Outstanding loans of Philippine banks rose 12.1% in May from a year earlier, according to a report by Asian Banking & Finance, citing central bank data. The growth was driven primarily by a sustained expansion in business lending, even as consumer loans for credit cards and auto purchases showed signs of moderation.
Loans to businesses accounted for the bulk of the increase, supported by robust economic activity and continued demand for working capital. In contrast, credit card loans and auto loans posted slower growth compared to previous months, suggesting a cautious approach among consumers amid elevated interest rates and inflation concerns.
The overall lending growth reflects the banking sector's confidence in the domestic economy, though softer consumer segments may signal tighter household budgets. Analysts will be watching upcoming data for further signs of a shift in borrowing patterns.