Bank lending grows 9.5% in February

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April 2, 2026 | 12:00am

MANILA, Philippines — Bank lending growth edged up in February, signaling sustained credit demand from both businesses and households despite lingering external risks.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that outstanding loans of universal and commercial banks grew by 9.5 percent year-on-year in February, slightly faster than the 9.3-percent expansion in January.

Total loan disbursements reached P14.27 trillion in February, P1.24 trillion higher than the P13.03 trillion a year earlier.

Loans to residents, which account for the bulk of bank lending, expanded by 10.1 percent year-on-year in February, faster than the 9.9 percent growth recorded in January.

Meanwhile, loans to non-residents continued to contract, falling by 13.2 percent from a 10.4-percent decline in January.

Loans for production activities, which make up the largest share of bank credit, grew by 8.6 percent in February, an improvement from 8.2 percent in January. Total production loans stood at about P12.03 trillion, accounting for 84.3 percent of loans to residents.

Lending growth was driven by key sectors, particularly utilities and infrastructure-related activities. Credit to the electricity, gas, steam and air-conditioning supply sector surged by 23.5 percent to P1.92 trillion, while loans to real estate activities rose by nine percent to P2.85 trillion.

Loans to wholesale and retail trade, including motor vehicle repair, increased by 8.2 percent to P1.6 trillion, while lending to transportation and storage grew by 19.3 percent to P583.77 billion.

Credit to water supply, sewerage, waste management and remediation activities also posted strong growth of 26 percent at P252.26 billion.

However, lending to some sectors remained weak. Loans to manufacturing declined by 5.8 percent to P1.18 trillion, while credit to construction fell by 7.7 percent to P493.07 billion.

Meanwhile, consumer lending increased by 20.8 percent year-on-year in February, easing from 21.3 percent in January, as growth in credit card and motor vehicle loans moderated. Total consumer loans reached P1.96 trillion, accounting for about 13.7 percent of loans to residents.

Credit card loans remained the largest component, rising by 27.3 percent to P1.21 trillion. Motor vehicle loans expanded 13.9 percent to P535.35 billion, while salary-based general purpose loans grew 5.6 percent to P167.10 billion.

The BSP emphasized that bank lending remains central to the transmission of monetary policy to the real economy. Looking ahead, the BSP said it would ensure that liquidity and lending conditions remain aligned with its mandate to maintain price and financial stability.

Domestic liquidity, or the amount of money circulating in the economy, grew by 10.3 percent year-on-year to P19.8 trillion in February, separate data showed. The expansion was faster than the 8.6-percent increase in January.