Philippines July bank net loans rise 11.8% year-on-year

Philippines July bank net loans rise 11.8% year-on-year

In a significant development for the Philippine banking sector, the country's July bank net loans surged by 11.8% year-on-year, according to recent data [1]. This marked a notable increase from the previous period, signaling a robust recovery in the banking industry following the global economic downturn.

The surge in net loans can be attributed to several factors, including the central bank's aggressive interest rate cuts and the increased demand for corporate financing. The Bangko Sentral ng Pilipinas has been proactive in implementing multiple interest-rate reductions, totaling 150 basis points since last year, to bolster economic growth and stimulate lending [1].

San Miguel Corp., a prominent Philippine conglomerate, has been a key player in the country's offshore loan market. The company is currently in talks with banks for a $1.5 billion loan, set to be launched in the fourth quarter of this year. This syndicated loan, with a tenor of five years, is expected to be used for general corporate purposes [1].

The Philippines has seen a decline in dollar-denominated loans this year, with bilateral deals falling 26% to $2 billion compared to the same period in 2024. This trend can be attributed to the increased attractiveness of peso funding due to the central bank's interest rate cuts [1].

The recent rise in bank net loans underscores the resilience of the Philippine economy and the growing confidence of investors in the country's financial sector. As the global economy recovers, the Philippines is well-positioned to benefit from increased investment and lending activities.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-03/san-miguel-seeks-1-5-billion-in-largest-philippine-loan-of-2025