PHILIPPINE DAILY INQUIRER - September 1, 2009

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Consumer loans up 3.3%

THE BANGKO SENTRAL NG PILIPINAS reported that the outstanding consumer loans extended by banks as of end-June reached P398.6 billion, up 3.3 percent from the end-March level.

If compared with year-ago level, the end-June 2009 figure was 13.1 percent higher.

The amount covered loans extended by universal, commercial and thrift banks.

Consumer loans include those used for the purchase of real estate property, mostly residential and automobiles, as well as credit card receivables.

The BSP said real estate loans amounted to P164.8 billion as of end-June, up 2.8 percent from P160.38 billion as of end-March. The continued rise in real estate loans indicated sustained growth in demand for residential units, monetary officials said.

Credit card receivables of banks stood at P109.9 billion, up 3 percent from P106.8 billion quarter-on-quarter.

Officials said the rise in credit card loans extended by banks helped spur consumption in the second quarter.

Auto loans reached P86 billion as of end-June, up 5.5 percent from P81.6 billion as of the end of the first quarter.

The rise in car loans was consistent with the vehicle manufacturing industry’s projections that demand for new automobiles would rise this year despite the lingering crisis, which was earlier feared to dampen consumer demand.

Other consumer loans reached P37.68 billion, up 1.9 percent from P36.97 billion, the BSP said.

Earlier, BSP Governor Amando Tetangco Jr. said consumer spending, aided partly by loans from banks, helped boost the economy in the second quarter.

In the first quarter, personal consumption was anemic, resulting in a mere 0.6 percent gross domestic product growth.

During the first three months of the year, officials explained, many Filipino households, especially those dependent on remittances sent by a family members working overseas, spent less and saved more amid fears of layoffs offshore.

In the second quarter, however, households were more confident to spend in view of reports about the gradual recovery of the global economy from the crisis. Some employers offshore that laid off workers due to the crisis were starting to rehire their workers, officials said.

The BSP said remittances, a closely watched economic indicator, fuels demand for real estate, auto loans and other goods and services.