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Philippine banks’ loan growth held steady in November, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Outstanding loans of universal and commercial banks, net of reverse repurchase agreements, grew by 10.3% year on year to PHP 13.988 trillion in November from PHP 12.676 trillion in the same month in 2024.

November’s growth rate matched the pace of October. October saw the slowest growth in bank lending since the 10.1% recorded in June 2024.

On a seasonally adjusted basis, bank lending expanded by 0.9% month on month.

“Outstanding loans from universal and commercial banks (U/KBs) to businesses and individual consumers expanded in November,” the central bank said in a statement released late on Tuesday.

“Preliminary data show that loans from U/KBs grew at a steady rate of 10.3% year on year in November,” it added.

BSP data showed that big banks’ outstanding loans to residents grew by an annual 10.7% to PHP 13.681 trillion in November, slightly easing from the 10.9% growth seen in the previous month.

On the other hand, loans to nonresidents fell by 4.5% year on year to PHP 307.253 billion from the 11.1% drop logged in October.

Banks’ loans to residents for production activities grew by 9% to PHP 11.789 trillion in November, slowing from 9.1% in the previous month.

This as lending for electricity, gas, steam, and air-conditioning supply sector jumped by 26.6%. Other segments that showed growth in lending include transportation and storage (12.7%); wholesale and retail trade, repair of motor vehicles and motorcycles (11.6%); real estate activities (9%); information and communication (7%); and financial and insurance activities (3.5%).

Meanwhile, big banks’ consumer loans to residents — which account for credit card, motor vehicle, and general-purpose salary loans but exclude residential real estate loans — rose by 22.9% in November to PHP 1.892 trillion, slightly slower than the 23.1% growth in October.

Broken down, credit card loans jumped by 29.5% to PHP 1.158 trillion, picking up from the 29.2% growth in October, while lending growth for motor vehicles eased to 16.3% at P524.037 billion from 17.6% in the previous month.

On the other hand, loans for general-purpose salaries reached PHP 164.932 billion in November, climbing by 6.4%. This is a tad faster than 5.8% a month ago.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the consistent double-digit expansion in bank lending can help spur the local economy, especially after the sharp slowdown in the third quarter of 2025.

“Banks’ loan growth still at double-digit levels could still bode well as a leading indicator to the broader economic growth,” he said in a Viber message.

Mr. Ricafort noted that the 10.3% loan growth in November was mainly because of the fast growth in consumer loans, particularly credit card and motor vehicle loans, “amid the country’s favorable demographics.”

In the coming months, banks may see more demand for loans if the BSP lowers key borrowing costs and the reserve requirement ratio (RRR) further to match the Federal Reserve’s moves.

“Loan growth could continue to sustain at double-digit growth levels if the Fed cuts rates further in the coming months that could be matched by the BSP, alongside possible cut/s in local banks’ RRR, all of which could further reduce borrowing costs that could spur greater demand for loans or credit and help boost investments and overall economic growth,” Mr. Ricafort said.

The Monetary Board has so far slashed the benchmark policy rate by a total of 200 bps since August 2024, bringing it to its lowest in over three years at 4.5%.

BSP Governor Eli M. Remolona, Jr. left the door open for another 25-bp cut at its first meeting this year on Feb. 19, though noted that the current easing cycle is nearing its end as the current policy rate is approaching their neutral rate.

On the other hand, the Fed has so far delivered 175 bps in cuts since September 2024, bringing its key policy rate to the 3.5%-3.75% range. It is scheduled to have its first meeting this year on Jan. 27-28.

Money supply

Meanwhile, separate BSP data showed that domestic liquidity (M3) rose by 7.6% year on year to PHP 19.439 trillion in November from PHP 18.071 trillion. This was slower than the 8.3% climb in October.

M3 is considered as the broadest measure of liquidity in an economy.

The country’s money supply expanded by 1.2% month on month on a seasonally adjusted basis.

Domestic claims, which include claims from private and government entities, jumped by an annual 10.6% year on year to PHP 21.984 trillion, picking up from the 10.5% growth in October.

This as higher borrowings boosted net claims on the central government by 11% to PHP 5.888 trillion. This was up from 10% growth a month earlier.

Meanwhile, claims on the private sector rose by 11.1% to PHP 14.162 trillion, faster than the 11% the previous month, amid “continued expansion in bank lending to non-financial private corporations and households.”

Claims on a sector refer to that sector’s liabilities to depository corporations such as banks and the central bank.

