Credit expansion picks up in Jan

MANILA, Philippines - Credit growth rose nearly 18 percent in January from the revised growth of 17.3 percent in December amid the continued growth in the economy. 

According to data released by the  Bangko Sentral ng Pilipinas (BSP), the outstanding loans of commercial banks amounted to P5.99 trillion in January, P909.19 billion higher than the P5.08 trillion in the same period last year.

BSP Governor Amando Tetangco Jr. attributed the faster  growth to the higher loan releases to the production sector,  which rose 17.5 percent to P5.34 trillion in January.  

Loans to real estate activities went up by 18.7 percent to P1.06 trillion  and accounted for 17.7 percent of the total loan portfolio while lending to the manufacturing sector jumped 20.6 percent to P858.44 billion.

Lending to the wholesale and retail trade as well as repair of motor vehicles and motorcycles increased 8.5 percent to P833.26 billion for a 13.9 percent share while lending to electricity, gas, steam and airconditioning supply rose 15.8 percent to P664.55 billion for an 11.1 percent share.

Tetangco said the growth in loans for household consumption likewise accelerated to 23.7 percent in January from the revised 22.4 percent in December. Loans for household consumption amounted to P484.94 billion in January.

Statistics showed motor vehicle loans zoomed 34.2 percent to P209.44 billion from P156.09 billion while credit card loans booked a double-digit growth of 11.5 percent to P197.49 billion from P177.13 billion.