SALARY-BASED consumer loans surged by more than half as of September, according to data released by the Bangko Sentral ng Pilipinas (BSP).
Data showed salary-based general purpose consumption loans jumped 56.8 percent to P117.391 billion as of September 2022 from P74.869 billion in the same period last year.
This accounted for 1.1 percent of the net of reverse repurchase (RRP) placements of universal and commercial banks (U/KBs) with the BSP which amounted to P10.494 trillion as of September.
“The continued expansion in lending activity and ample liquidity will support the recovery of economic activity and domestic demand. Looking ahead, the BSP will ensure that liquidity and lending conditions remain consistent with its price and financial stability mandates,” BSP said.
Salary-based loans are under Consumer Loans which posted a growth of 20.5 percent to P965.99 billion as of September 2022, from P801.398 billion in the same period in 2021.
Also under consumer loans are credit card and motor vehicle loans which posted a growth of 26.1 percent and 4.3 percent in September 2022, respectively.
Credit card loans increased to P507.416 billion in September 2022 from P402.407 billion in September 2021.
Motor vehicle loans, meanwhile, increased to P324.12 billion in the period ending September 2022 from P310.77 billion in the same period in 2021.
“Consumer loans to residents grew by 20.5 percent in September from 18.3 percent in August, driven mainly by the year-on-year increase in credit card loans, motor vehicle loans, and salary-based general purpose consumption loans,” BSP said.
Net of reverse repurchase (RRP) placements of U/KBs with the BSP expanded by 13.4 percent year-on-year in September, faster than the 12.2-percent increase in August.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, increased by 1.7 percent.
Outstanding loans to residents, net of RRPs, rose by 13 percent in September following an expansion of 12.1 percent in August.
Outstanding loans for production activities went up by 12.3 percent in September from an 11.5-percent expansion in the previous month, due mainly to the rise in lending to key sectors such as real estate activities at 16.3 percent.
The data also showed lending to manufacturing increased 16.2 percent; information and communication, 25.5 percent; and wholesale and retail trade, repair of motor vehicles and motorcycles, 10.8 percent.
Outstanding loans to non-residents also increased by 26.6 percent in September after a 16.3-percent expansion in the previous month.
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