Loans to real estate sector up 17.5%

By Lawrence Agcaoili (The Philippine Star) Updated December 09, 2009 12:00 AM

MANILA, Philippines - The combined exposure of universal, commercial

, and thrift banks to the real estate sector expanded by 17.5 percent in the first nine months of the year due to the construction and development of more commercial spaces and the acquisition of more residential units.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that the combined exposure of the industry to the real estate sector amounted to P376.77 billion as of end-September this year or P56.03 billion higher than the P320.74 billion registered in the same period last year.

Real estate loans extended by universal

, commercial, and thrift banks jumped by 17.4 percent to P366.89 billion from January to September this year compared with P312.51 billion in the same period last year.

Loans extended for the construction and development of real estate properties for commercial purposes surged by 21 percent to P204.39 billion from P168.85 billion while loans for the acquisition, construction or improvement of residential units to be occupied by household borrowers expanded by 13.1 percent to P162.49 billion from P143.66 billion.

Statistics showed that investments in securities issued by real estate companies grew by 19।9 percent to P9.88 billion in the first nine months of the year from P8.24 billion in the same period last

Universal and commercial banks accounted for 71.6 percent or P269.92 billion of the total exposure to the real estate sector while thrift banks cornered the remaining 28.4 percent or P106.84 billion.

The exposure of universal and commercial banks increased by 21 percent from last year’s P223.24 billion while the exposure of thrift banks to the real estate sector inched up by 9.6 percent from a year-ago level of P97.5 billion.

The exposure to the real estate sector accounted for about 15 percent of the industry’s total loan portfolio that stood at P2.496 trillion from January to September this year.

This was an improvement of the ratio of 13.6 percent of the industry’s total loan portfolio of P2.362 trillion in the same period last year.