Real estate loans surge 26%

posted January 04, 2016 at 11:40 pm by Julito G. Rada [manilastandardtoday.com ]

Real estate loans jumped 26 percent in the third quarter of 2015 from a year ago, on the back of strong demand for office space and residential condominium units, data from Bangko Sentral ng Pilipinas show.

Bangko Sentral said real estate loans granted by banks and their trust departments reached P1.232 trillion in the third quarter, up from P977 billion a year earlier.  It was also higher than P1.176 trillion in the second quarter.

The third-quarter figure included P1.228 trillion granted by banks and P4.4 billion by trust departments.

Real estate loans in the third quarter represented 20.72 percent of banks’ total loan portfolio, higher than 20.42 percent in the second quarter.

Commercial real estate loans in the third quarter climbed to P805 billion from P765 billion in the second quarter.

Meanwhile, residential real estate loans improved to P427.370 billion in the third quarter from P411.181 billion in the second quarter.

Banks continued to expand their branch network in 2015, despite the exit of weak players, Bangko Sentral said.

The total number of bank branches increased to 10,606 in the third quarter from 10,528 in the second quarter even as banks’ head offices during the period decreased to 635 from

638.

The number of head offices of universal and commercial banks increased to 37 in the third quarter from 36 in the second quarter.

Thrift banks had a total of 2,052 offices (including branches), up from 2,013 in the second quarter.

Bangko  Sentral said savings and time deposits remained the main sources of funds for domestic banks in the third quarter.

Banks’ total deposits as of end-September 2015 grew 7.8 percent to P6.9 trillion from a year ago.
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