Central bank data also showed net foreign assets (NFA) in peso terms climbed by 4.4% in November versus the 2.1% expansion in October.

“NFAs of the BSP increased by 1.9%,” the BSP said. “Similarly, NFAs of banks grew primarily on account of lower foreign currency-denominated bills payable.”

Broken down, the central bank’s NFAs grew by 1.9% year on year, a turnaround from the 0.4% decline in October, while banks’ NFA climbed by 26.9%, slightly faster than the 26.3% the previous month.

NFAs reflect the difference between depository corporations’ claims and liabilities to nonresidents.

“The BSP monitors bank loans because they are a key transmission channel of monetary policy,” the central bank said. “Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives.” — Katherine K. Chan

Philippine shares fell for a second session on Wednesday after the peso slid to a record low, weighing on investor sentiment.

The benchmark Philippine Stock Exchange index dropped 0.29% to 6,389.81, while the broader all-share index slipped 0.06% to 3,635.94.

Late selling pulled the market lower, with sentiment pressured by the peso’s weakness and higher global oil prices amid tensions in Iran, Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said.

“The peso’s weakness also weighed on the bourse,” he said in a Viber message.

The local currency closed at PHP 59.44 a dollar, down 9.9 centavos from its previous finish, according to Bankers Association of the Philippines data. This marked its weakest close on record, surpassing the PHP 59.355 logged on Jan. 7.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the decline reflected mild profit-taking after recent gains, following the government’s decision to trim its infrastructure spending target.

The Department of Budget and Management lowered the infrastructure spending goal to 4.3% of gross domestic product this year from 5.1%, citing the need for more cautious disbursement after a corruption scandal weighed on spending and growth last year.

Acting Budget Secretary Rolando U. Toledo said the revised target translates to about PHP 1.3 trillion.

Despite Wednesday’s dip, Mr. Ricafort said the index remains at its highest levels in more than five months, supported by gains since late December and continued foreign inflows.

Sectoral performance was mixed. Mining and oil stocks rose 1.81%, while holding firms gained 1.57% and industrials added 0.58%.

On the other hand, services fell 1.76%, while financials declined 1.2%.

JG Summit Holdings, Inc. led index gainers, climbing 4.8% to PHP 26.20. China Banking Corp. was the worst performer, sliding 3.72% to PHP 60.70.

Decliners beat advancers 97 to 95, with 71 stocks unchanged. Value turnover rose to PHP 6.92 billion, with 1.86 billion shares traded, compared with PHP 6.75 billion and 1.26 billion shares in the previous session.

Foreign investors remained net buyers, though inflows eased to PHP 291.46 million from PHP 506.15 million a day earlier.

Markets also tracked global developments, including softer US equities and higher oil prices, which added pressure on risk assets.

Analysts said the peso’s direction and policy signals from the Bangko Sentral ng Pilipinas would remain key drivers in the near term. — Alexandria Grace C. Magno

The peso weakened further on Tuesday to end near its record low following fresh tariff threats from US President Donald J. Trump and rising political risk in Japan.

The local unit closed at PHP 59.341 versus the greenback, declining by 8.1 centavos from its PHP 59.26 finish on Monday, data from the Bankers Association of the Philippines data showed.

This was its worst showing in nearly a week or since its all-time low close of PHP 59.355 per dollar recorded on Jan. 7.

The peso opened Tuesday’s trading session slightly weaker at PHP 59.28 versus the dollar. Its intraday best was at PHP 59.26, while it dropped to as low as PHP 59.36 against the greenback.

Dollars traded increased to USD 999.22 million from USD 887.3 million on Monday.

“The dollar-peso closed higher mainly due to geopolitical concerns after Trump said that any country that does business with Iran will get a 25% tariff,” a trader said in a phone interview.

The peso was also dragged by a weaker yen after signals from the camp of Japanese Prime Minister Sanae Takaichi on a possible snap election next month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader said the peso could weaken further and even test the PHP 59.50 level as heightening geopolitical tensions may lead to safe-haven demand for the greenback.

For Wednesday, the trader expects the peso to move between PHP 59.10 and PHP 59.50 per dollar, while Mr. Ricafort sees it ranging from PHP 59.20 to PHP 59.40. — Aaron Michael C. Sy

Philippine stocks ended lower on Tuesday as investors pocketed their gains following the market’s three-day climb and awaited the release of key US data that could affect the US Federal Reserve’s policy decision this month.

