Universal and commercial banks slowed lending in April by 11.2 percent from 11.8 percent in March on an annual basis due to weaker demand for business loans.

The Bangko Sentral ng Pilipinas reported the slowdown reflected the banks' negative growth in outstanding loans for production activities at 10.3 percent from 10.8 percent year-on-year. Corporates' total debt stood at P11.3 trillion in April.

Transportation and storage firms slowed borrowing as their outstanding loans increased by only 14.9 percent from 22.1 percent.

Meanwhile, manufacturing firms posted a loan growth of 0.6 percent, slowing from 2 percent in March.

Other industries which registered slower loan growth included the wholesale and retail trade and repair of vehicles at 9.9 percent from 11.6 percent and financial and insurance activities at 7.5 percent from 10.8 percent.

Real estate firms also slowed borrowing at 9.6 percent from 8.9 percent, while information and communication firms decreased loans at 7.7 percent from 8.9 percent.

However, consumer loans to residents slightly increased by 24 percent from 23.9 percent mainly due to credit card transactions. Total consumer debt reached P1.8 trillion.

Specifically, credit card loans grew by 29.3 percent from 29 percent.

However, auto loans remained steady at 19 percent growth, while general purpose loans decreased to 9.3 percent from 9.9 percent.

Thus, total loans to residents grew slower by 11.9 percent from 12.4 percent.

Loans to non-residents decreased faster by 10 percent from 5.6 percent.