June bank lending sees fastest monthly growth since 2018

Singapore

SINGAPORE bank lending in June logged the fastest monthly growth since March 2018, up 1.5 per cent to S$703.92 billion as business loans gain further momentum.

On Friday, data from the Monetary Authority of Singapore showed that business loans grew at a faster pace in June, up 1.9 per cent to S$436.76 billion as compared to the 0.2 per cent increase seen in May and a flattish performance in April.

This came even as loans to the single largest business segment - building and construction - slipped 0.7 per cent to S$151.33 billion. It is the only segment to buck the trend.

Loans to financial institutions led the stronger rebound in June, up 3.6 per cent to S$103.51 billion, while loans to general commerce rose 5.4 per cent to S$72.60 billion in June.

Loans to others were up 1.6 per cent to S$32.34 billion; loans to manufacturing grew 1.8 per cent to S$28.76 billion; and loans to transport increased by 1.6 per cent to S$25.16 billion.

Year on year, total business loans were up 2.6 per cent, marking the first time in positive growth territory since July 2020.

Consumer loans held steady in June, up 0.7 per cent month on month to S$267.17 billion, and up 5 per cent year on year.

Housing loans, which make up three-quarters of consumer lending, maintained its growth streak for the 10th straight month, up 0.6 per cent to S$206.29 billion in June. This was faster than the 0.2 per cent growth seen in May.

Unsecured personal loans, excluding credit cards, grew 1.8 per cent to S$41.23 billion in June, while loans for share financing were up 1.4 per cent to S$1.73 billion.

As for car loans and credit card loans, both segments ticked down 0.1 per cent to S$8.40 billion and S$9.52 billion respectively.

Overall, total loans through the domestic banking unit - which captures lending in all currencies but reflects mainly Singapore-dollar lending - were up for the eighth consecutive month.

Year on year, total bank lending in June increased by 3.5 per cent, faster than the 1.2 per cent rise in May.