MANILA, Philippines — Outstanding loans issued by universal and commercial banks (U/KBs) in the Philippines continued to grow in May 2025, with credit activity boosted by both business and consumer demand, the Bangko Sentral ng Pilipinas (BSP) reported.

According to preliminary BSP data, bank lending rose 11.3 percent year-on-year, slightly higher than April’s 11.2 percent increase. Seasonally adjusted data also showed a 0.9 percent month-on-month rise in outstanding loans.

Lending to Philippine residents expanded by 11.8 percent, while loans to non-residents contracted by 6.6 percent, though the decline was slower than April’s 10.0-percent drop.

Business-related loans—which account for the bulk of lending—grew by 10.2 percent in May. However, this was marginally lower than April’s 10.3 percent growth, amid a slower expansion in key industries:

Real estate activities: +8.7%

Wholesale and retail trade, repair of vehicles: +9.8%

Transportation and storage: +14.0%

Manufacturing loans: declined by -3.0%

Meanwhile, consumer loans to residents remained robust, increasing by 23.7 percent in May, only slightly down from April’s 24.0 percent. These include credit for motorcycles, cars, credit card debt, and salary loans.

The BSP views credit growth as a critical component of its monetary policy transmission, as borrowing influences both consumption and investment.

Moving forward, the central bank said it will continue to monitor liquidity and bank lending conditions to ensure they support its price and financial stability goals.