Consumer loans jump to P959.2B in June

MANILA, Philippines – Consumer loans extended by Philippine banks rose to 19.3% in the first half of 2015 due to strong demand for auto and real estate loans, the Bangko Sentral ng Pilipinas (BSP) reported Monday, November 2.
 
Consumer loans extended by universal, commercial, and thrift banks amounted to P959.2 billion ($20.49 billion) in end-June 2015, P155.13 billion ($3.31 billion) higher compared to P802.05 billion ($17.10 billion) in the same period last year.
 
The amount was also 2.83% or P26.4 billion ($562.66 million) higher compared to P932.78 billion ($19.88 billion) booked in end-March this year.

The quarter-on-quarter growth in consumer loans started in 2008. (READ: Consumer loans rise by 25% in 2014 to P902 billion)
 
Consumer loans rise

The BSP reported that auto loans reached P259.36 billion ($5.53 million) in end-June or P52.32 billion ($1.12 billion) more compared to P207.04 billion ($4.41 billion) in end-June last year.
 
Residential real estate loans surged 17.34% to P409.17 billion ($8.72 billlion) in end-June 2015 from P348.7 billion ($7.49 billion) in the same period last year.
 
Residential real estate loans, however, were P2.27 billion ($48.36 million) lower compared to P411.44 billion ($8.77 billion) booked in March this year.
 
Salary loans also surged 89.6% to P84.57 billion ($1.81 billion) in end-June form P44.6 billion ($951.97 million) in the same period in 2014.

The banking industry’s credit card receivables went up by 5.87% to P166.45 billion ($3.55 billion) in end-June 2015 from P157.22 billion ($3.35 billion) in end-June 2014.

The quality of consumer loans improved amid the rise in consumer lending, BSP noted.
 
The non-performing commercial loans of universal, commercial, and thrift banks represented 4.5% of total commercial loans, a decline from the 4.9% posted a quarter earlier.

Universal, commercial, and thrift banks also provisioned for 61.2% of their non-performing consumer loans as buffer for potential credit losses during the period.
 
Lowest in ASEAN

As a percentage of total loan portfolio, the 16.7% consumer credit exposure of Philippine banks remained the lowest among the member economies of the Association of Southeast Asian Nations (ASEAN).
 
The commercial loan exposure in Malaysia stood at 57.1%; Indonesia, 28.3%; Thailand, 27.9%; and Singapore, 25.9%.
 
BSP said it monitors the level and quality of consumer and other bank loans to ensure their adherence to high credit standards. – Rappler.com

Consumer credit application form image from Shutterstock

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