Consumer lending, credit card use fuel April bank loan growth

Despite a modest easing in overall credit expansion, the Philippine banking sector continued to show resilience in April 2025, with strong consumer demand—particularly through credit card and auto loans—driving the growth in lending activity.

Data from the Bangko Sentral ng Pilipinas (BSP) released Monday showed that outstanding loans of universal and commercial banks, net of reverse repurchase placements, rose by 11.2 percent to %u20B113.25 trillion in April. While slightly slower than March’s 11.8-percent growth, the latest figure reflects sustained borrowing activity, particularly in the consumer segment.

Consumer lending posted robust performance, accelerating to 24 percent in April from 23.9 percent in March. Credit card receivables led the charge with a sharp 29.3 percent jump year-on-year, reaching %u20B1985.3 billion—an indication of Filipinos’ growing confidence and purchasing activity.

Auto loans also saw a healthy expansion of 19 percent to %u20B1483.82 billion, while salary-based general-purpose loans climbed by 9.3 percent to %u20B1160.38 billion.

“Consumer activity remains a bright spot, as demand for credit continues to support spending and private consumption,” the BSP noted in its report.

Lending to production sectors, which accounts for the bulk of total loans, grew by 10.3 percent in April. Key industries such as real estate, wholesale and retail trade, and transportation continued to see double-digit lending growth, signaling sustained business expansion despite external economic headwinds.

The BSP emphasized its continued commitment to ensuring that domestic liquidity and credit conditions remain supportive of its price stability and financial health goals.

Bank lending remains a crucial engine of economic growth, facilitating investments and consumption. The latest data suggest that while some sectors are showing signs of cautious borrowing, the overall trajectory remains positive, driven by consumer optimism and strong retail credit performance.