Loans issued by universal and commercial banks (U/KBs) in the Philippines continued their upward trajectory in November 2025, reflecting sustained economic activity and consumer confidence. Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) shows a steady expansion in credit.
Overall Lending Growth Remains Robust
The central bank reported that outstanding loans from U/KBs grew at a year-on-year rate of 10.3 percent in November. This indicates a consistent flow of credit into the economy. On a month-to-month basis, after accounting for seasonal factors, lending still increased by 0.9 percent.
A closer look reveals a slight deceleration in loans to residents, which grew by 10.7 percent compared to 10.9 percent in October. However, lending to non-residents showed improvement, declining at a slower pace of 4.5 percent after a sharper 11.1 percent contraction the previous month.
Key Sectors Driving Business Lending
Loans intended for business activities posted a solid 9.0 percent increase during the period. Several major industries were significant contributors to this growth:
- Electricity, gas, and airconditioning supply led the pack with a remarkable 26.6 percent surge in loans.
- The transportation and storage sector saw credit expand by 12.7 percent.
- Lending for wholesale and retail trade, and vehicle repair grew by 11.6 percent.
- Real estate activities maintained a steady 9.0 percent growth.
- Other growing sectors included information and communication (7.0%) and financial and insurance activities (3.5%).
Consumer Credit Maintains Strong Momentum
On the consumer front, lending remained exceptionally vigorous. Loans to residents for personal consumption, which encompass credit card debt, motor vehicle financing, and general-purpose salary loans, expanded by 22.9 percent in November. This was only a marginal easing from the 23.1 percent growth recorded in October, highlighting continued strong demand from Filipino households.
The BSP closely monitors bank lending data as it is a primary channel for transmitting monetary policy decisions to the broader economy. The sustained growth in both business and consumer loans suggests that financial conditions are supportive of economic expansion.
Looking forward, the BSP has stated it will continue to ensure that domestic liquidity and bank lending conditions are in line with its primary goals of maintaining price stability and financial system stability. This means the central bank will calibrate its policies to support growth while guarding against inflationary pressures and risks in the financial sector.
