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MANILA - The thrift banking arm of the Metrobank group upgraded its forecast for loan growth this year to at least a fifth.
Pascual M. Garcia III, president of Philippine Savings Bank, said its loan portfolio got a boost from consumer lending, which grew 14 percent in the first half of the year.
"From our perspective, we’re experiencing improved demand for our loans. This is a very good sign. We will surpass our target for the year as far as loan growth is concerned,” Garcia said.
PSBank earlier set a 15 percent forecast for full-year loan growth.
"I am a bit more positive, especially after the Bangko Sentral ng Pilipinas cut the policy rates. This will help in accelerating loan demand further,” Garcia said, referring to the BSP decision to cut key interest rates by 25 basis points to new record lows of 3.75 percent and 5.75 percent for the overnight borrowing and lending windows.
Pascual Garcia, PSBank president, being interviewed for the first time, months
after the Corona impeachment trial (Bernard Testa/InterAksyon.com)
“We’ve seen higher loan demand across all loan products, whether auto, mortgage, personal loans, corporate or business loans. The higher loan demand is not just on one area,” Garcia said.
“Things are looking up for the economy in spite of the global economic slowdown. Fortunately, we’re very insignificantly exposed to Europe as far as the industry is concerned,” he said.
With its sound macroeconomic fundamentals, the Philippines is likely to earn another upgrade in its credit rating, said the PSBank executive.
“I think a credit upgrade is forthcoming over the next six months because all the indicators are there for everyone to see, including the rating agencies,” he said.
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