12:09 am | Monday, October 1st, 2012
An SMDC condominium project. the recent increase in housing loans was accounted for largely by demand in Metro Manila, according Patrick Cheng, president of the Chamber of Thrift Banks.
MANILA, Philippines—The thrift banking industry said the outlook on auto, housing and other consumer loans remained rosy for 2013.
According to Patrick Cheng, president of the Chamber of Thrift Banks, lending by industry members is expected to continue posting double-digit growth next year. He said it would be driven primarily by consumer loans, especially car and housing.
“The economy is doing well. If the economy continues to grow at a healthy pace as projected, the increase in loans will stay at double-digit levels,” Cheng told reporters.
He said a robust economic growth, which indicated rising incomes, would fuel more demand for automobiles, thereby increasing requirements for car loans.
On housing loans, Cheng said thrift banks saw a huge opportunity for credit growth, especially outside Metro Manila.
He said the recent increase in housing loans was accounted for largely by demand in Metro Manila. He said demand for real estate loans in the provinces was also expected to grow over the short to medium term.
“We see more and more lending growth opportunities outside Metro Manila. There is still a huge market that remains untapped,” he said.
Data from the BSP showed that the combined outstanding loans extended by thrift banks amounted to P402.54 billion as of the end of March, up by 13.7 percent from P354 billion a year ago.
Thrift banks serve the credit needs of consumers, and small and medium enterprises.
Cheng said the thrift banking sector was expected to maintain in 2013 a growth rate that would at least be double the rate of the economy’s expansion.
Data from the BSP further showed that thrift banks in the country had generated a combined net income of P2.2 billion in the first quarter, up by 18 percent from P1.86 billion in the same period last year.
In the first quarter, the economy grew by 6.3 percent year on year. In the first half, the average growth of the economy stood at 6.1 percent.
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Tags: Banking , economy , forecasts , lending growth , Loans , Philippines , thrift banks
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