QUICK LOOK: PH bank lending up 12% in Dec 2024, consumer loans drove growth

Key points:

• Overall lending growth – Bank lending by universal and commercial banks (U/KBs) increased 12.2 percent year-on-year in December 2024, up from 11.1 percent in November, according to the Bangko Sentral ng Pilipinas (BSP).
  
  
• Consumer loans as main driver – The highest level of lending growth was seen in consumer loans, which surged 25 percent, driven by credit card spending, salary-based loans, and auto loans.
  
  
• Strong production lending – Loans for production activities rose 10.8 percent, with key contributions from wholesale & retail trade (10.1 percent), electricity and gas (14.2 percent), and construction (12.6 percent).
  
  
• Rising foreign lending – Loans to non-residents expanded 5.7 percent, a faster rate than 3.9 percent in November, reflecting increased demand from foreign entities.
  
  
• BSP’s economic strategy – The central bank said it aims to maintain stable liquidity and lending conditions to support economic growth and financial stability .