consumer loans increasing 9%
consumer loans rose in the second quarter as loan demand increased in the back of an improving economy, according to data released by the Bangko Sentral ng Pilipinas (BSP) showed.
In June, consumer credit extended by universal suffrage, commercial banks and savings stood at P434.6 billion, up 9% from P398.6 billion in the same period last year and 4.2% from P417.2 million in the first quarter.
For such products, residential real estate loans cornered the bulk of total consumer loans, with 40% or P173.7 million. Credit card receivables was second with 26.3% or P114.2 million, while cars and other consumer loans was in the rear with 24.3% or P105.6 million and 9.4% or P41. 1 billion, respectively.
The central bank said that universal and commercial banks accounted for the bulk of the loans, totaling P265 billion or 61% of the total.
Savings banks accounted for 39% or P169.6 million.
Consumer spending, fueled by money sent home by millions of Filipinos living and working abroad, has helped drive the domestic economy to rebound by 7.9% in the first half of last year’s slowdown.
Remittances in the six months to June stood at $ 9,100,000,000, an increase of 6.9% year on year, to June hitting a record $ 1.6 million, 8.3% more than one year.
Banks have been increasingly focusing on strategies on how to undermine the market for consumer loans, corporate loans painfully along a plateau in the large conglomerates, prefer to tap alternative sources of funding such as capital and markets values.
central bank data showed that Filipinos are again making investments in real estate. residential real estate loans, representing the largest portion of consumer loans, rose 5.4% year on year and 3.3% over the previous quarter.
Savings banks, which specialize in retail banking, 51. 3% of total residential real estate loans in the second quarter, and universal and commercial banks, 48.7%.
bank credit card credit, including those of its subsidiaries of credit cards, rose by 4.9% year on year and 4% quarter over quarter.
Automobile loans, including those conducted by subsidiaries of the banks non-banks increased by 22.7% year over year and 6% from the previous quarter.
Other consumer loans or loans for the purchase of appliances, furniture, accessory, or to pay the bills, rose 9% year on year and 4.9% from the previous quarter.
loan quality improves every quarter to quarter, said the central bank, with the proportion of consumer non-performing loans to total loans to 9.3% in the second quarter from 9.4% in the first three months of the year.
Quality deteriorated, however, in a year on an annual basis, with the proportion of delinquent consumer loans to total loans at 9% in the second quarter last year.
Lending has been improving as the economy accelerated, with the central bank’s latest statistics showing the growth of loans between commercial and universal banks at 11.7% year on year in July.
The central bank said higher loans for production activities, as well as for household consumption