Bank lending posted a notable year-on-year increase of 12.2 percent in December 2024, up from 11.1 percent in November, according to preliminary data released by the Bangko Sentral ng Pilipinas (BSP). This growth signals sustained confidence in the country’s economic recovery, with businesses and consumers continuing to take advantage of accessible credit.
Outstanding loans of universal and commercial banks (U/KBs), excluding reverse repurchase (RRP) placements with the BSP, continued their upward trajectory in December, bolstered by a 1.4 percent month-on-month increase. Loans to residents saw a robust 12.4 percent growth, higher than November’s 11.4 percent performance, further signaling strong demand for financing in both business and consumer sectors.
Key sectors such as wholesale and retail trade, manufacturing, and construction were significant contributors to the increase in production loans, which grew by 10.8 percent in December, up from 9.8 percent in the previous month. The electricity, gas, and air-conditioning supply sector saw a 14.2 percent increase, while construction-related lending surged by 12.6 percent.
In the consumer loan segment, a notable 25 percent growth was recorded, driven by rising demand for credit card loans, salary-based loans, and motor vehicle financing. This highlights a recovery in household consumption, signaling positive prospects for consumer-driven economic growth.
Looking ahead, the BSP remains committed to ensuring that domestic liquidity and lending conditions are aligned with its goals of price and financial stability, while also supporting sustainable economic growth. The continued increase in bank lending is seen as a key driver of the Philippines’ economic momentum in 2025.
