Philippine bank loans rise 12.1% in May despite softer card and auto loans

Loans for manufacturing and trade activities rose during the month.

Philippine banks extended 12.1% more loans in May 2026 compared to a year ago, according to data from the Bangko Sentral ng Pilipinas (BSP).

Outstanding loans to residents grew 12.6% year-on-year during the month, whilst loans for business activities expanded 11.7% over the same period.

Consumer loans to residents grew 19% YoY, slightly slower than April’s 19.6% growth, which reflects softer expansion in credit card and motor vehicle loans.

Loans to the electricity, gas, steam, and air-conditioning supply industry rose by 32.9% YoY, whilst loans for real estate activities expanded by 7.3% YoY.

Loans for wholesale and retail trade, and repair of motor vehicles and motorcycles, rose by 10.1% YoY.

Manufacturing loans increased by 6.4% YoY, and loans for transportation and storage jumped by 21.4% YoY during the month.

Banks in the Philippines have earlier set expectations for steady loan demand from businesses and households in Q2 2026, based on results of the BSP’s Q1 2026 Senior Bank Loan Officers’ Survey.