The bellwether Philippine Stock Exchange index (PSEi) went down by 0.17% or 11.20 points to close at 6,408.76, while the broader all shares index slipped by 0.07% or 2.75 points to finish at 3,638.38.

“The local market retreated ever so slightly after the three-day win streak, as investors await fresh leads,” AP Securities, Inc. said in a market note.

“The local market pulled back as investors took profits following three days of rallying. The market digested the Philippines’ October foreign direct investments (FDI) data, which posted a 40% decline in net inflows,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

FDI net inflows dropped by 39.8% to USD 642 million in October from USD 1.067 billion in the same month in 2024, the Bangko Sentral ng Pilipinas (BSP) reported late on Monday.

For the first 10 months, net inflows fell by 24.5% to USD 6.179 billion from USD 8.184 billion in the comparable year-ago period.

“Investors are also waiting for the US December consumer price index (CPI) data, which is expected to provide clues on the Federal Reserve’s policy outlook,” Mr. Tantiangco added.

US consumer prices likely accelerated in December as some of the distortions related to the government shutdown that had artificially lowered inflation in November unwound, which would cement expectations of the US Federal Reserve leaving interest rates unchanged this month, Reuters reported.

The CPI likely increased by 0.3% last month amid higher food and energy prices, mostly electricity because of data centers, a Reuters survey of economists predicted. In the 12 months through December, the CPI is forecast to have increased 2.7%, matching November’s gain.

The Fed tracks the Personal Consumption Expenditures Price indexes for its 2% inflation target. The US central bank is expected to keep its benchmark overnight interest rate in the 3.5%-3.75% range at its Jan. 27-28 meeting.

Back home, most sectoral indices closed lower on Tuesday. Industrials fell by 0.55% or 50.97 points to 9,088.80; property decreased by 0.44% or 10.44 points to 2,336.77; financials went down by 0.21% or 4.60 points to 2,174.57; and holding firms retreated by 0.16% or 8.51 points to 5,018.4.

Meanwhile, mining and oil jumped by 2.09% or 359.21 points to 17,475.64; and services increased by 0.47% or 12.26 points to 2,575.43.

Advancers outnumbered decliners, 104 to 94, while 70 names closed unchanged.

Value turnover rose to PHP 6.75 billion on Tuesday with 1.26 billion shares traded from the PHP 6.64 billion with 1.02 billion issues that changed hands on Monday.

Net foreign buying decreased to PHP 506.15 million from PHP 534.17 million. — Alexandria Grace C. Magno with Reuters

Over eight million customers of Manila Electric Co. (Meralco) will see lower electricity bills this month as the power distributor announced a rate cut on Monday.

The overall electricity rate declined by PHP 0.1637 per kilowatt-hour (kWh) to PHP 12.9508 per kWh in January from PHP 13.1145 per kWh in December, the company said in a statement.

Residential households consuming 200 kWh will see their monthly electricity bills go down by PHP 33. Customers using 300 kWh, 400 kWh, and 500 kWh will see reductions of PHP 49, PHP 65, and PHP 82, respectively.

Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said the decline in power rates was driven by the lower transmission charge.

“While there were upward pressures on certain cost components this January, the overall electricity bill still went down for the second consecutive month. We hope this will help our customers, especially at the start of the new year,” Mr. Zaldarriaga said in Filipino during a briefing.

The residential transmission rate dropped by PHP 0.10 per kWh to PHP 1.0368 per kWh mainly due to lower ancillary service charges incurred by the National Grid Corp. of the Philippines from its bilateral contracts and the reserve market.

Contributing to the downward adjustment was the lower generation charge, which declined by PHP 0.0171 per kWh to PHP 7.7471 per kWh due to lower costs from the Wholesale Electricity Spot Market (WESM) and power supply agreements (PSAs).

Charges from WESM fell by PHP 1.1898 per kWh as the supply situation in the Luzon grid improved. PSA charges likewise declined by PHP 0.0516 per kWh as a coal plant in Quezon province returned to operations.

Meanwhile, the cost of electricity charged by independent power producers (IPPs) increased due to higher fixed fees from a major gas plant, as well as the peso depreciation, affecting their costs that are mostly dollar denominated.

The peso closed at PHP 58.79 per dollar on Dec. 29, weakening by P0.145 from its PHP 58.645 finish on Nov. 28.

WESM, PSAs, and IPPs accounted for 7%, 71%, and 22%, respectively, of Meralco’s total energy requirement for the period.

