Auto, housing loans rise slightly, BSP reports

MANILA, Philippines - Auto, housing, credit card, and personal loans grew slightly for the last three months of 2008, which may be an indication that Filipinos remain hesitant to borrow and spend. Consumer loans grew by only 2.5 percent to P380 billion during the period, the Bangko Sentral ng Pilipinas (BSP) said in a consolidated lending data report. Lenders also reduced granting personal loans, cutting it by 12 percent to only P37 billion during the period as borrowers in this category defaulted on payments. Default rates on personal loans, classified as other loans, reached 12.3 percent, totalling P683 million, the BSP data said. Moreover, reduced personal loans given by banks corresponded with the time the BSP reported sharp declines in consumption loans, no thanks to falling household consumption activities. Bulk of consumer loan expansion at 40.5 percent or P153.9 billion was driven by the rise in residential real estate borrowing, BSP governor Amando M. Tetangco Jr. said. Credit card receivables for the period grew by 29.1 percent or P110.6 billion while car loans grew by 20.7 percent or P78.5 billion. Other loans accounted for only 9.7 percent of consumer loans or only P37 billion. Sixty percent of all consumer loans worth P228.3 billion were given by regular banks as well as expanded license banks while the balance of 40 percent or P151.7 billion were taken out of thrift lenders Consumer loan default rates as a whole remained subdued at only 8.6 of aggregate portfolio from 8.5 percent three months earlier. This was due to the 2.9 percent hike in non-performing loans (NPLs) to P32.6 billion outpacing the 2.5 percent expansion in consumer loans. As a result, the ratio of non-performing consumer loans to total NPLs stood at 25.3 percent, up from 24.1 percent three months earlier. Non-performing consumer loans to total loan portfolio was unchanged from three months earlier at 1.3 percent. The ratio of non-performing consumer loans to total consumer loans of thrift banks at 8.1 percent was slightly better than the 8.9 percent reported by the regular commercial and expanded license banks, the BSP said. However, big commercial banks had much better non-performing consumer loans to total NPLs at only 19.3 percent and non-performing consumer loans to total loan portfolio (at 0.9 percent) ratios than thrift banks’ 52.7 percent and 4.3 percent, respectively. - GMANews.TV