Philippine consumer loan growth slows to 16.2% in August as total bank lending quickens
Key points
- Consumer loans of universal and commercial banks grew 16.2% year on year in August, down from 17.1% in July.
- Credit cards still lead at 23.3%; motor vehicle loans grew 5.8% and salary-based loans 11.6%.
- Total bank lending growth rose to 11.0%, driven by production loans at 10.6%.
Facts
Total lending: outstanding loans of universal and commercial banks reached PHP 15.12 trn at end-August (up from PHP 14.98 trn in July), a year-on-year increase of 11.0% (up from 10.4% in July). 1 Production loans grew 10.6% (up from 9.8% in July). 2
Consumer lending: consumer loans to residents grew 16.2% (down from 17.1% in July) to PHP 2.08 trn. 3 Credit card receivables rose 23.3% (down from 24.5% in July) to PHP 1.32 trn. 4 Motor vehicle loans grew 5.8% and salary-based general purpose loans 11.6%. 5
Liquidity: domestic liquidity (M3) grew 11.2%. 6 The figures are BSP preliminary data.
Analysis
Time series: total bank lending growth recovered from a dip in June and is back near the spring pace (chart). Consumer loans moved the other way, slowing again from 17.1% in July. 7 With headline inflation at 6.1% in August, 8 real consumer-loan growth is still high.
Mix: credit cards, the fastest-growing and highest-yield consumer segment, account for PHP 1.32 trn of the PHP 2.08 trn consumer book, so the slowdown includes the segment where repayment risk is highest. The consumer-loan NPL ratio was 5.49% in July (up from 5.44% in June). 9
Cross-country: Philippine consumer loan growth remains well above Malaysian household loan growth of 5.2% 10 and Indonesian bank consumer credit growth of 5.0% in August. 11
| 2026-03 | 10.7 |
|---|---|
| 2026-04 | 11.4 |
| 2026-05 | 12.1 |
| 2026-06 | 9.8 |
| 2026-07 | 10.4 |
| 2026-08 | 11 |
Outstanding loans of universal and commercial banks, y/y at month-end, BSP preliminary data as reported in the press (total loans, not consumer loans) · Source: Bangko Sentral ng Pilipinas monthly bank lending data, as reported by Philstar/Inquirer (2026-03, 2026-04, 2026-05, 2026-06, 2026-07, 2026-08) The July report states the figures exclude reverse repurchase agreements with the BSP. Preliminary figures.
Implications
Counterpoints and uncertainties
The figures are preliminary and can be revised; the release gives growth by product but not delinquency by product, so the link between slower card growth and credit quality is not established by this data alone. A further rise in inflation in September, which the BSP projected, could slow consumer borrowing more sharply.
Figures: see definitions
- Bank lending growth: 11.0% (up from 10.4% in July). Year-on-year growth of outstanding loans. Universal and commercial banks. Basis date: 31 Aug 2026. Source: Philstar: Bank lending growth reaches 3-month high (2026-10-02)
BSP preliminary data.
- Production loan growth: 10.6% (up from 9.8% in July). Year-on-year growth of loans for production activities. Universal and commercial banks. Basis date: 31 Aug 2026. Source: Philstar: Bank lending growth reaches 3-month high (2026-10-02)
- Consumer loan growth: 16.2% (down from 17.1% in July). Year-on-year growth of outstanding consumer loans to residents. Universal and commercial banks. Basis date: 31 Aug 2026. Source: Philstar: Bank lending growth reaches 3-month high (2026-10-02)
- Credit card loan growth: 23.3% (down from 24.5% in July). Year-on-year growth of outstanding credit card receivables. Universal and commercial banks. Basis date: 31 Aug 2026. Source: Philstar: Bank lending growth reaches 3-month high (2026-10-02)
- Salary-based loan growth: 11.6%. Year-on-year growth of outstanding salary-based general purpose consumption loans. Universal and commercial banks. Basis date: 31 Aug 2026. Source: Philstar: Bank lending growth reaches 3-month high (2026-10-02)
- Domestic liquidity (M3) growth: 11.2%. Year-on-year growth of domestic liquidity (M3). Philippines. Basis date: 31 Aug 2026. Source: Philstar: Bank lending growth reaches 3-month high (2026-10-02)
- 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
- Headline CPI inflation (PSA): 6.1% (down from 6.2% in July; fourth consecutive monthly slowdown). Year-on-year change in the consumer price index. Philippines, national. Basis date: 31 Aug 2026. Source: GMA News: Inflation slows down for fourth straight month at 6.1% in August
- Consumer loan NPL ratio: 5.49% (up from 5.44% in June). Non-performing consumer loans as a share of consumer loans (BSP data). Philippine banking system. Basis date: 31 Jul 2026. Source: Inquirer: Bad loans up amid continuing consumer strain (2026-09-09)
- Household loan growth (BNM): 5.2% (down from 5.3% in July). Year-on-year growth of outstanding household loans, banking system. Malaysia, banking system. Basis date: 31 Aug 2026. Source: Bank Negara Malaysia: Monthly Highlights & Statistics, August 2026 (released 2026-09-30)
- Consumer credit growth (BI, YoY): 5.0% (down from 5.3% in July 2026). Year-on-year growth of bank consumption loans (kredit konsumsi), BI money survey. Indonesia, banking system (BI money-survey basis). Basis date: 31 Aug 2026. Source: Industry.co.id: Uang Beredar Agustus 2026 Tumbuh 8,2%, Kredit Perbankan Makin Terakselerasi (2026-09-24), citing Bank Indonesia
Bank Indonesia's money-survey credit series (loans only; excludes debt securities and bankers' acceptances). Differs from OJK's commercial-bank series. Headline total growth confirmed in BI's release (bi.go.id, checked 2026-09-29); segment breakdowns from media reports citing BI (Kontan, Industry.co.id), which agree.
Sources
Reports are for information only and are not investment advice.