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Philippine consumer loan growth slows to 17.1%, an eleventh straight monthly slowdown

Published Data as of PhilippinesMacro & householdsUnsecuredVehicle finance
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Key points

Implications

ExecutivesHousehold credit is seeing slower growth and weaker quality at the same time.
InvestorsBanks with sustained high card-balance growth warrant attention for rising credit costs ahead.
OperatorsReview underwriting for card limit increases and new issuance, and check for loosening in dealer-originated auto loans.

Facts

Total lending: outstanding loans of universal and commercial banks were PHP 14.98 trn at end-July 2026, up 10.4% year on year (up from 9.8% in June; 12.1% in May). Loans to businesses were PHP 12.62 trn (up 9.8% year on year; 84.3% of total loans). Source: BSP preliminary data as reported by Philstar on 9 September. 1

Consumer loans: growth was 17.1% year on year (down from 17.8% in June; eleventh consecutive monthly slowdown). Same source. 2

Breakdown: credit card receivables PHP 1.3 trn (up 24.5% year on year); auto loans PHP 542.85 bn (up 7.0% year on year); salary-based loans PHP 179.66 bn (up 9.9% year on year). Same source.

Analysis

Over time, consumer loan growth has now slowed for eleven consecutive months. When growth slows, arrears on loans booked in the high-growth period tend to surface as higher ratios; the consumer-loan NPL ratio rose to 5.49% in the same month (BSP). Cards are still growing at 24.5% while auto loans grow at 7.0%, so product dispersion is wide.

Counterpoints and uncertainties

Consumer loan growth remains high at 17.1%; 'slowing' does not mean the book is shrinking. Total lending accelerated, so this is not evidence of economy-wide credit contraction.

Key figures

  1. Bank lending growth: 10.4% (up from 9.8% in June; 12.1% in May). Year-on-year growth of outstanding loans. Universal and commercial banks. Basis date: 31 Jul 2026. Source: Philstar: Credit growth rebounds to 2-month high in July
  2. Consumer loan growth: 17.1% (down from 17.8% in June; eleventh consecutive monthly slowdown). Year-on-year growth of outstanding household (consumer) loans. Universal and commercial banks. Basis date: 31 Jul 2026. Source: Philstar: Credit growth rebounds to 2-month high in July

Sources

  1. Philstar: Credit growth rebounds to 2-month high in July
  2. BusinessWorld: Bank lending up 10.4% in July
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Reports are for information only and are not investment advice.

A Japanese version of this article is available: 日本語版

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