, and repair of motor vehicles and motorcycles (7.6 percent).

However, loans to individual residents slightly decreased to 25.3 percent from 25.4 percent. The BSP said they continued to borrow funds through credit cards, auto loans and salary-based loans for general purposes.

Meanwhile, outstanding loans to non-residents increased by 10.8 percent from 9.1 percent.

First Metro Investment Corp. (FMIC) expects sustained robust spending within the year as gross domestic product rises to 5.9 percent in the second quarter, slightly up from 5.7 percent in the previous quarter.

“For the rest of the year, elevated employment levels, expected ramping up of government spending, and inflation maxing out at slightly below 4 percent up to July should put domestic demand back into the fast lane,” it said.

FMIC added borrowing costs might become cheaper by August as it expects the BSP to cut its 6.5 percent policy rate by 25 basis points during the period.