Bank lending continued to expand in September, though at a slightly slower pace, as borrowing activity across key industries and consumer segments remained resilient, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

Outstanding loans issued by universal and commercial banks (U/KBs) grew 10.5 percent year-on-year, easing from 11.2 percent in August. Seasonally adjusted data showed a modest 0.3 percent increase month-on-month, reflecting steady credit demand despite tighter financial conditions.

Loans extended to residents rose by 10.9 percent in September from 11.6 percent the previous month, while lending to non-residents contracted by 2.9 percent, marking an improvement from August’s 5.9 percent drop.

Bulk of total lending

Credit for production activities — which account for the bulk of total lending — grew by 9.1 percent, down from 9.9 percent in August. Key sectors driving the increase included real estate (9.2 percent), electricity, gas, and air-conditioning supply (27.1 percent), wholesale and retail trade (9.1 percent), financial and insurance activities (8.8 percent), information and communication (8.6 percent), and transportation and storage (15.4 percent).

Meanwhile, consumer loans — covering credit cards, motor vehicle loans, and salary-based lending — expanded by 23.5 percent, only slightly slower than 23.9 percent in August.

The BSP said it continues to monitor lending growth as part of its monetary policy transmission, noting that bank credit plays a key role in supporting domestic demand and investment.

The central bank reaffirmed its commitment to ensuring that domestic liquidity and bank lending conditions remain coordinated with its price and financial stability objectives.