Bank lending in the Philippines continued to expand at the start of 2026, although at a slightly slower pace, reflecting sustained credit demand from both businesses and households even as monetary conditions remain closely monitored.
Preliminary data showed that loans issued by universal and commercial banks grew by 9.3 percent year-on-year in January, easing marginally from the revised 9.6 percent expansion recorded in December 2025. Despite the slight deceleration, the figures indicate that lending activity remains resilient amid evolving economic conditions.
On a seasonally adjusted basis, outstanding bank loans increased by 1.0 percent month-on-month in January, signaling continued momentum in credit activity across the banking sector.
Loans extended to Philippine residents maintained strong growth, rising by 9.9 percent in January compared with a revised 10.1 percent expansion in the previous month. In contrast, lending to non-residents continued to decline, with outstanding loans dropping by 10.4 percent after an 8.0 percent contraction in December.
Business lending remained a key driver of credit growth, expanding by 8.2 percent during the month as banks continued to finance activities across several major industries. Lending grew particularly in real estate activities, which recorded a 9.1 percent increase, while electricity, gas, steam and air-conditioning supply surged by 20.3 percent, reflecting sustained investments in energy and utilities.
Other sectors that posted solid loan growth included wholesale and retail trade as well as repair of motor vehicles and motorcycles, which rose by 8.3 percent. Lending to financial and insurance activities climbed by 5.5 percent, while information and communication recorded a 4.9 percent expansion. Meanwhile, transportation and storage posted one of the strongest increases at 19.1 percent, highlighting growing logistics and mobility demand as economic activity continues to recover.
Consumer lending also remained robust. Loans to residents for household consumption—including credit card borrowings, motor vehicle loans, and general-purpose salary loans—expanded by 21.3 percent in January, slightly easing from the revised 21.5 percent growth recorded in December.
The Bangko Sentral ng Pilipinas closely monitors bank lending trends as credit activity serves as a crucial transmission channel for monetary policy and broader economic conditions.
Looking ahead, the central bank said it will continue to ensure that domestic liquidity and lending conditions remain aligned with its mandates of maintaining price stability and safeguarding the country’s financial system.