Business loan demand rebounds slightly in May

Singapore

BANK lending in Singapore rose for the seventh straight month in May, growing 0.2 per cent as business loans picked up and housing loans held steady.

Fresh data from the Monetary Authority of Singapore (MAS) on Thursday showed that total business loans ticked up 0.2 per cent month on month to S$428.48 billion in May, after a flattish performance in April.

Loans to the single largest business segment, building and construction, grew 0.1 per cent for the second straight month to S$152.37 billion.

Notably, loans to manufacturing were up 5.1 per cent to S$28.26 billion in May, to reverse the 3.4 per cent decline in April, while loans to transport rose 0.3 per cent to S$24.77 billion to reverse the 4.1 per cent contraction in April.

Loans to general commerce were up 0.9 per cent to S$68.86 billion, while loans to others also rose 1.1 per cent to S$31.81 billion.

Loans to financial institutions, however, dipped 1.5 per cent in May to S$99.94 billion.

Loans to business services were also down 1.8 per cent to S$10.73 billion over the same period, albeit less than the 5 per cent decline in April.

Overall, loans through the domestic banking unit - which captures lending in all currencies but reflects mainly Singapore-dollar lending - stood at S$693.72 billion in May.

Consumer loans continued its growth streak, rising for the 10th straight month. In May, the rise was 0.3 per cent to S$265.25 billion.

Housing loans, which make up three-quarters of consumer lending, grew for the ninth straight month; the rise was by 0.2 per cent to S$205.10 billion.

Unsecured personal loans, excluding credit cards, increased 1.6 per cent to S$40.51 billion in May.

Car and credit card loans bucked the trend, respectively down 0.1 per cent and 2.9 per cent to S$8.41 billion and S$9.52 billion.

Loans to share financing fell 1.8 per cent to S$1.71 billion over the same period.

Overall, total bank lending in May increased by 1.2 per cent year on year, faster than the 0.4 per cent rise in April. Total business loans fell 0.5 per cent while total consumer loans were up 4.2 per cent.