Lending by domestic financial institutions grew modestly in February, rising 9.5% compared to January’s 9.3%, according to the Bangko Sentral ng Pilipinas (BSP).
Outstanding loans to residents climbed 10.1%, up from 9.9% in January, while loans extended to non-residents dropped sharply by 13.2%, reversing the previous month’s 10.4% growth.
Business lending also strengthened, increasing 8.6% in February from 8.2% in January. Growth was driven by lending to key sectors, including water supply, sewerage, and waste management (26%); electricity, gas, steam, and air-conditioning supply (23.5%); transportation and storage (19.3%); real estate (9%); and wholesale and retail trade, including motor vehicle and motorcycle repair (8.2%).
On the consumer side, loan growth slowed to 20.8% from 21.3% in January, reflecting weaker demand for credit card and motor vehicle loans.