Credit growth picks up as banks lend more to key industries

Business loans expanded 8.6% in February, led by utilities, transport, and infrastructure sectors.

Bank lending picked up pace in February, with loans from universal and commercial banks rising 9.5% year-on-year, slightly faster than the 9.3% growth recorded in January, according to data from the Bangko Sentral ng Pilipinas (BSP). The steady expansion points to continued demand for credit, even as borrowing conditions evolve.

On a month-on-month basis, outstanding loans edged up by 0.8% after seasonal adjustments, suggesting that financing activity remains active across both businesses and households. While the increase from January is modest, it signals that credit growth continues to hold, supporting broader economic activity.

Infrastructure and utilities take the lead

Much of this lending continues to flow into business activities. Loans meant to fund productive sectors grew 8.6% in February, an improvement from 8.2% in the previous month. 

The BSP noted that several industries posted notable gains, led by water supply, sewerage, and waste management, which saw lending surge by 26.0%. Electricity, gas, steam, and air-conditioning supply followed with a 23.5% increase, while transportation and storage expanded by 19.3%.

Other sectors posted more moderate but steady growth. Real estate loans rose by 9.0%, while wholesale and retail trade, including the repair of motor vehicles and motorcycles, grew by 8.2%.

The spread of lending across multiple industries suggests that credit demand is not concentrated in a single sector. Instead, both infrastructure-related segments and consumer-facing industries continue to access financing, reflecting a broader base of economic activity. 

Together, these trends reinforce the role of bank lending as a steady source of support for business expansion and day-to-day operations.

 

 

Credit demand is heating up. Despite global volatility, Philippine banks are ramping up loans to the sectors that power the nation—utilities and transport—signaling a robust start to the 2026 business year.

 

 

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