Taxes and other charges slipped by PHP 0.0837 per kWh, further pulling down the overall rate.

The lower charges cushioned the increase arising from the implementation of the green energy auction allowance equivalent to PHP 0.0371 per kWh, in accordance with the directive of the Energy Regulatory Commission.

The amount is charged to all on-grid electricity end-users to fund the incentives of new renewable energy projects under the government’s green energy auctions.

“Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and renewable energy subsidies are all remitted to the government,” Meralco said.

Meralco’s distribution charge has not been adjusted since the PHP 0.0360 per kWh reduction in August 2022.

Summer forecast

With the anticipation of higher demand during the summer months, Mr. Zaldarriaga assured consumers that there will be adequate power supply.

“We have always ensured that we have adequate capacity in coming into our system to make sure that we will be able to supply efficient, reliable, and adequate electricity to all our customers,” he said.

On the distribution side, Meralco First Vice-President and Head of Networks Froilan J. Savet said the company is implementing proactive and preventive maintenance of its facilities.

“We continue to implement our capex (capital expenditure) projects, including the installation of additional lines and the construction of substations, to ensure we provide reliable and quality service to our customers,” Mr. Savet said in Filipino.

Meralco also warned against theft of electrical facilities, including power cables, following a recent attempt in Quezon City that resulted in a temporary disruption of electricity service to nearly 8,000 customers.

In 2025 alone, the power distributor reported 285 theft incidents of electrical facilities, including power cables. Most of these resulted in service interruptions while four resulted in physical injuries.

“Beyond the inconvenience caused by service interruptions, these acts pose life-threatening risks due to the high voltage of Meralco facilities. Any contact with energized facilities can lead to electric shock, severe injuries, or even death,” Mr. Savet said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

The main index soared to the 6,400 level on Monday to hit a near six-month high amid growing hopes for another rate cut from the Bangko Sentral ng Pilipinas (BSP) next month.

The Philippine Stock Exchange index (PSEi) surged by 1.13% or 71.82 points to end at 6,419.96, while the broader all shares index increased by 0.94% or 34.13 points to 3,641.13.

This was the PSEi’s best finish in nearly six months or since it closed at 6,444.16 on July 24.

“Philippine equities have officially risen back to index levels seen prior to the flood control fiasco, driven by the dovish tone sung by the BSP chief, hinting at a high chance of a 25-basis-point (bp) cut this upcoming February meeting,” AP Securities, Inc. said in a market note.

Last week, BSP Governor Eli M. Remolona, Jr. said a cut remains on the table at the Monetary Board’s Feb. 19 meeting, even as he noted that the policy rate is already “very close” to where they want it to be, signaling an imminent end to their easing cycle.

The Monetary Board has lowered benchmark borrowing costs by a total of 200 bps since its rate cut cycle began in August 2024. In 2025 alone, it delivered a cumulative 125 bps in cuts for five straight meetings to bring the key rate to an over three-year low of 4.5%.

“The PSEi ended in the green, supported by sustained buying momentum throughout the session. Market sentiment further improved following Nomura’s forecast that the BSP could possibly deliver 25-bp rate cuts in both February and April,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Expectations of a more accommodative policy stance further encouraged risk-taking among investors,” he said.

Nomura Global Markets Research said in a Jan. 9 report that the BSP may ease its policy stance further this year as the corruption scandal may continue to dampen government spending and economic growth.

Nomura Chief ASEAN (Association of Southeast Asian Nations) Economist Euben Paracuelles and Macroeconomic Research Analyst Yiru Chen said the BSP could deliver one 25-bp cut each at its February and April meetings.

All sectoral indices closed higher on Monday. Mining and oil surged by 5% or 815.87 points to 17,116.43; financials increased by 2.13% or 45.62 points to 2,179.17; property went up by 1.87% or 43.28 points to 2,347.21; industrials climbed by 0.81% or 73.53 points to 9,139.77; holding firms jumped by 0.7% or 34.99 points to 5,026.91; and services increased by 0.33% or 8.53 points to 2,563.17.

Advancers outnumbered decliners, 142 to 80, while 53 names closed unchanged.

Value turnover went up to PHP 6.64 billion on Monday with 1.02 billion shares traded from the PHP 6.11 billion with 1.57 billion issues that changed hands on Friday.

Net foreign buying increased to PHP 534.17 million from PHP 320.68 million. — Alexandria Grace C. Magno