Bank loans and money supply posted slower growths in April 2025 compared to the previous month, according to the Bangko Sentral ng Pilipinas (BSP).
Preliminary data showed that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, expanded by 11.2 percent year-on-year in April, slower than 11.8 percent in March.
The BSP said on a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, increased by 0.3 percent.
Outstanding loans to residents, net of RRPs, grew at a slower rate of 11.9 percent in April from 12.4 percent in March. Meanwhile, outstanding loans to non-residents decreased by 10.0 percent in April, following a 5.6-percent decline in the previous month.
Loans for production activities grew by 10.3 percent in April from 10.8 percent in March. Loan growth eased due to the slower expansion in lending to key industries such as real estate activities (8.9 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (9.9 percent); manufacturing (0.6 percent); financial and insurance activities (7.5 percent); information and communication (7.7 percent); and transportation and storage (14.9 percent)
Consumer loans to residents grew by 24 percent in April from 23.9 percent in March, driven by the increase in credit card loans.
Meanwhile, domestic liquidity (M3) or money supply grew by 5.8 percent year-on-year to about P18.2 trillion in April from 6.2 percent (revised) in March.
Data showed that on a month-on-month seasonally adjusted basis, M3 increased marginally by 0.1 percent.
Domestic claims rose by 10.9 percent year-on-year in April from 10.5 percent (revised) in March.
Claims on the private sector grew by 11.4 percent in April from 11.6 percent (revised) in the previous month with the sustained expansion in bank lending to non-financial private corporations and households.
Net claims on the central government increased by 9.4 percent from 8.1 percent (revised) due to higher borrowings by the national government.
Net foreign assets (NFA) in peso terms decreased marginally by 0.2 percent year-on-year in April compared to 2.6 percent (revised) in March. The BSP’s NFA increased by 0.1 percent. Meanwhile, the NFA of banks declined largely on account of higher foreign currency-denominated bills payable.
“The BSP will continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives,” it said.