MANILA, Philippines – The consumer loans portfolio of universal, commercial, and thrift banks jumped 27% in the first quarter of 2015, the Bangko Sentral ng Pilipinas (BSP) reported Tuesday, September 1.
Data released by the central bank showed consumer loans amounted to P932.78 billion ($19.98 billion) from January to March this year or P197.68 billion ($4.23 billion) higher compared to P735.1 billion ($15.74 billion) in the same period in 2014.
The amount was also P30.3 billion ($648.69 million) or 3.4% higher compared to P902.47 billion ($19.32 billion) booked in the fourth quarter of 2014.
“This sustains the quarter-on-quarter growth in commercial loans that began in 2008,” the BSP said.
Commercial lending up
BSP reported that commercial lending by universal and commercial banks went up 22.3% to P589.6 billion ($12.62 billion) in the first quarter of the year from P482.25 billion ($10.33 billion) in the same period last year.
Loans extended by thrift banks jumped 35.7% to P343.18 billion ($7.35 billion) from P252.85 billion ($5.41 billion).
The central bank explained consumer lending during the first quarter was lifted by an increase in residential real estate loans and continued growth in auto loans.
Real estate loans went up by 25.8% to P411.44 billion ($8.81 billion) in the first quarter from P326.92 billion ($7 billion) in the same period last year.
Auto loans increased 25.8% to P244.61 billion ($5.24 bilion) from P194.37 billion ($4.16 billion).
Consumer loans also include credit card receivables and salary loans. BSP also reported a 4.2% rise in credit card receivables to P159.84 billion ($3.42 billion) from P153.4 billion ($3.29 billion).
Non-performing commercial loans manageable
The bank regulator said major banks in the Philippines kept the level of their non-performing commercial loans manageable.
At end-March, the BSP said non-performing commercial loans of universal, commercial, and rural banks stood unchanged at 4.9% of their total commercial loans.
Likewise, the BSP said banks set aside provisions for 62.2% of their non-performing commercial loans as a cushion for potential credit losses.
Moreover, the banks’ consumer credit exposure of 16.7% of total loan portfolio remained lower than other countries in Southeast Asia. Malaysia led with 53.8%; followed by Indonesia with 28.6%; Thailand with 27.7%; and Singapore with 25.8%.
BSP said it would continue to closely monitor the quality of all types of bank lending to ensure the banks’ adherence to high credit standards.
“This is essential to fostering financial stability, which is a key policy objective of the BSP,” it said. – Rappler.com
$1 = P46.71
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