Banks loans increased 10.1%, money supply hit P17.5t in June

Outstanding loans of universal and commercial banks grew 10.1 percent year-on-year in June 2024.

The Bangko Sentral ng Pilipinas said that on a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of placements with the BSP, also rose 0.4 percent.

Outstanding loans to residents grew at a slightly slower rate of 10.1 percent in June from 10.2 percent in May, while outstanding loans to non-residents went up by 9.8 percent, faster than 8.1 percent in the previous month.

Outstanding loans for production activities climbed 8.3 percent in June from 8.4 percent in May. The figure was mainly composed of loans to key industries such as real estate (up 12.3 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (9.3 percent); manufacturing (8.9 percent); transportation and storage (26.2 percent); and electricity, gas, steam, and air-conditioning supply (5.7 percent).

Consumer loans to residents expanded 25.0 percent in June, slightly slower than May’s 25.6 percent, driven primarily by an increase in credit card loans.

Meanwhile, money supply or domestic liquidity (M3) grew 6.6 percent year-on-year to about P17.5 trillion in June, a modest increase from 6.5 percent in May. On a month-on-month seasonally-adjusted basis, M3 increased by about 0.5 percent.

The domestic claims slowed slightly, rising by 10.5 percent year-on-year in June compared to 10.7 percent in May. Claims on the private sector grew by 11.7 percent in June from 11.6 percent in May reflecting the continued expansion in bank lending to non-financial private corporations and households.

Net claims on the central government expanded by 12.1 percent from 12.2 percent due to the sustained borrowings of the national government and the decline in its deposits with the BSP.

The BSP said net foreign assets (NFA) in peso terms rose 8.3 percent year-on-year in June, up from 4.9 percent in May. The BSP’s NFA saw a growth of 12.3 percent, while banks’ NFA contracted, primarily due to higher bills and bonds payable.

The BSP said it would continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives.