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

Published 28 Sep 2026Data as of 8 Sep 2026PhilippinesMacro & householdsUnsecuredVehicle finance

Correction: Removed an unverified peak growth figure for August 2025.

Universal and commercial bank loans rose 10.4% year on year to PHP 14.98 trn in July.
Consumer loan growth eased to 17.1% (down from 17.8% in June; eleventh consecutive monthly slowdown).
Credit cards grew 24.5%, auto loans 7.0% and salary-based loans 9.9%.

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 (the August 2025 starting level is not verified against primary data here). 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.

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.

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. The BSP primary statistics page was not retrieved.

Figures: see definitions

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
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

Reports are for information only and are not investment advice. Methodology: sources, verification and definitions