Filipinos’ credit card, salary loans still growing twice as fast as bank lending

Lending for consumer needs in the Philippines expanded at double the pace of total bank lending in February 2025, driven by sustained demand for credit cards, motor vehicle financing and salary loans, according to the Bangko Sentral ng Pilipinas (BSP).

Key highlights:

• Consumer loans rose by 24.1% in February 2025, led by credit card and auto loans
• Credit card loans surged 28.9%, while motor vehicle loans climbed 19.2%
• Overall bank lending increased 12.2%, slower than 12.8% in January
• Production loans grew by 11.2%, supporting sectors like energy, trade, construction
• M3 domestic liquidity expanded by 6.3% year-on-year to ₱18.0 trillion
• BSP reiterates commitment to price and financial stability

Outstanding consumer loans by universal and commercial banks grew by 24.1 percent year-on-year in February, far outpacing the 12.2 percent rise in overall bank lending for the same period. The BSP said this was slightly slower than the 24.4 percent consumer loan growth recorded in January.

By contrast, the expansion in total loans outstanding, net of short term bank placements with the BSP, decelerated from 12.8 percent in January. On a monthly seasonally adjusted basis, bank lending rose by just 0.6 percent.

The increase in consumer borrowing was led by a 28.9-percent jump in credit card loans and a 19.2-percent rise in motor vehicle loans. Salary-based consumption loans also grew by 11.5 percent.

Loans for production activities, which made up the bulk of lending, increased by 11.2 percent in February. Lending was notably strong in electricity, gas, and air-conditioning (21.5 percent), transportation and storage (20.6 percent), and construction (12.7 percent).

Meanwhile, separate BSP data showed domestic liquidity rose by 6.3 percent to P18 trillion in February. The growth in money supply was driven by a 12.3-percent expansion in bank credit to the private sector, despite a marginal 0.3 percent month-on-month decline.

The BSP said it would ensure monetary policy remains responsive to changing economic conditions, noting that bank credit remains a key driver of economic activity as demand for household and business financing continues to recover.