MANILA, Philippines - Growth in loans extended by big banks slowed to its lowest level in 18 months in September, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The BSP reported that outstanding loans granted by universal and commercial banks, excluding central bank placements, rose 13.5 percent to P3.003 trillion as of September, down from 14 percent in the first eight months.
The expansion was the slowest since February 2011’s 12.3 percent, BSP figures showed.
However, including money with BSP, loans grew at a faster pace of 14.2 percent from 12.4 percent a month earlier.
“The recent rounds of monetary policy easing, alongside the favorable outlook for domestic demand, are expected to continue to support credit growth amid tepid global economic conditions,” BSP Deputy Governor Juan de Zuñiga said in a statement. He however did not provide reasons for the slower growth.
Data showed bulk of loans still extended for production activities at P2.735 trillion during the first three quarters. This segment experienced an expansion of 13.9 percent, losing pace from 14.1 percent as of August.
Under this category, credit to public administration and defense led the growth with an expansion rate of 51.7 percent. This was followed by loans to wholesale and retail trade (43.1 percent), transportation, storage and communication (29.3 percent), real estate, renting and business services (25.3 percent), financial intermediation (22.2 percent), manufacturing (14.8 percent) and electricity, gas and water (11 percent).
Declines, on the other hand, were observed in lending to mining and quarrying, which dropped 49 percent, and agriculture, hunting and forestry that dipped 46.4 percent, data showed.
Meanwhile, consumer loans - or credit used to finance household needs such as purchasing of appliances - likewise went up at a slower pace of 14.6 percent to P246.101 billion. This compared to September’s 15.8 percent.
Continued loan growth was supported by increasing domestic liquidity, which accelerated to 7.5 percent in the third quarter from 6.2 percent as of August, De Zuñiga said.